Britain's strong housing market helped construction firm Barratt Developments' pre-tax profits grow by ten per cent during the second half of 2006.
Turnover increased by just two per cent, but the firm saw profits rise to £180.2 million in the six months to December 31st last year.
Its average selling price rose by 1.3 per cent from £162,900 in 2005 to £165,000, reflecting the strong growth of the UK's residential property market.
Other factors contributing to the group's improved margins were a three per cent growth in completions and an "improved mix between private and social housing".
Private housing completions increased by four per cent while social housing completions fell by 1.3 per cent.
Barratt announced earlier this month its planned acquisition of Wilson Bowden in a £2.2 billion deal.
It restated its commitment to ensuring the completion of its former rival's takeover today. Group chief executive Mark Clare said the acquisition would enhance the "platform for future growth" established by Barratt's performance in the last six months.
But he warned that, looking ahead, 2006's robust advances in the property market may not be equalled in the coming year.
"While the fundamentals of the housing market remain sound, there is uncertainty over further changes to interest rates and the effect these may have on housing demand," he warned.
"That said, the market is stable with good visitor levels and interest being shown going into the key spring selling season."
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