Bellway eyes 20% rise in full-year sales

5th Jun 2014 07:10

- Demand for new homes robust- Expects 20% hike in full-year sales - Strong balance sheet, reduces debtUK residential property developer Bellway said demand for new homes remains robust, buoyed by growing consumer confidence and a strong supply of mortgages. The FTSE-250 firm took an average of 177 reservations per week in the period from February 1st to May 31st, an increase of 11% from the same period last year as the strong housing market underpins demand.The value of forward order book of homes due for completion beyond July 31st was up sharply at £670m compared to £380m a year earlier. Chief Executive Ted Ayres commented: "The strong UK housing market and our disciplined approach to land investment provides a significant opportunity for ongoing volume growth. The group has a substantial balance sheet and operational capacity for further expansion. "Land with detailed planning permission is already in place to achieve next year's volume growth aspirations. This strong position, together with a focus on improving return on capital employed, ensures that Bellway remains well placed to deliver further enhancement to shareholder value."Bellway also issued a confident full-year forecast, amid strong consumer demand as well as an acceleration of construction programmes. The board now expects the number of legal completions to increase by around 20% for the year ending July 31st 2014.Net bank debt reduced to £47m from £95m the previous year.CJ