Tuesday 11 June 2019 9:03 am

Bellway posts strong spring sales hours after devastating Barking fire


Reporter at City A.M. covering banking, markets and insurance

Reporter at City A.M. covering banking, markets and insurance

Follow Callum

Housebuilder Bellway has posted strong sales growth and said it was on track for an earnings boost just hours after a fire devastated one of its developments.

The FTSE 250 firm reported a 4.7 per cent jump in reservations over the period from 1 February to 2 June – to 244 per week.

Read more: Persimmon and Bellway homes found to have significant fire safety issues

The developer also said it had acquired 10,620 “financially attractive” plots of land – an increase on the previous year – to keep it course to meet next year’s growth targets.

It added that customer confidence was “resilient” despite ongoing political uncertainty and that the cancellation rate since 1 August had dropped 13 per cent in March to 12 per cent at the beginning of June.

Chief executive Jason Honeyman said: “Going forward, we are on track to deliver further earnings growth this financial year and beyond that, our strong balance sheet ensures that Bellway is in a good position to continue its long term strategy.”

The trading update comes after a fire devastated a Bellway development in Barking yesterday, destroying 20 flats with wooden balconies and damaging a further 10.

Residents had previously raised concerns with the company over potential fire hazards, according to reports.

Read more: Bellway set for revenue bump despite Brexit jitters

Bellway said it was a “very serious issue” and it was working to establish what happened.

A company spokesman added Bellway was “relieved that the fire protection measures… ensured that occupants were safely evacuated.”

Share