The share price of the two firms did fall earlier this week, though, along with those of most other housebuilders, because of speculation that next week's budget will include rises in stamp duty on house purchases.
Construction analysts said the positive updates showed that the housing market was still healthy and that companies were on target to post even better profits and earnings for shareholders.
KBC Peel Hunt analyst Stephen Rawlinson said the housebuilders were proving to be strong, consistent performers. He said: "The forecast profits of these companies are going up all the time and they did fantastically last year. It is all positive at the moment."
Most housebuilders, except for Prowting, Wilson Connolly and Gleeson Homes, reported pre-tax profits last year that met or bettered City expectations, thanks to high demand, low interest rates and rising prices.
The forecast profits of these companies are going up all the time and they did fantastically last year. It’s all positive at the moment
Stephen Rawlinson, KBC Peel Hunt analyst
Wimpey chairman John Robinson told shareholders at the group's annual general meeting last week that the firm was on course to post improved results for the six months to 30 June. He said: "Wimpey's first half results will show excellent progress over 2001, and that steady progress will be sustained for the year as a whole."
Crest Nicholson chairman John Matthews said demand was still strong and the group had achieved good prices on rising volumes for the first three months of the year. "The successful implementation of production efficiencies should enable us to take full advantage of this market," he said.
Wimpey is benefiting from its acquisition of Alfred McAlpine Homes last September. It completed 6991 units in the first three months of the year compared with 5285 in the same period of last year. The average selling price rose £19,000 to £136,000. Robinson added that sales over the Easter weekend were 318 compared with 232 in 2001.
No comments yet