Bellway operating margins hit double figures

Aaron Morby 10 years ago
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House builder Bellway’s shift south helped to lift pre-tax profits 69% in the first half of the year to £41m.

Operating margin rose sharply to 10.1%, due to the greater proportion of homes sold on higher margin land acquired since the economic downturn.

Chairman Howard Dawe said: “There remains an underlying demand for our homes the group therefore intends to continue its three-pronged strategy of delivering volume, selling price and operating margin growth”.

Completions rose 5% to 2,455 homes. Bellway completed the sale of 2,048, private homes during the period, up 14.8% on the prior year, together with a further 407 (2011 – 548) sales to housing associations.

On-going changes in mix delivered an improvement in the average selling price, which in the north rose by 4.3% to £151,468, due to building more traditional two storey family housing.

Average selling prices in the south jumped 9.8% increase to £211,378, driven by strong demand within the Greater London boroughs.

The rise in prices and completions lifted turnover 12% to £459m.

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