Partner Article

Bellway eyes new opportunities

HOUSEBUILDER Bellway today said it was well positioned to exploit new investment opportunities as it predicted 10% growth in the next 12 months.

The Newcastle group completed the sale of 4,595 homes in the year ending 31 July, compared to 4,380 in 2009 – representing a 5% increase.

The firm said it has an order book of £421m, compared to £368m in 2009, which could help it achieve volume growth of up to 10% in 2010/2011.

A company statement said: “Bellway continues to be active in the land market, especially in the south but is beginning to see more opportunities emerge from its northern divisions.

“With around £66m of net cash at 31 July and a unit equivalent of around 50% of next year’s target already secured, the group is well positioned, at the start of its financial year, to exploit future market opportunities.

The company statement also pointed to positive signs of recovery in what has been a tough trading environment.

“The market would appear to have returned to its more usual profile of a spring peak followed by a quieter summer period.

“Concerns still exist in the wider economy but our divisions achieved a slightly higher reservation rate, during the financial year, of 89 per week (2009 - 85) with cancellation rates having returned to their normal level of around 13%.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .