Bellway optimistic about 2011 targets after 2010 sales rise 5%

Housebuilder Bellway (LON:BWY) said sales in the year to 31 July 2010 increased by 5%, while the order book increased from £368 in 2009 to £421 million, which the group said should allow it to meet its sales targets next year.
The group completed 4,595 homes in the full year at an average price of £163,000 compared to 4,380 in 2009 at £154,005 as market returned to its “more usual profile” of a spring peak followed by a quiet summer. The reservation rate increased from 85 per week to 89, while cancellation rates were at 13%.
“Against this background and provided the autumn market follows its usual pattern, then a combination of increased outlets and a current order book of £421 million could help the group achieve its aspiration of producing volume growth in 2010/2011 of up to 10%,”Bellway said in the statement.

Bellway has a net cash balance of £66 million and has already secured 50% of next year’s target, which it said put it in a position to take advantage of opportunities in the market as they arise. The group said that while it continued to be active in the south, more opportunities emerged from its northern divisions.