Bellway significantly increases land purchases
Bellway has spent £355 million on new sites in the last six months following sustained demand in the UK housing market.
The housebuilder’s investment in land north of the border led to 327 homes being sold in six months to January 31.
The company’s activities in Scotland fed into a strong showing by the housebuilder across its seven northern divisions. Bellway built 1,822 homes in the north of the UK over the period - an increase of 23.6 per cent on the same period last year - it said in a trading update yesterday.
The investment comes on the back of a positive six months for the company which saw an increase in sales of 16 per cent in the six months to 31 January on the same period last year with operating margins increasing to 20 per cent compared to 15.6 per cent during this period.
Housing revenue has risen by close to 19 per cent to over £820 during the last six months compared to the same period last year and has seen growth of 24.5 per cent in the value of the forward order book to £975m.
Bellway chief executive Ted Ayres said: “The group’s strategy of delivering volume growth, with a strong focus on return on capital employed has resulted in a further significant rise in profitability.
“With advanced plans to open a 16th division in the second half of the financial year, Bellway is well positioned to deliver further earnings growth.”