Categorized | International

Higher Home Prices Make for Increased Profit Margin in the UK

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The real estate market has been good for Bellway Pic, a UK homebuilder that specializes in first-time buyers. The company is reporting an increased profit margin, which is largely due in part to higher home prices.

Over the last twelve months, the number of homes that have been completed has risen 7.1 percent, and the average selling price has gone up to one hundred and seventy five thousand pounds, or 7.2 percent. This numbers are very strong for Bellway Pic.

These results are a great indication of long-term success for the company, and thus, they plan to continue their same target goals into the next year. Bellway is looking to see more growth, and improve the average selling prices even more.

The increase in the number of homes and the average selling price over this past year has resulted in an increase in profit margin, up almost two percent. The second-half margin nearly reached ten percent, which is a three percent increase.

With its great success over the past year, the company is taking steps to build upon their profits even further. Bellway has purchased a significant amount of land.

In order to ensure that the current success continues into the future, Bellway has already determined a succession plan for their top executives. Alistair Leitch, the company’s finance director has plans to retire in the next year, and thus, already has his successor picked out. The company’s CEO, John Watson plans to retire in 2014, and is currently searching for his successor.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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