Bellway has announced completed sales of 6,556 homes, a fall of 14.2% from last year’s record level of 7,638.

One of the country’s top four housebuilding companies, Bellway Ltd, has announced completed sales of 6,556 homes, a fall of 14.2% from last year’s record level of 7,638.

With headquarters in the north east of England, the Group reported this week that the average price achieved for these sales was £169,729, down 2.1% from £173,300 in 2007, resulting in its housing turnover reducing by 15.9% from £1,323.7 million to £1,112.7m.

Chairman Howard Dawe said: “The current state of the housing and mortgage markets has been well documented and the speed of the deterioration is unprecedented.

“Operating margins have come under increasing pressure as the market rapidly contracted and, in response to this, more incentives were used. As a consequence, the operating margin, as mentioned in the Trading Update on 14 August, has fallen from 18.7% in 2007 to 16.1%, before any exceptional charge. This has resulted in operating profit falling from £253.1m to £185m.”

The net profit before tax and after exceptional items was £34.8m giving earnings per ordinary share of 23.6p, compared to 146.1p in 2007. Net assets per ordinary share at 31 July 2008 were 871p compared to 903p at 31 July 2007.

Bellway will pay a 6p final dividend on 21 January down from 26.67p, making a total dividend of 24.1p against 43.1p the year before.

Dawe continued: “The Board has a clear strategy, aimed primarily at conserving cash and reducing the cost base, whilst maintaining the essential operational fabric and protecting shareholder value so that growth may commence when the market returns to more normal conditions.”

The company also announced the replacement of Non-Executive Director of 13 years Leo Finn with Mike Toms, a former director of BAA plc.