Bellway has offered some encouragement to the beleaguered housebuilding sector by revealing that reservations have been higher than expectations in the wake of the government's comprehensive spending review. Reservations before then were lower, however, as potential buyers held back
Even so, the group currently has 3,614 sales secured for the current year, up from 3,486 in 2009. Average selling prices are also higher, up 8.4 per cent at £167,600; although much of this is accounted for by a change in the product mix. Overall, Bellway reckons that unit completions for the six months to the end of January will be similar to the previous year, but profits are expected to rise by 20 per cent. The outcome for the full year will depend largely on the level of consumer confidence during next spring's selling season.
What we said: Buy
When: 17/09/10
Price: 540p
Performance to date: +10%
