Bellway beats forecasts and pledges 10% volume growth 2015

As it unveiled a gleaming set of annual results, housebuilder Bellway added that it expected to deliver volume growth of around 10% in the new financial year based on the record size of its order book.

The FTSE 250 group has taken about 128 reservations per week in the nine weeks since 1 August, which is up 5% on this point last year, increasing the order book by a third on last year to 4,435 homes and its record value of £975.4m.

"Depending on market conditions, the board envisages further expansion to supplement our existing capacity through the opening of new divisions," chief executive Ted Ayres said in a statement.

"The strong market conditions, capacity for growth and our controlled approach to land investment should result in Bellway delivering further value for shareholders."

Results for the year to 31 July, which had been roughly flagged in an August pre-close trading update, showed revenues up 34% to £1.48bn and profit before tax up 75% to £246m, ahead of the consensus £238m.

Like its peers, Bellway has profited from the booming UK housing market, with a 21% increase in units from more sites and higher selling rates a 10% increase in average selling price and margins up 360 basis points to 17.2%.

Broker Liberum lauded the "strong" results and said the company's low share price looked "anomalous".

"Bellway is our preferred 'grower' amongst housebuilders, taking advantage of the space left by the majors and with a strong track record of volume growth without balance sheet endangerment," it added.