Bellway – 1167.5p

7 December 2013 – interim trading update

The group has increased completions by 5.8% to 2,597 homes compared to the same period last year, with average selling prices rising by 2.3% to £187,000 over the same period. This is due to the continuing changes in product and geographical mix and the group expects the average selling price to continue to rise.  The operating margin continues to rise due to the increasing proportion of completions from higher margin land, acquired since the downturn. It is expected to exceed 12.5% for the first half (2012: 10.1%). The shares have had a strong run. However, with a low priced land bank, the banking facilities in place to take up further land buying opportunities and resilient demand for housing we believe this could be another good year for Bellway. BUY

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