Homebuyer interest helps Persimmon

HOUSEBUILDER Persimmon has reported an upturn in business in a statement ahead of its half year results to the end of June.

It completed 4,712 new homes in the first six months of 2012, an increase of 6% on the previous year (4,439) and turnover for the first half was around £805m, a 13% increase on the previous year.

The firm – which is involved in a number of key developments in the West Midlands – says it has opened 65 new sites in the first half of the year and is currently selling new homes from around 375 sites.

Visitor numbers to both the Persimmon Homes and Charles Church home finder web sites for the first six months were over 50% stronger than for the previous year and the firm suggests this reflects customers’ growing preference to search for a new home using the internet.

Persimmon says it anticipates opening around 60 new sites during the second half of the year.

Its average selling price was 7% ahead year-on-year at around £171,400 (2011: £160,583) reflecting a greater proportion of traditional family homes in the sales mix.

At June 30 the value of its total forward sales was around £774m, around 7% ahead of the prior year.

Its long-term strategy announced in February requires a continued improvement in margins and associated free cash generation.

Persimmon invested around £150m in land in the first half and has acquired around 5,600 new plots, increasing its consented land bank to around 63,800 plots (June 2011: 62,364 plots).

The firm suggests its performance in the first half of the year represents an excellent start in the delivery of its new long-term strategic plan to develop the group into a stronger, larger business, backed by a significant and high quality land bank whilst returning £1.9bn (£6.20 per share) of capital to shareholders over the next nine years.

The first capital payment of £227m is anticipated in June 2013.