US growth boosts Wimpey profits

George Wimpey Plc, Britain’s biggest homebuilder by revenue, said profit in the first half increased 29% as the company expanded US output and benefited from rising house prices.

Net income surged to £109.4 million (€165.6m) or 27.85 pence a share. Full-year results will reach expectations, currently £440m for pretax profit, CEO Peter Johnson said.

“We have the benefit of US growth and it gives us long-term possibilities,” he said. “The next step is to broadly double the size of our business there.”

Wimpey has benefited as British and US interest rates, at almost a 50-year low, fuelled demand. The average price of a Wimpey home added 13% in the first half. Johnson is expanding by building more homes in the US, where sales were close to a record in June, said the Commerce Department.