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Shares in Bellway slid more than 6% today after the housebuilder warned it may see pressure on profits in the current year.

Announcing its full year results the listed housebuilder said industry-wide build cost pressures 鈥渨ould continue to have a moderating effect on margins鈥�.

It added: 鈥淎s a result of these combined influences, the reduction to a consistent, underlying operating margin will be more pronounced.鈥�

Bellway also said it was reducing its exposure to the capital鈥檚 housing sector, indicating it is leaning towards buying and developing more profitable land outside the capital.

The housebuilder said it would 鈥渃ontinue to invest in financially viable locations in London where demand is strong鈥�.

But it admitted: 鈥淭he proportion of homes sold in [the capital] is likely to reduce in the foreseeable future, reflecting the positive availability of good quality land at attractive returns elsewhere in the country.鈥�

Bellway is near to completing its 514-apartment scheme 鈥淭he Residence鈥� development at Nine Elms, in south London, where it sold 214 homes in the year with an average selling price of 拢820,467, up from 拢705,567 last year.

The group said it had benefited from a one-off boost to gross operating margin at Nine Elms, and would see a reduction in margin in the current financial year as the scheme neared completion.

Despite reducing its invested capital in London the group said demand in the capital for affordably priced homes 鈥渞emained robust鈥�.

The housebuilder said it completed a record total of 10,892 homes in the 12 months to 31 July 2019, up 6% year-on-year, at an average selling price of 拢291,968. This is expected to dip to at least 拢285,000 following the completion of its Nine Elms scheme.

And as the UK approaches the 31 October deadline for leaving the EU, Bellway said its European suppliers of electrical appliances and ceramic tiles were looking at alternative trading routes into the country, while most of its materials were sourced domestically.

Bellway reported pre-tax profit of 拢663m, up 3.4%, on turnover of 拢3.2bn, up nearly 9%.

Operating profit came in at 拢675m, up 3.4%, with an operating margin of 21%, down 110 basis points.