3rd Feb 2006 07:00
Bellway PLC03 February 2006 Trading Update 3rd February 2006 Bellway is issuing the following trading update prior to the publication onTuesday, 4th April of its interim results for the six months ended 31st January2006. The Group has increased the number of homes sold in the period by 1% to 2,958.These sales were achieved at an average selling price of around £168,000, stillone of the lowest in the industry. Our focus continues to be firmly establishedon the lower to middle market, the area of strongest demand. With an expanding national coverage, we are pleased to record the first legalcompletions from our Thames Gateway North division. Our seventeen currentoperating divisions give us scope to increase volumes going forward. Whilst the number of sales outlets is currently similar to last year's level westill anticipate an increase by the summer to around 220, a 12% rise, giving usa strong platform for the 2006/7 financial year. Sales incentives continue to beemployed to encourage home buyers to commit to a purchase and this has putmodest pressure on margins, although not to the extent previously envisaged.Since Christmas, we have seen an upturn in buyer confidence and sales rates havebeen improving, resulting in almost 80% of Bellway's 2005/6 target beingsecured. Whilst the coming weeks are important in confirming this trend, wemaintain our policy of forward selling and our order book currently stands at£562million, a new record for this time of the year. The Group continues to convert more land through its medium term holdings and isalso expanding its portfolio of urban regeneration schemes. We recently wereawarded preferred partner status for over 5,000 homes as part of thecomprehensive regeneration of East and South East Leeds. In addition,development has recently commenced on some 700 new homes, being the first phaseof the major redevelopment of North Solihull. Large schemes such as these helpto underpin our volume aspirations for the future. The improvement in the size and quality of our land bank, combined with anaffordable product range and a strong forward sales position, leaves the Groupwell positioned to achieve its goals for this and coming years. FOR FURTHER INFORMATION, PLEASE CONTACT JOHN WATSON, CHIEF EXECUTIVE OR ALISTAIRLEITCH, FINANCE DIRECTOR ON 0207 262 3226 UNTIL 9.30AM ON 3rd FEBRUARY ANDTHEREAFTER J WATSON: 07855 337007 A LEITCH: 07855 337001 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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