Housebuilder Bellway has shrugged off easing property prices and surging costs to post a hike in profits, but cautioned over a Brexit risk to the next peak selling season.
It reported a 14.3 per cent rise in pre-tax profits to £641.1 million for the year to July 31, 2018.
Bellway said revenues lifted 15.6% to £2.96 billion over the year, while average selling prices for private homes rose by 9.3% to £323,426.
One of the UK's largest housebuilders, Bellway said it had a good year in its division in the west of Scotland with projects like Heritage Gate in Motherwell, which it said had laid the foundations for further expansion north of the border.
It plans to launch two new sites near Livingston in early 2019.
The firm said in its report: "In addition, our Scotland west division enjoyed a very successful year, delivering 794 homes and thus establishing a solid platform from which to spearhead our Scotland east division, which commenced trading on August, 1 2018."
"The new Scotland east division, together with the proposed investment in two further new divisions (in England), should enable Bellway to continue growing beyond this financial year."
Jason Honeyman, Bellway's newly appointed chief executive, said: "The board are mindful that the forthcoming exit from the EU in March could pose a threat to consumer confidence during the busy spring selling season."
The group's shares were knocked in August when it revealed dampened house price growth.
In its full-year results, the group said that this, together with higher costs, was taking its toll on profit margins, while demand has been "less pronounced at the higher end of the market".
The group has launched a raft of measures to help offset soaring costs of labour and materials in the sector, including a new lower costs build range, called the Artisan Collection, and an overhaul of suppliers and IT changes to target savings.
Stephen Williams, equity analyst at Brewin Dolphin, said that Bellway’s preliminary results came in "marginally ahead of the expectations" and added: "While it is mindful of the potential threat to consumer confidence following Brexit, current trading remains solid."
Meanwhile, the tender process has been launched for a fifth residential project for the new town of Shawfair, above, on the outskirts of Edinburgh, taking the number of new homes with consent or currently under way to 1000.
The new 16.1-acre development would bolt on to the existing village of Danderhall.
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