Bellway profit slumps, but beats view

Tue 13 Oct, 2009 06:34

LONDON (Reuters) - Housebuilder Bellway (BWY.L) posted an 82 percent fall in pretax profit, beating market expectations, and said reduced debt left it well positioned should the housing market mount a robust recovery.

The company, which sold 4,380 homes in the year to end-July, reported a pretax profit of 29.8 million pounds, down from 165.7 million pounds a year earlier, on turnover of 683.8 million pounds, down from 1.15 billion pounds.

Analysts were expecting the group to post pretax profit of 26.8 million pounds and revenue of 668.0 million pounds, according to Thomson Reuters I/B/E/S.

Net debt stood at 36.8 million pounds, giving the group gearing of 3.8 percent after it reduced borrowing by 180.9 million pounds.

Bellway, the only national builder to currently pay a dividend, kept its final payout steady at 6.0 pence a share.

It said reservations since the beginning of August were 58 percent ahead of a year ago, and it would open new outlets and buy land, mainly in the south of England.

"With national coverage, a robust balance sheet and low gearing, the board believes Bellway is well positioned, " the firm said.

(Reporting by Paul Sandle; Editing by Matt Scuffham)