LONDON (dpa-AFX) - Home builder Bellway Plc (BWY.L) reported Friday weak housing revenue in its first half, reflecting lower completions and pricing.
In its trading update for the six months ended January 31, the company reported housing revenue of over 1.25 billion pounds, down from 1.80 billion pounds last year, and in line with the Board's expectations.
Total housing completions were 4,092 homes, down 28.1 percent from prior year's 5,695 homes. Average selling price declined over 2 percent to 309,300 pounds from 316,929 pounds a year ago.
The private reservation rate increased 15.4 percent from last year to 105 per week, representing a private reservation rate per outlet per week of 0.43, up from 0.38 a year earlier. The overall reservation rate rose slightly to 140 per week from 138 per week last year.
The forward order book as of January 31 was comprised 3,970 homes with a value of 1.01 billion pounds, compared to last year's 5,108 homes with a value of 1.39 billion pounds.
Looking ahead, the company said it is on track to deliver full year volume output of around 7,500 homes, down from last year's 10,945 homes. If market conditions remain stable and recent reservation rates are sustained throughout the spring selling season, we are well-placed to build the order book through the second half which will serve as a platform for a return to growth from financial year 2025.
It is well-positioned to increase the order book by July 31, provided market conditions remain stable. The company projects volume recovery from financial year 2025.
Jason Honeyman, Group Chief Executive, said, 'Bellway has delivered another resilient performance in a period of challenging trading conditions. While the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates through the first half has eased affordability constraints and we are encouraged by the seasonal pick-up in customer leads and an improvement in reservations since the start of the new calendar year.'
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