INTERVIEW: Bellway CEO Sees Autumn Improvement In Sales

15th Jun 2010 08:58

By Anita Likus Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K. house builder Bellway PLC (BWY.LN) expects an upbeat autumn selling season after sales slowed due to the U.K. general election in May, its chief executive said. The U.K. general election "unsettled buyers' thought process," and slowed sales, CEO John Watson told Dow Jones Newswires in an interview. However, he is confident of an improvement. "June and July are quiet months traditionally and this year summer came early...I am still planning to increase my volumes next year and bring on new sites," he said. Watson said 20% of all sites next year will be new sites, which have been bought during the recession at discounted prices and should increase margins. However, if there is another fall in the market, the percentage of sites will fall, he said. If Bellway succeeds in bringing the 20% of new sites in, it will book margins of around 10%. In the mean time, Watson will continue to buy land depending on the strength of the market. Bellway has GBP55 million cash and facilities of GBP305 million with Lloyds Banking Group PLC (LLOY.LN). -By Anita Likus, Dow Jones Newswires; +44 20 7842 9407; [email protected] (END) Dow Jones Newswires June 15, 2010 03:58 ET (07:58 GMT)