Bellway reports encouraging start to 2011

| March 30, 2011
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 A?24 million for the six month period to the end of January – compared with A?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 Governmenta��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.

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