Results for the year to July 31 2011 show pre-tax profit up to £67.2m from £44.4m last time on turnover up to £886.1m from £768.3m while operating margins rose to 8.5% from 6.7%.
The figures have allowed Bellway to boost its dividend payment to shareholders by nearly a third.
The payout has been made possible by a rise in average selling prices to £175,613 from £163,175 and a lid being kept on costs including cheaper land.
Chief executive John Watson said: “As the production of new homes, nationally, remains low, competition for work remains high amongst our subcontractors and suppliers.
“Whilst there are many inflationary and regulatory pressures at all levels in the house building process, our costs overall have not seen any substantial increases during the course of the year and this has helped to support the increase in the operating margin.
“Whilst labour rates vary from region to region, our strong order book provides visibility of workload for subcontractors, providing the group with a strong negotiating platform.
“As a result, the cost of labour intensive activities such as road, sewer and foundation works have remained relatively stable throughout the year.
“Looking back over the last two to three years we estimate the cost of building an average sized home has fallen by around 8%.”