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Bellway reports 25% order book boost

by: Emma Lunn
  • 10/02/2015
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Bellway reports 25% order book boost
Bellway has sold 25% more off-plan homes in the first half of its financial year compared to the same period last year.

The homebuilder reported that its forward order book is now worth £975m compared to £783m at this point last year.

In a trading update Bellway also reported 15.7% more housing completions than the same time last year, finishing 3,754 homes compared to 3,245 at this point in 2014.

Bellway chief executive Ted Ayres said: “The group’s strategy of delivering volume growth, with a strong focus on return on capital employed has resulted in a further significant rise in profitability. With advanced plans to open a sixteenth division in the second half of the financial year, Bellway is well positioned to deliver further earnings growth.”

The trading update also said that market conditions remain favourable with continued demand for new homes across the country. The group is currently taking an average of 139 reservations a week, a slight increase compared with the same period last year. 

The growth in volume in the north of the country was particularly strong, with the group completing the sale of 1,822 homes across its seven northern divisions. This represents an increase of 23.6% compared to last year, with significant land investment resulting in a strong performance in Scotland and the North East.

Across the country the average selling price of homes sold has risen by 3% to around £219,000 compared to £212,071 last year.

Housing revenue has risen by approximately 19% to over £820m and the operating margin for the first half of the year is expected to approach 20%, up from 15.6% in 2014.  

 

 

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