1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

Bellway says demand strong despite Brexit vote but warns on supplier price rises

Discussion in 'Market News' started by Lily, Oct 18, 2016.

  1. Lily

    Lily Forum Member

    Joined:
    Aug 29, 2015
    Messages:
    7,412
    Likes Received:
    0
    Housebuilding shares climb after better than expected results from Bellway

    Shares in Britain’s housebuilders have been lifted by better than expected results from Bellway.

    The company - which builds around half of its homes in London and the south - reported a 41% jump in full year profits to £498m and said demand remained strong despite the uncertainty after the EU referendum. Chairman John Watson said:

    The long term outlook continues to be positive...Whilst there is some uncertainty following the result of the EU referendum, trading since that date has remained resilient.

    I’m sure we’re going to have what we would call some sort of Unilever moments with some of our suppliers. The only people who have mooted price increases are structural timber [companies] and that’s obviously because of the exchange rate, and they’re mooting price increases of probably up to 10%.

    Bellway’s 2016 results are slightly above our estimates, but at this early stage of the year we are only upgrading 2017 marginally - but think the risk is firmly on the upside if current market conditions persist. Current trading trends have been robust since period end with Bellway selling 9% more houses per week than the equivalent period last year. Whilst economic uncertainty persists, we think the valuation of Bellway (and the wider sector) fails to reflect the strength of support provided by the Help to Buy scheme and the fact Bellway and the wider sector have very strong balance sheets.

    Continue reading...
     

Share This Page