(Recasts, adds CEO quotes, detail)
LONDON Oct 18 British housebuilder Bellway
expects some of its suppliers to seek price rises after
the Brexit-induced fall in the pound, echoing consumer goods
group Unilever's move to recoup currency losses through higher
Bellway, which on Tuesday posted a better than expected 41
percent jump in full-year profit to 498 million pounds ($620
million, said that suppliers of imported timber have already
suggested they might raise prices following sterling's decline
since Britain's vote to leave the European Union.
"I'm sure we're going to have what we would call some sort
of Unilever moments with some of our suppliers," Chief Executive
Ted Ayres told Reuters.
"The only people who have mooted price increases are
structural timber (companies) and that's obviously because of
the exchange rate and they're mooting price increases of
probably up to 10 percent."
Ayres added that U.S. dollar-denominated timber represents
only a small part of Bellway's costs.
Britain's biggest retailer, Tesco settled a pricing
row with Unilever last week after halting online sales
of goods produced by the Anglo-Dutch giant in a dispute caused
by the pound's plunge since the Brexit vote.
About 70 percent of Bellway's materials are sourced from
within Britain, with around 20 percent from Europe, Ayres said.
He also said that demand for new homes has remained strong
since the June referendum, echoing a number of recent surveys
suggesting that demand has picked up in recent weeks.
"Post-Brexit, in those early weeks there was a bit of
insecurity in the market place, but since then it has regained
(Reporting by Costas Pitas; Editing by David Goodman)