Bellway sees no further writedowns

6th Aug 2009 07:41

Housebuilder Bellway said no further asset write down is envisaged in the year provided current market conditions continue.The group also said despite seeing the traditional decline in visitor numbers during the summer season, current sales rate being achieved is ahead of management's expectations. In the last year, market conditions have been "extremely tough" but conditions proved to be more robust in the southern region.Around 60% of its legal completions have been derived from the south, especially in its North London, Essex and Thames Gateway divisions. In the north, its Yorkshire, North West and Midlands divisions have experienced sustained weakness throughout the last twelve months.During the course of the year, it legally completed the sale of 4,380 homes against 6,556 from last year. The average selling price was around £154,000 (2008 - £169,729)The group said the fall of 9.3% in its average selling price was primarily as a result of incentives offered and a higher percentage of social housing sales. Sales incentives per unit, through discounting, shared equity and part exchange, have been widely used but have not increased over the last few months. It is anticipated that the operating margin will be around 6% - 7%.The order book at 31 July of reservations for future completion stands at £368m (2008 - £37m)."Notwithstanding the extreme market conditions experienced over the last eighteen months, the Group has retained a national coverage and remains in a strong position to grow should markets improve, especially given its robust balance sheet and low gearing," it said.