Bellway well positioned after healthy spring sales

10th Jun 2011 07:23

Housebuilder Bellway said it is well positioned to deliver operating margin and volume growth if market conditions remain unchanged following a return to a more normal reservation pattern and a healthy spring selling season.The Newcastle upon Tyne based property developer said it achieved a sales rate of 111 units per week in the period from 1 February to 31 May 2011, up 9% on the same period last year, from an average of 195 sites. The average selling price of these reservations increased 4% from last year to £182,000."The uncertainties that affected consumer confidence during the challenging autumn trading period appear to have diminished and, encouragingly, there has been a return towards a more normal reservation pattern," said Bellway in a company statement. With a strong order book, low gearing, and the increasing contribution from sites acquired since the downturn Bellway said it is confident of achieving continued growth.The group said its target of increasing unit completions for the year ending 31 July 2011 by around 5% are now secure, subject to delivery. Around 1,600 reservations have been taken for completion in 2011/12.CJ