Bellway profits soar as housing market gathers pace
British housebuilder Bellway has reported a jump in profit before tax of 73 per cent to £103m for the half year ended 31 January 2014 – the highest ever achieved by the group in a first half trading period.
Bellway said it had responded to strengthening conditions in the housing market across all regions by increasing the number of homes under construction.
The company saw revenue rise by 39 per cent to over £700m, while the number of homes sold increased by 25 per cent to 3,245.
The average selling price also saw a substantial increase of 13 per cent to £212,071. Bellway's total owned and controlled land bank rose from 32,991 plots to over 34,000 plots.
Commenting on the results, chairman, John Watson, said:
Bellway has made significant progress in the six months ended 31 January 2014, with a 74.9 per cent rise in earnings per share to 66.3p and a 660 bps increase in return on capital employed to 17.1 per cent. These substantial improvements have been driven by growth in volume, average selling price and operating margin.