House builder Bellway has reported a 54% increase in reservations during the second half of 2009, compared to the same period the previous year.
At the firm’s AGM today, chairman Howard Dawe said: “I am pleased to report that, since the Interim Management Statement (IMS) on Friday 4 December, reservations have remained ahead relative to the similar period in 2008, resulting in a 54% increase when compared with the same five months ended 31 December 2008.
“Consequently, the Group has now secured 86% of its current 2009/10 sales target with average selling prices slightly ahead of the Board's expectations, providing a good start to the new calendar year.”
However, he added: “With concerns over mortgage availability and unemployment in particular, we await the spring selling season with caution.”
Dawe said that Bellway’s net cash position has further improved since the IMS and at 31 December 2009 stood at £51. He said the house builder “will selectively increase work in progress expenditure where appropriate and continue to pursue new landopportunities, but only at attractive margins.”
A pre-close trading update will be issued on Friday 5 February following the conclusion of the six month trading period ending 31 January 2010.