Taylor Woodrow achieved a two per cent rise in annual profits as its North American arm offset a weaker showing from Bryant Homes in the UK.
The Solihull-based house-builder saw domestic business post profits of £233.4 million in 2005, against £301.1million in 2004 when conditions were more favourable.
Overall profits before tax were two per cent up on the previous year at £411 million. Taylor said the new year had seen "encouraging increases" in visitor numbers and reservations but it was still too early to predict the outcome for the UK housing market in 2006.
Taylor said it looked forward to another year of growth in North America, following a jump in 2005 profits to £199.6 million from £127.6 million. The performance enabled group surplus to improve.
Keith Bowman, equity analyst at Hargreaves Lansdown stockbrokers, said the results endorsed the company's business model of geographical diversification, although he added doubts lingered over the "health of the North American housing market going forward, given a backdrop of rising interest rates".
Woodrow said Florida and Texas experienced stronger than normal demand with the North American division seeking 80 per cent of its annual target by the middle of the year.
For the UK, Woodrow said reservations were slightly ahead, even though it is operating off fewer sites than a year ago. Competitive market conditions lowered average prices to £185,000 in 2005, against £197,000 in 2004.
This was attributed to a competitive market and higher proportion of social and apartment completions.
Taylor said the UK market remained attractive in the medium term, continuing to be fundamentally underpinned by supply-demand imbalance, low interest rates and benign economic conditions.
There had been "encouraging increases" in visitor numbers and reservations, with a decline in cancellation rates, compared to 2005.
However, it added: "It is still too early to predict the UK market for 2006."
The company employs 600 people at its head office in Solihull which oversees its Midland division with sites in Olton, Lichfield, Stratford, Warwick and Worcester.
Taylor said its group housing order book had reached a record £1.32 billion and its group housing landbank of 75,160 plots was also at a record level.
It spent £773 million on land during the year, up 39 per cent on a year ago.
Taylor said the UK housing market during 2005 was challenging, with overall demand lower than in 2004.
The divisional order book increased to £411 million by December 31, compared to £407 million at the end of 2004.
Chief executive Iain Napier said: "We are confident of another year of growth in our overseas businesses and are well-placed to benefit from any continued improvement in customer confidence in the UK."