Strong first half for housebuilder
STRONG first half trading has seen York housebuilder Persimmon deliver pre-tax profit of £208.9m, up from £132.9m a year ago.
Revenue came in at £1.198bn for the six months to June 30, from £899.9m in the corresponding period last year.
Legal completions increased 28% to 6,408 new homes sold, and average selling price increased 4.3% to £186,970.
Jeff Fairburn, group chief executive, said: “Persimmon has produced another strong performance in the first half of 2014, taking advantage of the current market opportunities to deliver growth whilst strengthening the financial position of the business.
“As we have entered the traditionally slower summer trading weeks, we have been encouraged by our private sale reservation rate since 1 July which is currently running 9% ahead of the same period last year.
“These results demonstrate the ability of the group to successfully execute its operational objectives to deliver the ten year strategic plan launched in 2012. We remain confident of Persimmon’s continued successful development.”
The group reported strong land investment with 14,251 plots secured in the period bringing consented landbank to 82,250 plots, while it reported continued success in securing planning consent for the group’s strategic land bank with 3,702 plots converted in the period, backed by a strengthening pipeline.
Net cash stood at £326.3m at June 30, while underlying basic earnings per share increased 61% to 54.8p, up from 34.1p in the corresponding period last year.
Persimmon said current forward sales were 22% ahead at more than £1.53bn.
“We anticipate opening c. 100 new development sites during the second half of 2014 and remain committed to increasing build rates to fulfil the demand from our customers promptly,” the group said this morning.
“The results for the first half of 2014 represent an excellent further step forward in achieving our strategic objectives. Whilst we remain vigilant about the continued challenges facing our markets emanating from events both at home and abroad I remain confident of Persimmon’s continued successful development.”
