Listed house builder reports robust performance
York headquartered home builder Persimmon has recorded a strong third quarter performance, supported by firm selling prices and resilient demand for new build homes.
The company, which has today announced a trading statement covering the period from 1 July 2020 to 9 November 2020, also says its average private weekly sales rates per site for this period are 38% ahead of 2019.
Persimmon says it has about £1.36bn of forward sales reserved beyond 2020, 43% up on last year (£0.95bn).
And it reports strong liquidity, with a cash balance of c. £960m at 31 October 2020 (2019: £371m).
Dean Finch, group chief executive, said: “Persimmon continues to perform robustly despite the significant challenges presented by the pandemic and we are currently on course to deliver a good result for 2020.
“The health and safety of our colleagues, customers and communities remains our top priority and we have been carefully following each of the devolved Government’s measures to curb the spread of the pandemic.
“In England’s second lockdown, our Covid-secure sales offices, sites and manufacturing facilities are remaining operational, in line with Government guidance, as we continue to support our customers and deliver their new homes.”
Persimmon notes demand for new homes has remained resilient despite the continued challenges surrounding Covid-19, the UK economy and the uncertainty relating to the UK’s future global trading arrangements.
Its update adds: “We remain confident that legal completions in the second half of this year will be at least in line with the second half of 2019, supported by robust build rates, subject to there being no significant disruption to the construction industry due to additional measures introduced to control the pandemic.
“The Group held c. £960m of cash at 31 October 2020 and had deferred land commitments of c. £325m.
“Of the Group’s current land creditors c. £70m is to be paid by 31 December 2020 resulting in an estimated £255m remaining at the end of the year, supporting the Group’s strong liquidity.
“In addition, the Group has an undrawn £300m Revolving Credit Facility which has a five-year term out to 31 March 2025.”
