The shares of Bellway (LSE: BWY) added 24p to 1,636p during early-morning trading after the Newcastle-based house builder today released a trading update for the six months to 31 January.
The FTSE 250 member, which employs around 2,000 people from across 15 regional divisions, boasted of a 41% hike in housing revenue, climbing from £487m to £690m for the period.
Other positive highlights from the statement included the completion of 3,245 home sales, which represented a 25% increase on the previous year.
Complementing the greater sales volume was a 13% rise in the average selling price, up by approximately £25,000 per home. However, this was assisted by the sale of “particularly high value London apartments” and a high number of expensive transactions in the south.
The update also revealed Bellway’s £240m investment in land, as well as an agreement on a further 4,700 plots valued at £217m. Net bank debt advanced from £6m to £16m.
The group attributes the trading update’s figures to “continued strength in the UK housing market, supported by… more widespread access to affordable mortgage finance”, which will purportedly continue to “deliver further enhancements in shareholder value”.
Bellway currently has a market cap of £2bn and the group’s previous statement showed earnings at £108m and a net asset value of £1.2bn.
Of course, whether today’s trading update as well as the wider prospects for the housing sector both combine to make Bellway a ‘buy’ right now is something only you can decide.
