Broker snap: Evolution says buy Bellway after 'solid' results

18th Oct 2011 10:26

FTSE 250 house builder Bellway bucked the trend to rise higher on Tuesday after what Evolution Securities called a "solid set of results".The company said that full-year pre-tax profits came in ahead of market expectations, rising from £44.4m to £67.2m in the 12 months to the end of July. Consensus forecasted a figure closer to £63.8m.Nevertheless, Evolution said that there was little surprise in the results as most of the content was well guided by the pre-close trading update in August. "We see Bellway as a low risk, high quality name in this space, and today's announcement reinforces that view. Net cash of £3 million with improving profitability from continued improvements in the land mix highlights the strength of the business from here," said analyst Mike Bessell.The broker keeps its buy rating and 790p target.By 10:26, shares were up 1.25% at 686p.BC