George Wimpey profits leap 42% to £122m

George Wimpey has reported pre-tax profit for the first half above expectations and expects full-year results to be at the top end of market forecasts.

In the half year to 30 June, pre-tax profit rose 42% to £122.7m from £86.3m. Analysts had forecast a figure of about £105-110m.

The company said that it is adopting a strategy aimed at enhancing the dividend growth rate as its underlying earnings performance has risen to higher and sustainable levels, resulting in high levels of dividend cover.

Chairman John Robinson said the UK housing market has returned to more sustainable levels.

"Record low interest rates and unemployment continue to provide good levels of affordability and the long-term housing shortage is generally expected to underpin the market over the coming years," he said.

In the UK, operating profits at George Wimpey were up 26% to £114m despite a 13% fall in sales to £691m from £793m.