Bellway sticks with full year forecasts

7th Feb 2011 07:04

Housebuilder Bellway has been encouraged by the pick up in site visits and reservations in 2011 following the cold snap in December.The group said it sold 2,332 homes in the six months to end-January, an increase of 85 on the corresponding period a year earlier.The average sales price over the period rose to £168,000 from £155,871 a year earlier, largely as a result of selling more traditional two storey homes and fewer flats.Bellway's operating margin at the interim stage is expected to exceed that achieved in the comparable period last year of 6.1% by almost a full percentage point. This improvement in margin should continue in the second six months as more recently acquired sites start to contribute to completions, the group said.The group is no longer in a net cash position, having spent around £130m on land during the reporting period, but with net debt of just £7m it "remains soundly financed".Currently the group has an order book of £402m, up from £390m at the same stage of last year, representing 2,343 homes, of which 1,847 should legally complete by 31 July 2011.