Bellway forecasts tough times

Mar 27 2008 by Peter McCusker, The Journal

IN the Regional Portfolio, local house- builder Bellway reported its first-half figures to the market.

The numbers were robust and in line with market expectations. However, the group confirmed that conditions in the housing market remain tough, especially for first-time buyers, as lending conditions have been tightened and larger deposits are required for property purchases.

Chairman Howard Dawe said: “It has been well documented that since the summer of 2007 the economy, and in particular the housing market, has been suffering from the uncertainties experienced in global financial markets.

“Nevertheless, Bellway has produced a good set of results.”

Looking forward, Bellway confirmed that it is positioning itself for when the housing market starts to turn the corner and trading returns to more normal levels..

There was also good news for income investors with Bellway increasing its dividend by 10% to 18.1 pence per share. Bellway’s share price drifted lower over the trading session by 21p to close at 789p.

Elsewhere in the market, sofa company ScS Upholstery released its interim figures to the market. The Sunderland-based retailer confirmed the trading environment is very tough. Nevertheless, the group is confident that trading will be back in the black in the second half of the year as the benefits of suspending the dividend and the expansion programme filter through to the bottom line.

ScS Upholstery’s share price jumped on the announcement, rising by 6.67% or 3p to close the day at 48p.

Anthony Peart Anthony.Peart@Brewin.co.uk