11th Dec 2020 10:27
(Alliance News) - Bellway PLC on Friday said it is in a "robust position" with a strong order book at the end of November despite widespread UK lockdown measures throughout the month.
The Newcastle-upon-Tyne-based residential property builder and developer experienced a "strong underlying demand" for new homes in the period of August 1 to November 29, with a 6% increase in the reservation rate to 210 per week from 199 per week the year prior.
Bellway said it has a substantial forward sales position, as its order book comprises of 6,186 homes compared to 5,770 last November and a value of GBP1.8 million versus GBP1.5 million in 2019. It has 4,163 plots contracted, compared to 3,229 a year prior, across 24 sites, which is four more than 2019's figure. Housing completions for the full year to July 31, 2021 are now expected to increase by around 25%.
Bellway said it has "substantial capacity" to invest further in land and land creditors remain low at around GBP295 million, compared to GBP242 million the year prior.
The company in October resumed dividend payments, having skipped an interim payout, resulting in a 50.0p final dividend, which was down from 100.00p a year before. As a result, the full-year payout was down 67% from 150.4p, but Bellway promised to increase payouts over time as its earnings recover.
Chief Executive Jason Honeyman said: "Bellway is in a robust position and notwithstanding the recent widespread lockdown restrictions throughout the country, sales demand is encouraging, and the order book is strong. We have substantial cash resources, considerable ability to continue investing in land and with our solid operational structure, we are determined to return the group to its strategy of delivering long-term and sustainable growth."
Shares in Bellway were down 1.5% at 2,720.94 pence in London on Friday.
By Zoe Wickens; [email protected]
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