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| George Wimpey' annual profits would probably fall The UK's third biggest housebuilding company, George Wimpey announces the trading statement ahead of preliminary results for the year ended 31 December 2005. Total Group completions have increased to 17, 024 (2004: 16, 654). Reflecting the more challenging market conditions in the UK and the impact of a number of one-off items, Group profit before tax is expected to be towards the lower end of market expectations, below the record levels achieved in 2004. Year end gearing is expected to be below the 2004 level of 39%. Following the resolution of some outstanding tax issues, the tax rate for 2005 is expected to be unchanged at 31%, despite the higher proportion of US profits. Total UK completions were 12, 100, just 1% below the number achieved in 2004 (12, 232), despite the slower UK housing market. Average net selling prices were 4% below the prior year, the result of changes in mix as well as increased incentives. The US housing market has enjoyed another record year. Average selling prices were 7% ahead of 2004. Wimpey's sales registered an increase of 11 percent. Wimpey will announce its full-year earnings on February 21. write your comments about the article :: © 2006 Construction News :: home page |