Westbury expects significant reduction in operating profit

House builder Westbury expects lower volumes, higher marketing costs and price pressures would cause "a significant reduction" in its first half operating profit.

Westbury said in a trading statement ahead of its interim results that reduced sales in the first half of the year had resulted in lower volumes than last year, rather than showing the increase that the firm had predicted.

The group said at the start of July that the market was trading below expectations adding that July and August had been similar despite strong marketing and increased incentives.

Westbury said it was entering the second half of the year with 125 outlets and it expects to show an improvement in sales rates benefiting from seasonal upturns in autumn and the new year.

In the statement it said: "There is a short-term lack of confidence in the buying public which is restraining the discretionary buyer, but there continues to be a core of people who have to buy.

"This core of buyers will sustain the industry at the current levels of output until the economic outlook improves and confidence returns.

"The recent reduction in interest rates is a helpful start, although it will take rather more to change sentiment."