Housebuilder reports sales down 38% as average selling price of homes falls to £174,800

Bellway has announced its interim results, revealing a fall in volume and average selling price of its homes for the six months ended 31 January 2009, with turnover also down strongly.

Completed sales of homes totalled 2,014 homes, 38% less than the 3,252 sold in in 2008, with the average price around £156,100, down 11% from £174,800 in 2008.

Total group turnover was £320.2m, compared with £581.5m - a fall of 45%. Profit before tax and exceptional charges was £17.7m, compared with £96.9m in the same period last year.

Chairman Howard Dave said: “Bellway suffered a fall in volume and average selling price for the six months, producing an operating margin of 9.2% which the board believes is a creditable performance, given current conditions.”

Dave concluded that the board would continue its programme of reducing land expenditure and work in progress, “but not to the detriment of any opportunities that may present themselves”.