Bloomberg News

Bellway Sees 5% Sales Increase in 6 Months Through January

December 09, 2011

(Updates with today’s share price in sixth paragraph.)

Dec. 9 (Bloomberg) -- Bellway Plc, the U.K. homebuilder focused on first-time buyers, said completed sales will increase by about 5 percent in the six months through January. The shares rose the most in two months.

Sales reservations increased 14 percent from Aug. 1 to Nov. 30 compared with a year earlier and the average price rose by almost 7 percent, the Newcastle-based company said in a statement. Operating margin will be just under 10 percent of sales, little changed from a year earlier.

“The outcome for the full year will be dependent primarily upon consumer confidence, especially during the spring selling season,” the company said.

Bellway committed 71 million pounds ($111 million) during the period to land purchases. The homebuilder plans to have around 215 developments under construction in early 2012, up from 205 at the end of July, as it seeks growth in volume and operating margin.

The company also said it renewed a 150 million-pound banking facility from Lloyds Banking Group Plc.

Bellway rose as much as 4.8 percent to 763.5 pence in London trading, the most since Oct. 6. It was up 3.9 percent at 755 pence as of 10:19 a.m. The stock has risen 8.6 percent in the last six months, boosting the company’s market value to 915 million pounds.

--Editors: Ross Larsen.

Neil Callanan in London at ncallanan@bloomberg.net.

To contact the editor responsible for this story: Ross Larsen at rlarsen2@bloomberg.net.


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