UK housebuilder Bellway set for new profits record

British housebuilder Bellway today said it expected to achieve its highest-ever profits in 2004 despite a slowdown in house price growth.

The Newcastle-based group said in a trading update that it had already secured more than 80% of its expected sales target for the year to July 31.

It said the upbeat performance would pave the way for its ninth year of record profits in a row.

Bellway said the UK housing market had returned to “more normal levels of activity” since last summer.

But the group, which operates across the UK, said its wide geographical coverage allowed it to adjust to changing market conditions.

It said it had one of the lowest average selling prices in the industry - £161,400 (€230,000) at July 31 last year – and would continue to supply the lower to middle market.

“The board is confident that Bellway’s profit for the current financial year should be a record for the ninth year in succession,” chairman Howard Dawe said in a trading update at the group’s annual meeting.

Bellway said in October that its annual profits in 2003/4 had risen by 21.4% to £205.5m (€293m).

Analysts expect the group to turn in annual pre-tax profits of between £205.9m (€293.8m) and £220m (€313.9m) in 2004/5.

It said it would release further details in a trading update on February 3, ahead of its interim results announcement on April 19.