Bellway’s profits rise

The Newcastle-based company said that profit before tax for the six months to the end of January rose to £59.9m from £40.6m in the same period in 2011. Revenue rose 9.6 per cent to £502.5m.

Bellway said it had sold 2,597 homes over the period, up 5.8 per cent from the previous year, while the average selling price increased to £187,426 from £182,753 pounds. It also raised its interim dividend by 50 per cent to 9p per share.

“The group has delivered another strong set of results, having achieved further growth in volume, average selling price and operating margin and this has contributed to an improvement in return on capital employed,” Chairman John Watson said.

Bellway said reservations for the six weeks since February 1 had been boosted by an increase in visitor numbers to sites and that it has so far has reserved or legally completed 94 per cent of its current full year volume target.

Housebuilders such as Barratt Developments and York-based Persimmon have in recent weeks said they were optimistic that the housing sector was on a path to recovery.

Most have defied a sluggish market to post robust profits by buying land cheaply during the recession, and focusing on the economically-stronger south of England. They were given a further boost last week after Chancellor George Osborne unveiled a scheme to help struggling buyers by providing and guaranteeing loans.

Bellway said it welcomed the measures and that it was hopeful that they would make it easier for buyers to access mortgages.