Bellway has reported strong growth in housing sales in an upbeat pre-close trading statement issued ahead of its full-year result.
The group reported “significant volume growth” with a 21.2% increase in the number of housing completions to 6,851, up from 5,652 in the 2013 full-year.
Average selling prices continue to rise and have now reached circa £213,000, which compares with £193,025 in 2013, as a result of ongoing changes in product and geographic mix, together with pricing improvements.
Bellway said it had an “excellent forward sales position” with a substantial 36% growth in the value of the forward order book to a new record of £924.3m.
During the year to 31 July the group said around £460m was spent on land and land creditors – a rise from £300m in 2013 – securing sites that meet or exceed the group’s minimum acquisition criteria.
The company said its balance sheet strength had been maintained with net cash of £5m – up from £5.8m net bank debt a year earlier, “thereby providing significant capacity for future investment”.
Chief executive Ted Ayres said: “The group has reacted positively to the continued strength of the UK housing market, significantly increasing output to satisfy customer demand.
“The favourable trading environment, together with the group’s national presence and strong balance sheet, ensures that Bellway is well positioned to continue its growth strategy and this, together with a strong focus on return on capital employed, should lead to further enhancements to shareholder value.”
chris.berkin@estatesgazette.com
