HOUSEBUILDER Bellway reported a £36.6m loss for the year to July 31, after a £66.3m exceptional charge from land value and work in progress writedowns.

But stockbrokers still raised their recommendation for shares from hold to buy on the back of “better than expected” results.

Liverpool broker Panmure Gordon described the performance as “relatively solid”, adding: “In our opinion, Bellway is a very well run company which is in a strong financial position. This leaves it well-positioned to take advantage of current market opportunities.”

Bellway chairman Howard Dawe revealed a difficult year after sales fell from £1.15bn to £683.8m, sales of completed homes dropped from 6,556 to 4,380 and average prices slipped from £169,729 to £154,005.

However, a £368m order book – 58% of this year’s planned output – compares with £370m in 2008.

Borrowings have been drastically reduced from £217.7m in 2008 to £36.8m and reservations since the beginning of August, although incentive-led, are 58% ahead compared with the same period 12 months ago.

Mr Dawe said the group was also well placed financially, after raising £43.7m in a share placing this August.

He said since the placing the group has emerged from its “partial hibernation” in good stead, adding: “This enhances the group’s balance sheet and puts Bellway in an even stronger position to expand as and when the market shows tangible signs of recovery.”

North East-based Bellway has a regional base in Hunts Cross and since the downturn hit the housing market has established close working relationships with several housing associations across Merseyside in a bid to stimulate sales.

Projects under construction in the region include Canterbury Gardens in Fazakerley, Cressington Grange in Garston Way and Holly Court in Garston, Fairfield Park in Wavertree and a scheme in Hunts Cross Village.