HOUSEBUILDER Bellway continued to strike an upbeat note after forecasting results ahead of expectations.

Bellway, of Newcastle, said sales prospects appeared extremely encouraging as the group looked to build on an 11 per cent rise in interim profits.

In the six months to January 31, Bellway achieved pre-tax profits of £39.1m.

Chairman Howard Dawe said reservations for the six months to July 31 were up on a year earlier and achieved at higher selling prices.

He said: "We are looking forward to a strong second-half performance with results ahead of expectations."

Bellway has already sold a record number of homes for the following financial year.

Major land acquisitions in Birmingham, Coventry and Leicester have also strengthened Midland operations.

In the North-East, Bellway is looking at designs for homes in exess of 3,600sq ft, and apartments of more than 2,000sq ft at its flagship development at Wynyard, Teesside.

About 600 apartments are also planned for the riverside in Gateshead and there will also be more than 8,000sq ft of commercial property.

Barry Miller, managing director of the North East division, said: "Over the Easter period, sales exceeded £2.5m over all regional sites and at High General's Wood, near Washington, we have been selling ahead of construction, with Easter sales at over £1m. Properties there sell for an average of £300,000."

The half-year figures from Bellway show it sold a record 2,306 homes during the period, with turnover improving by £10m to £288m. Operating profits rose £5m to £42.5m.

Analysts are expecting pre-tax profits of about £108m after the company broke through the £100m barrier last year. Shareholders will receive an interim dividend of 4.55p per share, up from 4.1p a year earlier.