logo
Plus   Neg
Share
Email

Bellway 10-Month Home Sales, Order Book Down; Guidance Remains Suspended

Bellway PLC (BWY.L), a residential property developer, reported Tuesday that it completed the sale of 6,721 homes for the ten months from August 1, 2019 to May 31, 2020, down from last year's 7,674 homes. The sale included 708 which completed on or after March 23, 2020 amid Covid-19 pandemic.

In its trading update, the company said its order book remains substantial, with a value of 1.57 billion pounds as of May 31 comprising 6,038 homes, compared to prior year's 1.64 billion pounds comprising 6,312 homes.

Sales activity has remained restrained since initially closing sales centres, with the net reservation rate rapidly declining to an average of 71 homes per week in the ten weeks from March 23 to May 31. In the same period last year, net reservation rate was 231 per week.

The company said it expects year-on-year sales activity to be severely constrained until a time when 'lockdown' restrictions are further lifted.

The company said its construction activity has recommenced on around 230 sites. All remaining sales offices reopened in England on 1 June, following the success of a trial beginning on May 18.

Further, all furloughed employees have remained on full basic pay throughout April and May and Bellway has no current plans to claim grant using the Government's Coronavirus Job Retention Scheme.

Looking ahead, Bellway said, "Given the ongoing uncertainty, financial guidance remains suspended, however, the resumption of build programmes should enable Bellway to slowly increase the number of completions throughout the late summer and autumn months."

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Home Depot, Inc. is set to open three new distribution centers in Georgia over the next 18 months, which is expected to create an additional 1,000 new jobs in Greater Atlanta, including full-time and part-time positions. The home improvement retailer has already created more than 5,000 new jobs in Georgia over the last five years. Shares of BMW AG were losing around 5 percent in German trading after the luxury car maker reported Wednesday a loss in its second quarter, compared to prior year's profit as demand was hit hard by coronavirus pandemic. Looking ahead, the company said it is cautiously optimistic for second half of the year, and reaffirmed fiscal 2020 outlook. Billionaire Richard Branson's Virgin Atlantic has filed for Chapter 15 bankruptcy protection in the United States after being hit hard by travel restrictions due to the coronavirus pandemic. The process is part of the British airline's restructuring plan as it is seeking a 1.2 billion pounds rescue deal in the U.K. The airline also filed a proceeding in the high court in London for its restructuri
RELATED NEWS
Follow RTT