LONDON (dpa-AFX) - Bellway Plc (BWY.L) issued trading update for the six months ended January 31, 2021, and reported first half volume output, with the completion of 5,656 new homes, an increase of 6.3%, compared to 5,321 homes in 2020.
For the first half, housing revenue rose by over 12% to around £1,715 million from £1,524.8 million last year, in part driven by strong growth in the number of homes sold.
Further, the company noted that it has benefitted from a strong balance sheet and notwithstanding the investment in land, net cash rose to £346 million from £4.6 million a year ago, reflecting the elevated level of completions and the reduction in work-in-progress.
Looking ahead, the company now expects housing completions for the full year to July 31, 2021 to increase to around 9,800 homes versus 7,522 last year, and expects the underlying operating margin for the full year to improve by at least 200 basis points versus 14.5% reported in the previous year.
Jason Honeyman, Chief Executive, said, '...Looking forward, we have a sizeable forward order book, which provides a solid platform for the second half of the financial year and beyond. In addition, our balance sheet is strong, with significant cash resource and this provides the Group with the necessary resilience and flexibility to respond positively to the evolving economic environment.'
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