Bellway announces small improvements

5th Aug 2011 07:24

Housebuilding company Bellway has announced a slight like-for-like improvement in operations compared with last year. The group has legally completed 4,922 homes, an increase of 7.1% compared with the previous year's total of 4,595, while the average selling price of homes sold has increased by 7.2% from £163,175 to around £175,000. This improvement is largely the results of changes in product mix. Operating margin is set to rise from 6.7% to between 8% and 9% for the full year with the second half margin being closer to 10%. The company anticipates that its performance will result in profit before tax now being modestly ahead of the current market consensus of £62m.Following the Interim Management Statement on 10 June, reservation rates throughout the summer months, whilst traditionally a slower selling period, have been ahead of the same period last year. As at 31 July, the group had net cash of £3m with combined bank facilities of £290m. NR