Bellway raises forecast for new homes as property market grows
HOUSEBUILDER Bellway yesterday raised its forecasts and said it now expects to deliver 20 per cent more homes this year thanks to returning confidence in the housing market and a surge in customer demand.
Pre-tax profits jumped 73 per cent to £103.8m in the six months to 31 January, beating analyst forecasts, while earnings per share increased 74.9 per cent to 66.3p.
Sales rose 40 per cent to a record £701.1m after it sold 3,245 homes, a quarter more than it sold the previous year.
Bellway has a strong presence in London where it owns 34 sites and further expansion into the south of England helped boost its average selling price by 13 per cent to £212,071.
The group’s eight southern divisions now account for 62 per cent of revenues compared with 58 per cent last year.
The strong performance led the group to raise its full-year forecast for sales volume growth to as much as 20 per cent, from 15 per cent previously.
Meanwhile lettings agency Belvoir said a rise in housing activity and Help to Buy had not dampened demand for rental property as it posted a 44 per cent rise in full-year sales to £5.8m.
Profits in the year to 31 January increased by 16 per cent to £1.6m on the previous year.
The Aim-listed group, which runs 160 franchised outlets, attributed its strong performance to its Claygold Property acquisition– its first estate agency business – which generated £604,000 in fees.