Wilson Bowden profit and revenue down in first half of 2006

Wilson Bowen's revenue and pre-tax profit were both down slightly in the first half of 2006 thanks to a sluggish housing market and continued pressure on margins, according to its interim results announcement.

Revenue in the half year ended 30 June 2006 was £525.2m (2005: £554.9m), while pre-tax profit dropped 14% to £85.5m (2005: £99.6m) before exceptionals and reorganisation costs of £3.3m.

Both operating profit and operating margin were down at David Wilson Homes at £74.2m (2005:£90.2m) and 16.7% (2005: 19.6%).

However, operating profit was up slightly at Wilson Bowden Developments to £20.4m (2005: £20.1m) and operating margin rose to 24.9% (2005: 21.0%).

Despite this chairman David Wilson said: "We have entered the second half with a record forward order book and record number of active sites - in line with our strategy of increasing housing volumes. We are seeking to protect margins by minimising build cost increases and controlling overheads as well as by increasing our strategic land bank."

The company's land bank increased by 1,900 plots to 20,000 plots over the period. Its forward order book stands at 2,266 reservations, with sales value of £387.3m compared with the same period last year of 1,488 reservations, valued at £270.5m.