Bellway plc (LON: BWY) said on Tuesday that house-and-flat sales in the fiscal first half jumped to a record high but said that the same momentum is unlikely to sustain in H2.
Bellway shares were reported about 4% up in premarket trading on Tuesday but lost close to 1% on market open. The stock is now exchanging hands at a per-share price of £31.15 versus a low of £18.79 per share in March 2020 when the COVID-19 wreaked havoc on Britain’s housing market. The price action should come in handy if you are interested in investing in the stock market.
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Bellway values its net cash at £346 million at the end of H1
In the six months that concluded in January, Bellway said that it completed deals on 5,656 homes that represents a 6.3% growth on a year over year basis. At £1.72 billion, its revenue in the first half posted an over 12% annualised growth. Average sales price during the period stood at £303,200 or 5.8% higher than last year.
Bellway valued its net cash at £346 million at the end of its fiscal first half. The British firm resumed its dividend payments in October 2020 as the housing market started to show signs of recovery.
For the full financial year, however, the residential property developer expects prices to return to roughly £293 thousand. Private house orders, as per Bellway plc, jumped 1.3% in H1, pushing the total value up to £1.63 billion.
The Newcastle upon Tyne-based company also said on Tuesday that its house sales are likely to print near 9,800 in the ongoing financial year. Bellway expects its underlying profit margins to see an about 2 percentage points increase this year.
Chief Executive Jason Honeyman’s comments on Tuesday
CEO Jason Honeyman commented on the financial update on Tuesday and said:
“Despite the escalation of lockdown measures in the new calendar year, sales rates have since recovered to a more normalised level, boosted by the effective transition to the new Help-to-Buy scheme, which has been well received by our customers.”
In separate news from Europe, Blacklane (German chauffeur service) bought a majority stake in Jaguar Land Rover-backed Havn on Tuesday.
Bellway plc performed fairly downbeat in the stock market last year with an annual decline of roughly 25%. At the time of writing, it is valued at £3.84 billion and has a price to earnings ratio of 19.95.