Boost in sales leads housebuilder to 拢19m recovery
Housebuilder Bellway has reported a rise in pre- tax profit to 拢19m compared with a loss of 拢48m in the same period last year, in interim results released today.
The UK's fifth largest housebuilder by market value also reported a 13% increase in turnover from 拢320m to 拢360m.
Chairman Howard Dawe said "Bellway successfully completed the sale of 2,247 homes in the six months ended 31 January 2010, an increase of 11.6%" and "it is encouraging therefore to report an operating margin of 6.1% achieved in the period.
"The board has continued its policy of paying dividends and is particularly pleased to increase the interim dividend payment by 10% to 3.3 pence per ordinary share.
On the future outlook for the company, he added: 鈥淲hilst the market stabilised during the latter part of 2009, concerns still exist regarding unemployment, mortgage availability and the outcome of the imminent general election.
"However, with the backing of a strong balance sheet and a positive cash position today of around 拢72m, Bellway will be concentrating in the coming months on land acquisition and selectively increasing work in progress, with a particular emphasis on the southern divisions where the market appears to be at a more advanced stage of recovery.
"These actions should assist in returning the operating margin towards a more normal level and the board believes therefore that Bellway is well placed to benefit from a housing market that should gradually improve over time.鈥�
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