A leading housebuilder has celebrated the success of a range - launched in the Midlands - which targets firsttime buyers.
However, Redrow chairman Robert Jones yesterday said group profitability for the six months to December 2005 would be "below the level in the corresponding period last year".
Mr Jones highlighted the "highly successful" launch of the Debut range in Rugby at the company's annual meeting.
The initiative had been followed by the sales release of its second scheme at Buckshaw Village, Chorley, in September.
He said: "Demand was equally strong and we now look forward to the December launch of our third scheme at Castle Vale, Birmingham." Mr Jones said the autumn sales market as anticipated had reflected a normal seasonal upturn.
The market had remained competitive with incentives continuing to be widely promoted within the industry.
Redrow had maintained its focus on the protection of margin to maximise the value derived from its land bank.
Reservations and sales are approximately ten per cent higher than in the same period last year. However the group's average selling price in the six months to December would be marginally below the second half of last financial year, said Mr Jones.
He went on: "This combined with our previously expressed view that margins will ease during the course of this financial year, will lead to the profitability for the six months to December 2005 being below the level in the corresponding period last year."
Group profits in the year to June 2006 would be more weighted towards the second half. Redrow will issue an update for the six months to December 31 on January 5.
