Bellway forecasts 10% hike in half-year sales

4th Dec 2009 07:07

Housebuilder Bellway predicts sales volumes for the first six months to 31 January 2010 will be 10% better than the same time last year, with an operating margin steady at 6% to 7%.Reservations taken between 1 August and 30 November averaged 91 a week, up 51% on a year ago, while cancellation rates are back at a more normal level of around 13%.An improvement in the housing market this year has also lifted average selling prices by about 16% during the four months, due to product and geographical mix, and last year's slump.Bellway says the market in and around London is more robust, but its northern divisions are still experiencing "testing" conditions. But 79% of its current 2009/10 sales target is already secured at average prices ahead of expectations, with another 600 sales reservations secured for 2010/11. It has also started buying up land again, spending £64m in the first four months of the new financial year, mostly in the south. It had £36m of net cash at the end of November and is looking to "secure further opportunities at attractive margins"."The operating margin for the year is likely to be towards the higher end of the range of 6% to 7 % given at the time of our preliminary announcement in October, should current market conditions continue to prevail throughout 2010," the firm said.The Annual General Meeting will be held on 15 January.