Bellway to build on record housing profit

The housebuilder Bellway said yesterday it would concentrate on building middle-market homes to avoid the expected dip in the property market and maintain stable growth.

The company is confident its move away from the high-priced London investor market, which is expected to weaken this year, will enable Bellway to continue producing strong financial results.

Bellway announced record interim pre-tax profits of £57m, an increase of 46 per cent on last year. It also said 92 per cent of its annual target had already been completed, contracted or reserved.

John Watson, the chief executive, said the solid results were largely due to the growth of the company's southern division. He said: "These profits can be attributed to an increase in the number of middle-market homes being sold and that they are being sold at a higher price."

The average selling price of a Bellway home has leapt from £113,600 to £144,000. Mr Watson said he was confident the wide geographical spread of its developments and diverse product range would continue to encourage growth in sales. Shareholders will receive a higher dividend this year of 6.2p a share, compared with 4.55p last year.

Stephen Rawlinson of Arbuthnot Securities said he would raise his forecast for Bellway on the basis of the results. Bellway shares closed up 24p at 545.5p.