Bellway on target for 10% full year volume growth

Housebuilder Bellway reported strong growth in first half housing completions and said it remains on target to deliver a 10% rise in full year volumes.

In a trading update for the six months to the end of January, it said housing completions were up 11.6% from 2015 to 4,188.

Meanwhile, the average selling price rose 17% to a record £257,000, mainly thanks to the completion of a number of high value London apartments, and a smaller proportion of lower value social housing completions.

Bellway said the average selling price for the full financial year is expected to show a 10% increase, in line with previous guidance, as ongoing investment in higher value locations throughout the country provides a boost.

The housebuilder said its strong trading performance should lead to a rise in housing revenue of over 30% in the half year, which should exceed £1.08bn, compared with £823.4m in 2015.

Chief Executive Ted Ayres said: “We have achieved a strong performance for the half year to 31 January 2016, delivering a further increase in both volume and average selling price, which should result in a substantial rise in earnings.

“We have made a significant investment in land at attractive rates of return to secure future growth and this, together with the positive market conditions and government support for new housing, should lead to further value creation for our shareholders.”

The group said it ended the period with a strong order book of 4,434 homes, up from 4,213 the previous year, with a value of £1.03bn, up 5.3%.

Bellway said it was on track to report 10% growth in volume this financial year, supported by positive government initiatives to raise national housing output.

“The strategy of ongoing volume growth, together with a focus on return on capital employed, is continuing to deliver substantial value for shareholders,” it said.