Bellway's share price has climbed three per cent this morning after the company reported a boost in sales due to a "significant" requirement for affordable housing in London.
Bellway increased its housing completions by 6.5 per cent for the six months ending 31 January; volumes reached 4,462, up from 4,188 during the same period last year. The average selling price of Bellway's private properties rose from £279,053 to £291,000.
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The value of Bellway's forward order book grew from £1bn to £1.1bn.
The company invested £380m on land and land creditors, up from £315m last year.
Why it's interesting
Bellway said demand in London remains "firm" due to the "significant requirement for affordable homes" in the capital. So, although the housebuilder is wary of the uncertainty surrounding the UK economy following the Brexit vote, it said it was confident about the future, and will be able to deliver its target of five per cent volume growth for the financial year.
What Bellway said
Ted Ayres, Bellway chief executive, said: "Bellway has delivered another strong half year result, increasing both the number of legal completions and the value of the forward order book.
"Market conditions remain positive and accordingly Bellway is continuing to invest in a controlled manner, both in land and work in progress, in order to achieve further disciplined volume growth, thereby creating additional value for shareholders."
What analysts said
Anthony Codling, analyst at Jefferies International, said: "The first half trading update suggests that trading is in-line with our expectations at the half year and on track to deliver our expectations for the full year.
"The group remains 'mindful' of the uncertainty regarding the UK economic outlook, however, in our view today's statement is a picture of inner calm."