Telford Homes said its reported profits in any given period are driven by the number of open market completions achieved and there were far fewer of these in H1 2017 than H1 2016.
"As a result of the weighting of completions across the year pre-tax profit for H1 2017 will be lower than last year but entirely in line with expectations," the company said in a statement.
"The interim dividend is proposed to increase in line with the anticipated full year profit growth and will not be affected by weighting between the two half year periods," Telford said.
"To date Telford Homes has secured 95 per cent of the open market homes anticipated to complete in the year to 31 March 2017 and 87 per cent of the gross profit expected in the year.
"The Board's expectations for the full year to 31 March 2017 and further into the future remain unchanged and the Group is on track to deliver significant growth in both output and profits over the next three years."