Trading Statement
Bellway p.l.c.
Trading Update
7 February 2012
Bellway is today updating the market as to trading in the six months from 1
August 2011 to 31 January 2012, prior to the announcement of the Interim
Results for that period on Tuesday 27 March.
During the period the Group completed the sale of 2,455 homes (2011 - 2,332),
an increase of 5%, driven by completions of private sales, which have risen by
a healthy 15%. This increase in the proportion of private completions, combined
with other changes in mix, has resulted in the average selling price of all
completions increasing by 8.7% to around £183,000 (2011 - £168,428). The Board
expects that the average selling price will grow further, albeit at a slower
rate, during the remainder of the financial year.
The operating margin continues its improvement and is set to reach double
digits for the six months to 31 January (2011 - 6.9%). This rate of improvement
has now slowed and although the operating margin should continue to grow, it
will do so at a more sustainable pace.
Around £105 million has been spent on land and land creditors in the period and
whilst net debt at the end of January is around £12 million, the Group still
retains facilities of £300 million, which expire in tranches up to November
2016.
Since 1 August reservations have averaged around 89 per week from 205 sites
compared to 80 per week from 185 sites last year. Whilst incentives are used
widely, this increase has been achieved despite reducing the use of shared
equity as an incentive to only 5% of reservations taken. The Group now enters
the second half of the year with an order book of £423 million (2011 - £402
million), having already reserved or legally completed 83% of this year's
target.
The spring selling season is about to commence and last year provides a
challenging comparison in terms of reservations. Nevertheless, with visitor
levels up by around 20% since the beginning of January and with the
Government's new `Mortgage Indemnity Guarantee' (MIG) scheme about to be
launched, early indications are that the housing market remains resilient. To
what extent this resilience is sustainable can be better assessed at the end of
March when the Group announces its Interim Results.
FOR FURTHER INFORMATION PLEASE CONTACT:
JOHN WATSON, CHIEF EXECUTIVE & KEITH ADEY, FINANCE DIRECTOR FROM 7.30 AM
ONWARDS ON 0191 217 0717
Certain statements in this announcement are forward-looking statements which
are based on Bellway p.l.c.'s expectations, intentions and projections
regarding its future performance, anticipated events or trends and other
matters that are not historical facts. Such forward-looking statements can be
identified by the fact that they do not relate only to historical or current
facts. Forward-looking statements sometimes use words such as "aim",
"anticipate", "target", "expect", "estimate", "intend", "plan", "goal",
"believe", or other words of similar meaning. These statements are not
guarantees of future performance and are subject to known and unknown risks,
uncertainties and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements.
Given these risks and uncertainties, prospective investors are cautioned not to
place undue reliance on forward-looking statements. Forward-looking statements
speak only as of the date of such statements and, except as required by
applicable law, Bellway p.l.c. undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
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