BWY7 Aug 2012 08:12
Pre-Close Trading Update and Board Changes
7 August 2012
Bellway p.l.c. is today issuing a pre-close trading update for the financial
year ended 31 July 2012 and is also updating the market on forthcoming Board
changes.
Trading Update
The Group has completed the sale of 5,226 homes, an increase of 6.2% compared
with the previous year's total of 4,922, with this growth being derived
primarily from completions of private homes, which have risen by 13.4% to 4,358
(2011 - 3,843). The greater proportion of private completions, combined with
other changes in product and geographical mix, have resulted in the average
selling price increasing by more than 6% from £175,613 to around £187,000. The
operating margin for the full year will be at least 11% (2011 - 8.5%),
representing continued growth compared with the 10.1% achieved in the first
half of the financial year and, as a result, profit before tax will be modestly
ahead of current consensus of £98 million.
The demand for new homes has remained resilient throughout the year and this,
combined with investment in new site openings, has resulted in the Group
securing an average of 101 reservations per week (2011 - 93), an improvement of
almost 9% on the previous financial year. The enhanced reservation rate has
been achieved with no overall increase in average sales incentives, whilst
simultaneously restricting the use of shared equity schemes to less than 7% of
reservations taken. The Government's NewBuy scheme has contributed 133
reservations in the 20 weeks since its launch on 12 March 2012. The longer-term
effectiveness of this incentive, however, remains dependent on lenders' product
affordability and credit scoring criteria.