Housebuilder George Wimpey predicted results for the year would be at the top end of market forecasts after it unveiled a 29 per cent rise in half-year profits to £158.5m.

The company played down the impact of higher interest rates but admitted it expects more "modest" levels of house price inflation than previously experienced but still said results for the year would be at the top end of market forecasts.

Wimpey, which employs 200 staff in the region, has worked on a range of projects across the North-East in the past six months, including Manor Fields at Wynyard Park, Birkdale View at Consett, Meadow View at Ingleby Barwick.

Wimpey's confidence has been helped by the completion of a three-year drive to boost operating margins and improve the performance of US arm Morrison.

All three housebuilding divisions reported strong half-year profits growth with recent acquisition Laing Homes showing the best improvement - up 43 per cent to £17.1m. George Wimpey profits rose 22 per cent to £138.7m while Morrison Homes was ahead 33 per cent to $60.1m (£33m).

The businesses also boast strong order books with 80 per cent of projected 2004 sales already reserved or completed in the UK with 90 per cent in the United States.

Previous efficiency efforts resulted in an operating margin of 17.1 per cent at George Wimpey, while there was still "some room for improvement" at Laing Homes despite an increase to 12 per cent from 10.6 per cent a year earlier.