LONDON (dpa-AFX) - Bellway PLC (BWY.L), a residential property developer, reported Tuesday that it recorded strong sales demand in the period from February 1 to June 2 with higher reservation rates. Looking ahead, Bellway said it is well placed to meet the Board's expectations with regards to earnings growth in fiscal year.
In its trading update for the four months, the company said the average reservation rate increased 4.7 percent to 244 per week from 233 per week in the same period last year. This was achieved from an average of 272 outlets, compared to 251 outlets a year ago.
The company has contracted to acquire some 10,620 plots since August 1, 2018, at an anticipated gross margin of around 24 percent. Further, there are heads of terms agreed and solicitors instructed, to purchase a further 7,500 plots.
Despite the ongoing political uncertainty, the cancellation rate since August 1 has moderated to 12 percent.
The company's forward order book grew 2.7 percent to 6,312 homes from 6,144 homes last year, with 68 percent of these plots contracted.
The value of the order book is modestly lower at 1.64 billion pounds from 1.70 billion pounds last year.
Copyright RTT News/dpa-AFX