Bellway hit by falling demand.HOUSEBUILDER Bellway yesterday said reservations were 7% lower than a year ago, after the credit crunch Credit Crunch An economic condition whereby investment capital is difficult to obtain. Banks and investors become weary of lending funds to corporations thereby driving up the price of debt products for borrowers. caused nervous consumers to put off house purchases. Bellway, which employs 2,000 staff across 18 regional offices including a major base in south Liverpool, warned the outcome for its financial year to July 31 would depend on conditions during the key spring selling season. The company said in a trading statement: "While the supply side of house building remains constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by planning, product and construction starts, the demand side is now being affected by a lack of consumer confidence and the economy generally." Bellway's strong forward sales forward sales npl → ventas fpl a término position should allow the company to deliver modest growth in sales volumes for the six months to January 31. But since the middle of October - when Bellway reported a 6.4% rise in pre-tax profits to pounds 234.8m - reservations have fallen below last year's leve. |
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