LONDON (dpa-AFX) - Bellway plc (BWY.L) Thursday reported that it completed the sale of 6,506 homes in the period from August 1, 2019 to April 26, 2020, slightly lower than last year's 6,596 homes. This includes 493 homes that was completed on or after March 23, amid Covid -19.
In its trading update, the company said its order book remains substantial, with a value of 1.57 billion pounds with 5,976 plots as of April 26, down from 1.66 billion pounds with 6,334 plots a year ago.
The company on March 23 took the decision to cease construction activity, close sales centres, and transition to home working as soon as practicably possible.
Despite sales centres closures, the company continued to achieve a modest number of weekly reservations through telephone.
The cancellation rate, measured as a percentage of the reduced reservation rate over the same period, was 27%.
Going ahead, the company expects sales activity to remain severely restrained until it can re-open sales outlets.
The company expects to resume some construction work, initially on a phased basis, from May 4.
Further, the Board has taken several actions to ensure the continued long-term resilience amid Covid-19. The Board of Directors has volunteered a temporary 20% reduction in basic salary and fees, effective from April 1 until May 31.
The company said, 'Given the continued uncertainty, financial guidance remains suspended, however, measures taken by the Group to date will ensure that Bellway remains resilient. Our approach, together with the Group's upfront investment in land and work in progress, should enable Bellway to emerge positively from this unprecedented crisis.'
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