Bellway reports encouraging start to 2011
Newcastle-based housebuilder Bellway has today reported a 26% rise in first-half profit and experienced strong activity in home buying since the start of 2011.
The housebuilder, which is the fifth largest by market value, said pre-tax profits came in at £24 million for the six month period to the end of January – compared with £19 million in the same period a year ago.
In a statement, Howard Dawe Bellway’s chairman, said: “Visitors and reservations have returned to the pattern of a traditional spring market” but “consumer confidence remains fragile.”
Meanwhile, the company said it completed the sale of 2,332 homes during the six-month period – 4% higher compared with a year ago.
Finally, it has increased its interim dividend by 12.1% to 3.7 pence.
Despite the positive figures, uncertainty regarding the economy and the Government’s spending cuts is expected to impact negatively on the housing market.
Mortgage approvals and house sales continue to fall and experts believe the market will remain subdued throughout 2011 as a result.