Housebuilder announces 拢4m fall in pre-tax profit, while turnover rises slightly to 拢581.5m

John Watson, chief executive of Bellway, has said housebuilders need to improve the way they handle their supply chains in the present downturn.

Announcing flat results for the six months ended 31 December 2007, he said more partnering was needed in a 鈥渢ough鈥� market.

He said: 鈥淗ousebuilders have never been that sophisticated in their supply-chain management.鈥�

In January, Taylor Wimpey sparked a row with subcontractors over the imposition of discounts.

Turnover for the half-year was up slightly from 拢576.5m to 拢581.5m, while pre-tax profit fell by 拢4m to 拢96.9m.

We鈥檙e right in the teeth of it at the moment. It鈥檚 a tough market out there

John Watson, Bellway

Reservations between 1 August and 17 March were 9% down on last year but, taking social housing out of the equation, the figure was 20%. Sales conversion rates were also down 9%.

Watson said the group鈥檚 forward selling had buoyed the figures this time round but warned that completions would be down by between 5% and 10% on last year鈥檚 figure of 7,638.

He said: We鈥檙e right in the teeth of it at the moment. It鈥檚 a tough market out there.鈥�

Watson refused to comment on statements made by other housebuilders in recent weeks including Barratt鈥檚 upbeat assessment.

Trading statements: spot the odd one out 鈥�

Taylor Wimpey 鈥淲e continue to anticipate a more difficult trading environment during 2008鈥�

Persimmon 鈥淰isitor levels have improved each week but conversion-to-sales ratios have remained challenging鈥�

Redrow 鈥淭he figures reflect a clearly challenging market鈥�

Barratt 鈥淭he new calendar year has started well. Reservation levels continue to improve and we remain optimistic that this will continue鈥�

Topics