Bellway delivers 'robust' H1 performance

Property developer Bellway said on Thursday that it has delivered a "robust first half performance", with record completions of 5,695 homes and a 1.6% increase in average selling prices to £316,900.

Bellway stated overall reservation rates had reduced by 31.7% to 138 per week, with weaker private demand partially offset by the company's programme of accelerating social homes construction.

However, elevated mortgage rates and the end of help-to-buy had contributed to a 43.8% decrease in the private reservation rate to 91 per week.

The FTSE 250-listed group also said the combination of strong volume output and the decrease in reservation rates had resulted in a lower, but "still sizeable" forward order book, which was made up of 5,108 homes, with a value of £1.38bn.

Chief executive Jason Honeyman said: "Bellway has delivered another strong performance, with our teams and supply chain partners demonstrating their ongoing commitment to provide high quality homes and service for our customers.

"Looking ahead, Bellway's experienced team and operational strength will enable us to navigate through changing market conditions. The group has a robust balance sheet, with substantial cash resources and it is well-placed to invest, when compelling market opportunities arise, to continue to deliver returns for shareholders in the future."

As of 0820 GMT, Bellway shares were up 1.37% at 2,211.0p.

Reporting by Iain Gilbert at Sharecast.com