Bellway 'well positioned'

13th Oct 2009 07:04

Housebuilder Bellway slumped to a full-year loss after one-off items, but it's maintained the final dividend and is keen to start buying up land, especially in the South East of England.A profit before tax of £34.8m last year turned into a loss of £36.6m in the year ended 31 July 2009. Turnover plunged to £683.8m from £1.15bn. Before exceptional charges of £66.3m - they were £130.9m last year - the company reported a profit of £29.8m, down from £165.7m a year earlier.The number of completed homes tumbled 33% to 4,380 from 6,556 in 2008 at an average selling price of £154,005 versus £169,729 previously. Bellway said that since the start of August reservations are up 58% year-on-year, and by the end of September it had secured 61% of its target output for the current year and a further 440 reservations for 2010/11.Since 1 August, the firm has agreed terms to buy over £120m of land where there is potential to develop in excess of 3,370 homes."It is the group's intention to selectively open new outlets, increase work in progress and acquire land, particularly in the south of England, at attractive margins whilst at the same time carefully monitoring the overall strength of the autumn housing market," said chairman Howard Dawe."With national coverage, a robust balance sheet and low gearing, the board believes Bellway is well positioned."The final dividend stays at 6p a share.