Bellway speeds up building and buys more land

Bellway is buying land again and looking to accelerate work on stalled schemes as the housebuilder flagged a turning point in the market in an upbeat trading statement today.

The firm also announced a share placing to raise extra funds for a land-buying spree.

The firm said: "We are now looking to selectively increase work in progress spend on existing developments, where stock levels have fallen, as well as increasing the number of new outlets.

"In addition, in recent weeks the group has been successful in contracting to acquire land, predominantly in our southern divisions, at prices the board believes will deliver attractive margins.

"We will continue to invest selectively to increase our land bank as attractive opportunities become available provided, of course, that the market remains stable."

During the year to July 31 Bellway saw sales fall to 4,380 from 6,556 the previous year at an average sale price of £154,000 down from £169,729.

The firm said the market has been "extremely difficult" since spring 2008 with the north and midlands hardest hit

Cash generated has exceeded the board's target of reducing debt by £100m from £218m at 31 July 2008, with net bank debt now standing at £37m.

The order book at 31 July of reservations for future completion stands at £368m (2008 - £370m) and in unit terms is equivalent to approximately 58% of the anticipated outcome for the year ending 31 July 2010.

Bellway will announce its preliminary results on Tuesday 13 October 2009.