House builder Bellway said pretax profits for the year to July 31 should be in line with expectations.

The company said that home sales for the period increased from 7,001 last year to 7,117 this year, selling at an average price of £167,000.

The company, in a trading update, said: "It is anticipated that profit before tax will be in line with expectations and, yet again, be at a record level extending the group's enviable annual earnings growth record to ten consecutive years."

Bellway said its order book at the end of July stood at £561 million, up on £513 million a year earlier.

This means some 45 per cent of the company's 2006/7 target has been reserved.

The company said a healthy order book and stable market conditions gives it confidence about its out-look.

The company is part of a partnership delivering a £15 billion project, over about 15 years, to improve the lives of 40,000 people living in the Chelmsley Wood, Fordbridge, Kingshurst and Smithswood.

Investec Securities said the statement was in-line with its expectations, noting the highlight came from the strong forward sold position.

The broker reiterated that it is one of its sector top picks, trading cheaply on most valuation metrics on 2007 earnings of 7.9 times.

Investec Securities remained a strong buyer, noting it expects the group to outpace the market given its strong land position and excellent track record.