Shares in Bellway fall 2.4pc despite sale growth

Bellway share price was down in early trading despite reports that the group sold 600 more homes than last year.

The property developer is on track to build 10,000 homes over the year for the first time in the group’s history.

Every home is expected to sell for over £280,000 leading to a profit margin of 22 percent.

The executive chairman, John Watson, said: “This has been another successful trading period for Bellway, in which the demand for new build homes remained strong, enabling the group to continue delivering its long-term and sustainable strategy of increasing shareholder value through responsible volume growth.”

“We have retained our status as a five-star housebuilder and reservations are ahead of the same period in the previous financial year.”

“For the full year, Bellway is on target to complete the sale of in excess of 10,000 homes for the first time in its history and in doing so, achieve another record year of earnings. Furthermore, we have invested a substantial amount in new land, laying the foundations for further growth, beyond this financial year.”

Analysts at Shore Capital said that the update suggested third-quarter trading was broadly in line with expectations yet margins remained weaker than predicted.

Despite the strong results, shares in Bellway (LON:BWY) were down 2.14 percent at 3,336.40p.