Wimpey improves competitiveness - hits 17% margin

Wimpey, one of the UK's leading housebuilders, has won its three-year battle to lift its operating margin to the same level as that of its competitors.
Latest interim results (six months to 30 June) show operating margins of 17.1% in George Wimpey Homes and 12% in the recently acquired Laing Homes business.
At last, the days of woeful 10% margins look to be banished to history.
Chief executive Peter Johnson conceded that over the past three years improving operating margin has been a priority. "This stage of our strategy is now largely complete," he said. "We will now concentrate on sustaining the improvements we have achieved in our UK margins."
Group turnover of £1.2bn (£1.1bn) produced a pre-tax profit of £160m (£120m).
In the UK, market conditions remained healthy and the continuing undersupply, a result of problems within the planning system, combined with good affordability, continue to support the market for new houses, Johnson said.
Wimpey has got to grips with Laing Homes and completions were up 67% on the same period in 2003. Cost savings of £12m following the acquisition from the John Laing Group have been achieved and land is now being acquired on better terms.
"Laing Homes is a much stronger business as a result of the actions taken, providing an excellent platform for future volume growth," Johnson said.
The exposure of Laing Homes to higher-priced houses over the £500,000-mark has been cut as Johnson thinks market risks in this top-end territory are too high.