THE weaker housing market in the middle of 2000 led to a decline in half-year profits at housebuilder Beazer, the group said in its last set of results before being taken over by rival Persimmon.

Beazer, of Bath, showed pre-tax profits for the six months to December 31 dipping to £32.8m, compared to £39.8m at the same point last year.

The slower housing market during the summer and autumn of last year led to a 12 per cent fall in the number of completions, although average selling prices rose nine per cent to £104,600. Turnover was also lower, at £349.8m, against £365.5m last time round.

A one-off cost of £1.7m relating to Beazer's abortive merger with Solihull-based builder Bryant affected the figures.

Beazer and Bryant announced merger plans in December, with the intention of creating one of the UK's largest housebuilding groups, called Domus.

But the merger was gatecrashed by London builder Taylor Woodrow's £556m takeover of Bryant.

This was followed by York firm Persimmon's £558m swoop on Beazer.

Beazer chairman Victor Benjamin conceded the results had clearly "been overtaken by recent events".

While trading had been weaker in the summer and first quarter, the group had seen a firmer end to the year as the market improved and it increased the number of its sales outlets.

Beazer, which includes the Charles Church brand, had seen demand continue to improve in the first weeks of the calendar year, he added.

Shareholders will pick up an interim dividend of 2.9p, up seven per cent on last year's figure.