Bellway’s strong order book to drive earnings growth

Newcastle-based house building giant Bellway on Tuesday published a trading update for the period from February 1 to June 2, saying it has a strong forward order book, with the number of plots rising by 2.7% to 6,312 homes.

The firm said the order book “ensures that Bellway is well placed to deliver further earnings growth this financial year, in line with the board’s expectations.”

Bellway reported strong sales demand in the period, with a 4.7% increase in the reservation rate to 244 per week.

In its outlook, Bellway said: “The value of the order book is modestly lower at £1,643 million (2018 – £1,703 million), a reflection of the planned growth in lower value social completions this year, with this being in accordance with previous guidance.”

Bellway CEO Jason Honeyman said: “This has been another successful trading period for the group, during which we further disciplined investment in order to grow the number of sales outlets and last year’s strong trading performance.”

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