National housebuilder Westbury plc has announced a record 14% increase in annual profits and says production at its Space4 prefrabricated timber house factory will dramatically increase this year.

The company reports profits of £71m on sales of £560m for 2001 – its ninth straight year of profits, earnings and dividend growth.

The West Bromwich Space4 factory, launched last year and representing a £4m investment, is expected to produce 1,500 homes this year out of a total of 4,000 new homes built by Westbury.

It is scheduled to break even in the second half of this year after £2m of losses in its first six months during initial heavy investment.

The factory produced more than 400 house shells during the year, lower than expected because of the temporary suspension of work following a fatal accident last December.

Westbury chief executive Martin Donohue said: ‘The potential benefits of the Space4 product are being recognised by our customers. In particular, buyers have appreciated the high levels of insulation in the Space4 shells and the significant savings in winter fuel bills which these can produce.’

&#8220Housing is clearly still driving forward at a brisk rate and timber frame is certainly buoyant as a result.”

Charles Grant, chairman of the UK Timber Frame Association

The factory will begin to supply its first non-Westbury customers later this year – other housebuilders and construction companies operating in different sectors.

Mr Donahue expects the housing market to continue to be favourable, with interest rates and inflation remaining low and demand exceeding supply.

Charles Grant, chairman of the UK Timber Frame Association, said: ‘Housing is clearly still driving forward at a brisk rate and timber frame is certainly buoyant as a result.’