Highlights:

* Robust margins in line with management expectations.
* Average selling prices maintained and costs reduced.
* Strong land bank and tighter investment criteria reducing second half spend.
* Encouraging forward sales of £1.26bn.
* Operational integration of Wilson Bowden complete and synergies on target.

Mark Clare, group chief executive commented:

“Against a backdrop of a more difficult housing market, we have continued to trade satisfactorily with prices holding up and costs reduced."

Total completions increased by 26% to 9,056 (2006: 7,206) and exceeded our estimate given in November of 8,750 units. Private completions were 24% higher at 7,177 (2006: 5,791) and social housing completions rose 33% to 1,879. The average selling price of £177,900 (2006: £165,000) increased 8%.

On a pro forma basis (assuming Wilson Bowden had been acquired on 1 July 2006), total completions fell from 10,623 to 9,056 reflecting an expected reduction in outlets, lower buy to let activity and tougher market conditions.