In an interim management statement for the four months to 31 May, the company said: “The uncertainties that affected consumer confidence during the challenging autumn trading period appear to have diminished and, encouragingly, there has been a return towards a more normal reservation pattern with a healthy spring selling season, despite ongoing concerns remaining in the wider economy.
“Constraints in relation to mortgage supply, particularly regarding first time buyers, combined with wider economic concerns, continue to pose challenges to the sector. Nevertheless, with a strong order book, low gearing, and the increasing contribution from sites acquired since the downturn, the board believes that Bellway is well positioned to continue delivering both operating margin and volume growth if market conditions remain unchanged.”
In the last four months Bellway has been selling houses at a rate of 111 units a week, up 9% on the same period last year.
The company added that operating margins were also improving as trading from new sites, acquired cheaply since the downturn, start to contribute to a greater proportion of completions.
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