0823 GMT - U.K. housebuilder Bellway appears to be in the early stages of a recovery, Quilter Cheviot analyst Oli Creasey says in a note. Although its house prices rose around 0.5%, this is a little behind some peers including Persimmon which reported 5% growth, Creasey says. Bellway expects operating margins to improve modestly to 11% from 10%. Though positive, it represents the scale of the challenge the company and other housebuilders face, Creasey says. Its operating margin in 2022 was around 18% so there is still a long way to go before it, or the industry, fully recovers, he says. "The mortgage market and wider economic conditions continue to have an impact on customer demand and are likely to be a headwind for Bellway for some time yet," he says. (anthony.orunagoriainoff@dowjones.com)
(END) Dow Jones Newswires
February 11, 2025 03:23 ET (08:23 GMT)
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