TIDMBWY
Bellway p.l.c.
Interim Management Statement
15 June 2010
Bellway is today updating the market on its current trading performance by
issuing an Interim Management Statement for the period from 1 February 2010 to
15 June 2010.
In the eighteen weeks under review, we have maintained a sales rate broadly
comparable with the same period last year, at 100 sales per week, from a
similar number of outlets. Cancellation rates have remained stable at around
13%. The average selling price of reservations taken in the period is 10% ahead
when compared with last year as a result of changes in mix, and an increasing
exposure to the southern market. Since the general election, uncertainty
concerning anticipated Government fiscal policy and spending reviews has
resulted in a slight reduction in both site visitor levels and weekly sales
rates.
The original annual sales target of achieving last year's volume is secure and
the Board is confident that legal completions for the year ending 31 July 2010
will exceed those achieved last year by around 200 units. In addition, some
1,800 reservations have now been taken for 2010/11.
As previously indicated, the Board expects to deliver an operating margin in
excess of 6.5% for the full year. Operating margins on current reservations
have improved as a result of a strong focus on cost control and the
commencement of recently acquired sites where gross margins are in excess of
20%.
The Group's land teams continue to be active in the market, especially in the
southern half of the country, albeit using a very disciplined approach with
regard to margin, return on capital and achievable selling prices. To date, GBP
151 million has been unconditionally committed representing 2,475 plots, with
heads of terms or conditional contracts agreed on a further 5,275 plots.
Possible changes surrounding the planning system could pose new challenges to
the business. Nevertheless, with a strong forward order book, net cash in the
bank of GBP55 million and expected future margin improvement, Bellway remains
well positioned to continue to deliver earnings growth.
The Group will announce a trading update for the financial year ending 31 July
2010 on Thursday 5 August.
Certain statements in this announcement are forward-looking statements which
are based on Bellway p.l.c.'s expectations, intentions and projections
regarding its future performance, anticipated events or trends and other
matters that are not historical facts. Such forward-looking statements can be
identified by the fact that they do not relate only to historical or current
facts. Forward-looking statements sometimes use words such as "aim",
"anticipate", "target", "expect", "estimate", "intend", "plan", "goal",
"believe", or other words of similar meaning. These statements are not
guarantees of future performance and are subject to known and unknown risks,
uncertainties and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements.
Given these risks and uncertainties, prospective investors are cautioned not to
place undue reliance on forward-looking statements. Forward-looking statements
speak only as of the date of such statements and, except as required by
applicable law, Bellway p.l.c. undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
JOHN WATSON, CHIEF EXECUTIVE & ALISTAIR LEITCH, FINANCE DIRECTOR FROM 7.30 AM
ONWARDS ON 0191 217 0717
END
(END) Dow Jones Newswires
June 15, 2010 02:00 ET (06:00 GMT)
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