Bellway sales grow by 9%

Housebuilder Bellway has reported an increase in sales of 9% between 1 February 2011 and 31 May 2011 on the comparative period last year.

The company achieved a sales rate of 111 units per week, with an average selling price of £182,000, an increase of 4% compared to last year.

In an interim management statement, it explained this growth as resulting from “continuing changes in product mix, combined with a greater contribution of higher value units from divisions in and around London, where demand remains strongest”.

Bellway also reported an increase in net debt to £57m as of 31 May, a fact that it attributed to £220m spent on land and land creditors in the year to date and an increase in the value of work in progress.

The announcement from the company said: “Constraints in relation to mortgage supply, combined with wider economic concerns, continue to pose challenges to the sector. Nevertheless, the Board believes that Bellway is well positioned to continue delivering both operating margin and volume growth.”