Bellway profits hit by slowdown

Housebuilder Bellway has reported a 30% drop in annual profits and says orders are down by almost a half.

The Newcastle-based firm said profits before one-off items were £165.7m, down from £234.8m a year earlier, while orders were 49% lower at £342m.

However, once a £130.9m write-down in the value of its land stocks is taken into account, profits fell to £34.8m.

Bellway said the deterioration of the housing market and availability of mortgages had been "unprecedented".

It said that it planned to continue saving cash and cutting costs until conditions improved.

"In its long experience, the board has never witnessed such a swift change in the housing market as has been seen in the last 12 months," said chairman Howard Dawe.

"The board has a clear strategy, aimed primarily at conserving cash and reducing the cost base... so that growth may commence when the market returns to more normal conditions."

Job cuts

Bellway sold 6,556 houses during the year to 31 July - down 14% from the previous year. The average sale price slipped from £173,300 to £169,700.

The company has cut its workforce by 35% this year to cope with the housing market slowdown.

Rival housebuilders such as Barratt, Bovis Homes and Redrow have also announced thousands of job losses as the downturn hurts their businesses.

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