Housebuilder says it is mindful of Brexit uncertainties but reports little impact
Companies: Bellway p.l.c.
Housebuilder Bellway Plc issued a solid trading update for the six months to 31 January on Tuesday, reporting solid 6.5% growth in volume, and an increased forward order book to £1.12bn.
Despite the uncertainties surrounding the UK's break from the European Union, Bellway says customer demand was robust during H2, with the purchase of a new home affordable and supported by a competitive mortgage environment:
"This strong demand, together with an ongoing programme of site openings, has helped the Group achieve a reservation rate of 166 homes per week (2016 – 156), an increase of over 6% compared to the same period last year."
The number of homes legally completed during the year rose by 6.5% to 4,462, and the value of the forward order book increased by more than 9% to £1,121m. The average selling price jumped 4% to £291k.
Speaking about the fallout from Brexit, the Board said it remained mindful of uncertainty with regards to the economic outlook, but confirmed that the land market remains attractive, which is why the Company has spent £380m million on land and land creditors.
CEO Ted Ayres said Bellway had delivered another strong HY result, increasing legal completions and the value of the forward order book:
"Market conditions remain positive and accordingly Bellway is continuing to invest in a controlled manner, both in land and work in progress, in order to achieve further disciplined volume growth, thereby creating additional value for shareholders.
