Bellway beats its targets

During the six months Bellway sold 2,332 homes, up from 2,247 in the same period a year before. 

Forward order book is also up strongly, at £479.2m as of 13 March, compared to £435.4m a year ago,

Chairman Howard Dawe said: "Bellway has exceeded its targets for the six months.”

He also expressed support for George Osborne’s budget. "Last week's budget announcements regarding our industry are to be welcomed," he said.

In the six months from 1 August, £130m was spent on land and land creditors, resulting in the landbank with planning permission growing to 18,683 plots at 31 January – up from 17,602 six months earlier. Total value of the land bank is £690.7m, up from £619.5m. 

Notable purchases in the six month period include the former training ground of Everton Football Club, a redundant cinema just off Fulham Broadway and a former car assembly factory in Coventry. 

“Our appetite for land purchase continues and this, combined with our ongoing site opening programme, is likely to result in gearing increasing modestly by 31 July,” Mr Dawe said. Gearing is currently less than 1%.

He added: “There is no doubt that the housing market stuttered through the autumn of 2010 and that the inclement weather prior to Christmas had a negative effect on reservation levels.  Since the start of 2011, however, visitors and reservations have returned to the pattern of a traditional spring market, despite a media backdrop of negativity.  Consumer confidence remains fragile and could still be adversely affected by any one of a multitude of factors outside the group's control.  Bellway is, nevertheless, currently well positioned to deliver increasing returns through a combination of rising volumes, growing average sales prices and improving margins. 

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