Westbury housing venture builds profits

Westbury, the house builder, has seen its innovative "manufactured" housing venture break even for a six-month period for the first time.

Westbury, the house builder, has seen its innovative "manufactured" housing venture break even for a six-month period for the first time.

Reporting interim results, the company also put itself in the "confident" group among house builders. In recent weeks, the City has received mixed messages from the sector, with Taylor Woodrow, for instance, reining in expectations for the remainder of the year and warning of flat volumes for 2005. Bellway, on the other hand, said it could ride out any softness in the market.

Geoffrey Maddrell, Westbury's chairman, said: "Overall the fundamentals for our industry remain sound with household formation continuing to outstrip supply. In the short term consumer confidence, which is influenced by wider economic and social factors, could inhibit demand.

"However, we remain convinced of the sustainability of the UK housing market in the longer term. The board looks forward with confidence for the outcome of the full year and beyond."

There was relief in the City at the upbeat language used, with Westbury shares 4 per cent better at 383p, providing a boost to the shares of a number of other sector players.

Philip Sparks, at Evolution Securities, said: "Fortunately, Westbury's outlook statement put it closer to Bellway's camp than Taylor Woodrow's."

Announcing a 22 per cent rise in half-year profits to £58.0m, Westbury said it would ramp up annual production over the next five years to 7,000, from an estimated 4,570 homes this year.

Westbury revealed that Space4, which produces the shells of new homes in a factory, broke even for the six months to 31 August. This business provided 932 home units in the period, including 143 units to third parties. For the whole of last year, the business produced 1,300 units.