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Bellway completes 7 per cent more houses with margins set to rise

Bellway has announced it has completed an increase of more than 7 per cent on its completed houses in the current financial year.

The housebuilder has completed 4,922 homes, an increase of 7.1 per cent compared to the previous financial year’s total of 4,922 homes.

Bellway announced this following the end of its financial year on 31 July ahead of releasing its preliminary results on Tuesday 18 October.

Group finance director Alistair Leitch will retire from the board on 31 January 2012, to be replaced by group chief accountant Keith Adey.

The group said operating margins were set to rise from 6.7 per cent to between 8-9 per cent for the full year, with strong second half margins of close to 10 per cent.

It added:

  • The average selling price of homes sold has increased by 7.2 per cent from £163,175 to around £175,000 and this increase is mainly derived from changes in product mix.
  • This performance will result in profit before tax now being modestly ahead of the current market consensus of £62 million
  • The group currently has an order book of £426.8 million (2010 - £421.0 million), representing 2,497 homes, of which 2,334 should legally complete in the next twelve months.
  • On 31 July, Bellway had net cash of £3 million with combined bank facilities of £290 million, having expended around £250 million on land and land creditors during the year.
  • In addition, some 4,500 plots with an approximate value of £230 million currently have terms agreed.

The group stated: “Bellway’s continuing aims for 2011/2012 are to deliver incremental volume growth, repair operating margins and, through changes in product mix, improve average selling prices, all of which are largely dependent on the level of consumer confidence and the availability of mortgage finance.”

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