Housebuilder’s shares reach post-Brexit high

A Persimmon development

THE share price of housebuilder Persimmon closed at its highest level since the day of the EU referendum after the market responded positively to its upbeat trading update.

The FTSE 100 company’s shares rose 7% to close at 1,935, and the strong revenue growth it reported saw investors also lift share prices across the sector, including Taylor Wimpey and Barratt Developments.

The index closed at a record high for the sixth consecutive day, at 7,195.

Persimmon is Yorkshire’s largest listed company, and has a market value of £6bn.

Yesterday it unveiled an 8% growth in revenues in 2016, having increased the number of completions by 4% and raising average selling prices by 4%.

The York-headquartered company opened 255 development sites across the UK during the year and said it is building on all sites which have an implementable planning consent.

Cash balances also increased, up 60% to £913m at the year end from £570m.

Despite the improvements, Persimmon’s share price remains 8% below where it was before the Brexit vote. Its share price crashed in the two trading days after the referendum, with £2.4bn being wiped off the company’s value.

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