Wimpey delivers downbeat message

George Wimpey delivered a down beat message to the City this morning: its first half performance is down on the same period a year ago.

In a trading statement covering the six months to 3 July, the housebuilder revealed that sales rates, completions and margins were down while costs increased.

Wimpey chief executive Peter Johnson said: "2005 started encouragingly. However, the recovery was shortlived and since February the market has remained steady at a level well below the very strong first few months of last year. There has been no change in the market since the general election."

Sales rates were 17.5% down compared with last year. Completions are expected to be 10% behind, although the full-year total should be the same as 2004. The average sale price was static at £195,000, but higher incentives and increased costs have resulted in gross margins falling 2.5 percentage points.

The 2005 order book is 7% lower by volume and 12% lower by value.