Bellway expects H1 revenue to rise 12%; says early signs point toward strong spring sales

Writer, Stock Market Wire
Thursday, February 7, 2019 - 07:31

Bellway said Thursday early signs point toward a strong spring selling as the homebuilder sold more homes at higher prices amid ongoing demand for new housing. The company warned, however, Brexit uncertainty could hurt consumer confidence.

For the 6 months ended 31 January, the company said it expected total revenue to rise 12% to almost £1.5m from a year earlier, driven by previous investment in areas of high demand, where average selling prices tend to be higher, the company said.

Completions rose by 5.6% to 5,007 and the average selling price increased by 6.5% to £293,800.

The company achieved record sales performance, with the weekly reservation rate rising by 2.8% to 183 for the half, from a year earlier.

The cancellation rate rose marginally to 13% from 11% a year ago, but the company said demand for new homes remained strong.

'Demand for affordably priced new homes remains strong, supported by an environment of low interest rates and the availability of responsible, higher loan-to-value mortgages, provided through the Government’s Help to Buy scheme,' the company said.

The order book value felt to £1,171.3m for the half, from £1,297.4m a year earlier, comprising 4,587 units, down from 4,629 units a year ago.

'Early signs suggest that customer demand and reservations will follow their usual seasonal trend, however, the Board remains cautious given the uncertainty regarding the UK’s forthcoming exit from the EU and the extent to which this will affect wider customer confidence,' the company added.

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