Record results for Bellway - NEWSBRIEF

Bellway lifted its operating margin to 14.5 per cent, an improvement which helped the housebuilder achieve a record annual pre-tax profit of £61 million.

Alan Robson, Bellway's finance director, said the year (12 months to 31 July 1998) had been one of "achievement and continued success." Turnover was ahead at £450 million (£400 million).

Robson added his criticism to those of other housebuilders who have hit out at the growing delays in the granting of planning permission.

"Our figures would have been better if it were not for the planning problems. As a result of these, growth in completions was 3 per cent, which was unusually poor," he said.

Bellway completed 5,200 properties (5,000). The housebuilder plans to hit the 6,000 mark by July 2000.

The average selling price of properties during the past year rose by 9 per cent, from £77,000 to £84,000, mainly as a result of increased selling prices in and around London.

Bellway's South-east division enjoyed an average selling price of £141,000 while the North London equivalent figure stood at £121,000.

Bellway's land stock with planning permission at the end of the financial year was 16,300 plots, a growth of 2,300 plots during the year.

Land purchases of note were Grange Park, Northampton, for around 1,000 homes; Herrison Hospital, Dorchester, for over 300 properties; and Limehouse Basin in East London for 260 homes.

Since the year-end, Bellway has acquired 41ha of land at Barking, Essex, which includes nearly 1.6km of River Thames frontage.

For the past two years, Bellway has achieved the Government's stated target of achieving 60 per cent of developments on brownfield sites.

Bellway shares are deemed a 'buy' by analysts with two stockbroking firms, Charterhouse Tilney and Merrill Lynch. Jonathan Timms, at Charterhouse, said the current low price is quite irrational. Blue Circle to sell Armitage shanks

Blue Circle, the building materials group, is to sell Armitage Shanks, its bathrooms division, after receiving several approaches from potential bidders in recent months. The business will be auctioned by Lazard Brothers, the merchant bank, and is expected to fetch between £150-200 million.

changes at Amey

Mike Pilbeam has joined Amey as a main board director. He will also be md of Amey's Process Outsourcing division. Other changes at Amey are: Charles Mogg becomes director of corporate development; Jon Zieve is the new business development director; and Demetrios Hatzis moves to md of Amey Ventures which handles the group's approach to PFI and PPP. Hatzis was involved with PFI while with Miller.

WML group jointly acquires RCH

WML Group, the AIM-listed property services group, is jointly acquiring RC (Holdings), Britain's second largest manager of retirement care homes. RCH is a private company, based in Borehamwood, Herts, and manages 12,000 retirement care properties on 300 estates throughout the UK. The deal will bring the value of property under WML's management to £1.3 billion.

Parnaby joins Jarvis

Jarvis has appointed Dr John Parnaby as a non-executive director. Dr Parnaby was group director of Lucas Varity and is a past president of the Institution of Electrical Engineers.

New board member for Severfield-Reeve

Keith Elliott, who retired recently after 32 years with Bechtel, is joining the board of structural steelwork group Severfield-Reeve. Elliott had held senior positions in Bechtel's civil, power, defence, petroleum and chemicals businesses in the UK, Europe, Middle East and North America.

Wolseley's share price hikes 10 per cent

Builders' and plumbers' merchant Wolseley saw its share price jump 10 per cent on news that its pre-tax profit in the 12 months to 31 July 1998 was £280 million, up from £260 million the previous year. Chief executive John Young said American operations were now "back on track." Young has earmarked £200 million for acquisitions.