Bellway in ‘robust position’ despite Covid-19 pandemic

Bellway in 'robust position' despite Covid-19 pandemic

Housebuilder Bellway is in a “robust position” in spite of the Covid-19 pandemic, according to its 2020 results.

The housebuilder, which has a number of projects underway in Scotland, said there is a “strong underlying demand for new homes”, with a 6% increase in the reservation rate to 210 per week, up from 199 per week in the previous year.

The forward sales position is “substantial”, with an order book comprising 6,186 homes and a value of £1.8 billion, up from 5,770 homes worth £1.5 billion in the previous year.

Housing completions for the full year to 31 July 2021 are now expected to increase by around 25%.

Bellway also has a strong balance sheet, with net cash of £242.9 million and a substantial capacity to invest further in land. Land creditors remain low, at around £295 million.

Chief executive Jason Honeyman said: “Bellway’s priority remains the health, safety and wellbeing of our colleagues and contractors, whose collective efforts are enabling the Group to proceed responsibly along the road to recovery.

“Bellway is in a robust position and notwithstanding the recent widespread ‘lockdown’ restrictions throughout the country, sales demand is encouraging, and the order book is strong.

“We have substantial cash resources, considerable ability to continue investing in land and with our solid operational structure, we are determined to return the Group to its strategy of delivering long-term and sustainable growth.”

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