ONE of Wales's most successful housebuilders sees Newport as an important place for continuing development as it celebrates record profits.

Bellway Homes, which is to build a £40 million riverside housing scheme and is keen to develop elsewhere in the city, says its track record in towns and cities which are being redeveloped showed that it knew what had to be done.

With a 24% surge in pre-tax profits to £133.1m, Bellway ended the financial year with its strongest forward sales position ever and is optimistic about its future prospects.

Regional managing director Mike Joyce, who is from Cwmbran, said the company was the first into Cardiff Bay, where it created contemporary housing that respected the history of the area.

"Newport is a fantastic place and we have to be mindful of that," he said. "We can build to reflect this but it doesn't have to be avant-garde."

And he urged Newport not to be downhearted at the Corus cutbacks at Llanwern because city status and the Urban Regeneration Company would lead to investment.

"Cardiff Bay was the impetus for a lot of investment in Cardiff though no-one wanted to see Cardiff Docks go, in the same way that they didn't want to see the Corus closure," he said. "We always say Newport has a lot of catching up to do but it has great potential.

"The creation of modern schemes that fit in and don't detract from areas that enjoy great history will need to be a key factor in future planning.

"The industry also has to look to the quality of materials, both internally and externally, and always be conscious that it's our duty to put something back into these areas."

Bellway's Newport riverfront scheme is in the Rodney Parade area and the company has started work on another alongside the River Usk at Willenhall Street.

Mr Joyce said the company looked upon Newport as being demographically good, accessible to the M4 and with a strong industrial base.

Bellway, which describes itself as the "local national house builder," enjoyed has seen turnover leap 11.1% to £773 million.

Mr Joyce said he believed the market in Wales would continue to enjoy steady demand.

"We have not seen the excesses of the buy-to-let market take hold in Wales, with the vast majority of homes acquired by owner-occupiers," he said.

"We have also got to consider that South Wales remains a very desirable to place to live."