Trading Statement
Bellway p.l.c.
Trading Update
Monday 7 February 2011
Bellway is today updating the market as to its trading performance for the six
months ended 31 January.
The Group completed the sale of 2,332 homes, an increase of 85 units, compared
to the six months ended 31 January 2010. The average sales price of these homes
has risen from £155,871 in the same period last year to £168,000, an
improvement of circa 8%. This increase, whilst aided by greater price stability
during 2010, is primarily a result of the change in product mix as Bellway
continues to change its focus away from apartments towards more traditional two
storey homes.
The operating margin is expected to exceed that achieved in the comparable
period last year of 6.1% by almost 100 basis points. This improvement in margin
should continue in the second six months as more recently acquired sites start
to contribute to completions.
Around £130 million (2010 - £76 million) has been spent on land in the period
and whilst Bellway is no longer in a net cash position, having £7 million of
net debt at 31 January, it remains soundly financed, having recently renewed a
bilateral facility of £150 million with Barclays, one of its banking partners.
This new facility expires in a variety of tranches up until December 2015 and
currently provides the Group with total facilities of £380 million.
In October, our main concern was the effect the Spending Review would have on
consumer confidence and, as already indicated in our last Interim Management
Statement, reservations to the end of November exceeded the Board's
expectations. Whilst site visitors and reservations were obviously hampered by
the cold weather in December, the number of visitors and subsequent
reservations since the beginning of January has been encouraging however, four
weeks is too short a time to consider revising our forecast for the full year.
Currently the Group has an order book of £402 million (2010 - £390 million),
representing 2,343 homes, of which 1,847 should legally complete by 31 July
2011.
The strength of this year's spring selling season should be more apparent, when
the results for the six months to 31 January 2011 are announced on Wednesday 30
March.
Certain statements in this announcement are forward-looking statements which
are based on Bellway plc'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 plc
undertakes no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
JOHN WATSON, CHIEF EXECUTIVE & ALISTAIR LEITCH, GROUP FINANCE DIRECTOR FROM
7.30 AM ONWARDS ON 0191 217 0717
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