Bellway’s completions in the six months to the end of January are up 6.3% on last year at 4,741, the firm said in a trading statement today.
With average selling price up 7.8% to £276,000 – a record for the firm – then revenue has risen by more than 14% to £1.3 billion in the period.
The firm’s weekly reservation rate is up 7.2% giving Bellway “a strong forward sales position” with the value of the forward order book growing by 15.7% to £1.297 billion. The firm contracted on 6,726 plots of land.
John Watson, Bellway’s executive chairman, had this to say: “Bellway is continuing to make a sizeable contribution to the supply of much needed new homes and has delivered a further increase in both volume and average selling price in the six month trading period. Significant investment in land, together with ongoing plans to expand the divisional structure, should lead to a further increase in output and hence result in additional value creation for our shareholders.”
The firm says market conditions continue to be favourable and customer demand for new homes remains strong.
The firm reported in its statement: “In this positive trading environment, interest from customers remains high, with website traffic and visitors to sales outlets both ahead of last year.
Reservations have followed their usual seasonal trend, with the quieter, albeit positive, summer period followed by an increase in activity over the autumn months. The group has taken 178 reservations per week (2017 – 166), an increase of 7.2% compared to the same period last year and the cancellation rate, a barometer of customer confidence, remains low at under 11% (2017 – under 12%).”