House price rally lifts Bellway profits

30th Mar 2011 07:03

Housebuilder Bellway posted higher profits in the six months to 31 January after selling more homes at higher prices, but warned that consumer confidence remains fragile.As previously reported, the company, one of Britain's biggest housebuilders, completed sales of 2,332 homes, up from 2,247 over the same period the previous year. Average prices jumped to £168,428 from £155,871.That helped lift pre-tax profits to £24m from £19m, on turnover that was up to £407.9m from £360.8m. The interim dividend climbs to 3.7p from 3.3p."There is no doubt that the housing market stuttered through the autumn of 2010 and that the inclement weather prior to Christmas had a negative effect on reservation levels," the company said. "Since the start of 2011, however, visitors and reservations have returned to the pattern of a traditional spring market, despite a media backdrop of negativity," the company said.As of 13 March, the forward order book stood at £479.2m, against £435.4m the previous year, Bellway said."Consumer confidence remains fragile and could still be adversely affected by any one of a multitude of factors outside the group's control," the firm reported. "Bellway is, nevertheless, currently well positioned to deliver increasing returns through a combination of rising volumes, growing average sales prices and improving margins."RG