Bellway Posts Loss for First Half
www.bellway.co.uk
Yesterday, Bellway, the British homebuilder, posted a net loss of £35 million for the first half of their financial year, because the company reduced the value of their land and homes inventory in order to reflect a down market. For the half year until March 31st, the net loss of the company is in comparison to a £68 million profit from the year before.
The revenue of Bellway declined to £320.2 million, which is down by 45%, due to falls of the average selling price to £156,000 from £174,800, while number of sales decreased as well. They took an exceptional expense of £66.3 million, which according to them reflected a decline in the price of homes by 25% since the peak from August of 2007. Bellway also cut their interim dividend from 18.1 pence per share the year before to only 3 pence, which is 83% cut.
Sales in the homebuilder were down by 14% in the southern part of Britain, while it fell by 59% in the northern part. The company said that cancellations were made at the highest levels they had ever seen, amounting to about 26%.
H.C. Dawe, the Chairman of Bellway, said that nearly all private reservations since the summer had been achieved through a number of incentives, including part exchange and the shared equity scheme of the company. The combination of cautious valuers on their lenders’ behalf, high deposit requirements, and the low level of lending for mortgages hasn’t boosted the confidence of consumers, he added.
To find out more, go to www.bellway.co.uk
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