Member Article

Bellway announces 50% profit increase

North East housebuilder Bellway has announced a rise in pre-tax profits of over 50%, firmly bucking the trend witnessed by many in the construction sector.

In the year ending 31 July 2011, the group registered a turnover of £888.1 million, an increase of over 100 million on the previous year. Pre-tax profits increased from £44.4 million to £67.2 million.

Chairman of the Bellway Group Howard Dawe commented: “ Against a backdrop of ongoing economic uncertainty, the Group has performed very well in the year ended 31 July 2011.“

“With profit before tax rising by just over 50%, the Board has decided to increase the final dividend by just over 30%”.

During early 2011, the Groups average weekly reservation rate rose, not falling until later in the summer months.

Now reservations in the first nine weeks of the new financial year are almost 11% ahead of the same period last year.

He concluded: “Bellway aims to continue to increase both volumes and average selling prices, the latter by way of ongoing changes in the product mix.

“This, combined with the improvement in the operating margin, should ensure that shareholder value continues to be enhanced”.

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