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Wimpey Sees Profit At Low End Of Expectations

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LONDON (Reuters) - Housebuilder George Wimpey said on Friday it expected group pretax profit for 2005 to be towards the low end of market expectations after being hit by one-off items and a challenging housing market.

However Wimpey said it was encouraged by a firming of the market, particularly in the south, during the late autumn.

It added that with the exception of California, its U.S. business Morrison should continue to enjoy healthy markets following rapid growth over the past 18 months.

LONDON (ShareCast) - Housebuilder George Wimpey expects full year profit before tax to come in towards the lower end of market expectations, although it has been encouraged by some firming of the market during late autumn.

In a trading statement ahead of results for the year to 31 December, the group blamed the performance on more challenging market conditions in the UK and the impact of a number of one-off items.

Total group completions increased to 17,024 from 16,654 in 2004. The UK eased 1% to 12,100, with operating margins for the year expected to be similar to those achieved in the first half.

A strong US housing market helped average net selling prices rise 7% on 2004, while overall Morrison completions grew 11% to 4,924

Wimpey said it is too early to predict the market in the UK for 2006, although it was encouraged by some firming of the market, especially in the south, during the late autumn.

"The actions we have taken to strengthen our order book ensure we are better placed to respond to the market than we were a year ago," it added.

Current industry projections forecast only a modest slowdown in the US this year, with most of Morrison's markets expected to remain healthy and support continued growth, it said.

Final figures will be announced on 21 February.

Edited by BuyingBear

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Its amazing, how many "reports" have shown house prices still going up? How come Wimpey can make the following statement then:

"the expected fall in annual profits reflected “more challenging conditions” in the British housing market, where it sold less houses at a lower average price."

They're the second biggest house builder in the UK. Clearly house prices are going down, not up.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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