Bellway shows profit increase

In its interim statement housebuilder Bellway has reported a rise in pre- tax profit to £19m compared with a loss of £48m in the same period last year.

The main highlights were:

· Completed sales of 2,247 homes (2009 - 2,014)

· Average price achieved £155,871 (2009 - £156,146)

· Total Group turnover of £360.8m (2009 - £320.2m)

· Profit/(loss) before taxation £19.0m (2009 - loss £48.6m)

· Interim dividend 3.3p (2009 - 3.0p)

· Net cash of £60.9m

· Net asset value per ordinary share 842p (31 July 2009 - 834p)

· Earnings per share 11.6p (2009 - loss 30.5p)

Chairman Howard Dawe said "Bellway successfully completed the sale of 2,247 homes in the six months ended 31 January 2010, an increase of 11.6%" and "it is encouraging therefore to report an operating margin of 6.1% achieved in the period."

Furthermore "Despite the challenges………the Board has continued its policy of paying dividends and is particularly pleased to increase the interim dividend payment by 10% to 3.3 pence per ordinary share."

He concluded "Bellway is well placed to benefit from a housing market that should gradually improve over time."