Bellway to build 10 percent more homes after a record year

LONDON (Reuters) - Britain's Bellway Plc (BWY.L) said it would build up to 10 percent more homes this year after it sold a record 7,752 properties in the 12 months to end-July, helping pretax profit rise 44 percent.

The housebuilder said the strength of the market in Britain -- underpinned by low mortgage rates and a shortage of supply of properties -- was reflected in its order book, which stood at 4,363 homes at the start of its new financial year.

Chief Executive Ted Ayres said reservations in the last nine weeks were up 16 percent on a year ago, in part because the company had more properties available.

"It's been a very good start in the first nine weeks, and it gives us confidence we can do volume growth of around 10 percent this year," he said.

Shares in Bellway were trading up 4.2 percent to 2.466 pence in early trade on Tuesday, topping the mid-cap index (.FTMC).

"Bellway remains our preferred housebuilder as its valuation is compelling and it is well placed to deliver volume growth as the biggest builders slow volume growth in exchange for cash returns and the smaller builders continue to struggle for finance," said analysts at Liberum, who rate the stock a "buy".

Bellway, which posted pretax profit of 354.2 million pounds, raised its total dividend for the year by almost half to 77 pence a share.

(Reporting by Paul Sandle, editing by Louise Heavens)