Bellway's share price rises as profits smash expectations

 
Kasmira Jefford
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Bellway built 4,200 homes over the first half of the year (Source: Getty)

Bellway shares rose 3.6 per cent in morning trading after the UK housebuilder beat analyst expectations, reporting a near 43 per cent jump in profits to £226.6m in the first half to 31 January.

The family-owned group's better-than-expected profits was largely due to its operating margin, which came in at 21.4 per cent compared with 19.9 per cent the same time last year.

House completions, as guided in February, were up by 11.6 per cent to 4,188 while the average selling price increased by 17.3 per cent to £257,280.

The company has declared interim dividend of 34p per share on the back of the strong results, up 36 per cent on last year, which also cheered investors. Bellway's shares have risen by nearly 30 per cent over the last year thanks to a string of upbeat results.

Bellway Bellway | mobile image

Bellway also hailed a strong start to the second half of the year, with reservations since February up by 37 per cent thanks to the release of new phases on three London developments.

The group added that it has experienced strong customer interest in the new Help to Buy London scheme since its launch, which it said will also provide further support for its London divisions.

Its order book at 13 March stood at 5,048 homes compared with 4,794 homes the same time last year and was worth £1.2bn.

Chairman, John Watson, said: "Bellway's strategy for growth is helping to deliver much needed new homes, whilst delivering sustainable returns for shareholders."

"I am therefore pleased to report another record set of results as the Group takes advantage of the positive market conditions to deliver further volume growth."

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