Trading update:
At 2800p perhaps things are not so bad after all, although the dividend has been cut.
https://www.londonstockexchange.com/new ... e/16508010Highlights
§ Stronger trading through the spring selling season, with improved affordability supporting an increase in customer confidence and reservation rates compared to the first half of the financial year.
§ The private reservation rate per outlet per week of 0.62 increased by 6.9% compared to the prior year equivalent (2023 - 0.58). This was delivered from a higher number of outlets, which averaged 245 in the period (2023 - 239).
§ Overall, headline pricing has remained firm, and incentives continue to be used on a targeted basis.
§ Reflecting the improvement in trading and growth in outlet numbers, the forward order book has increased from the level of 4,411 homes at the start of the current financial year. The forward order book at 2 June 2024 comprised 5,346 homes (4 June 2023 - 6,172 homes).
§ In line with previous guidance, the Group is on track to deliver full year volume output of around 7,500 homes (31 July 2023 - 10,945 homes) and we continue to expect a reduction in the underlying operating margin3 of at least 600 basis points from the level in the prior year (31 July 2023 - 16.0%).
§ The overall average selling price is now anticipated to be around £305,000 (31 July 2023 - £310,306). The increase from the previous guidance of £295,000 is mainly due to changes in product mix.
§ The Group is now fully sold for the current financial year and given our strong outlet opening programme and healthy forward order book, Bellway is well-positioned to return to growth in financial year 2025.
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I cut back a lot on the sudden increase associated with the Redrow Bid in February clearing the rest today, though still trading below book - so I have tried to leave something for the next guy, and would buy again on an adequate margin of safety. Redrow would probably have been a better call with 20-20 hindsight glasses on, but this was quite ok especially including the dividends.
More value ideas welcome.
csh