Encouraging sales maintain momentum at listed housebuilder
York-headquartered housebuilder Persimmon says its balance sheet and liquidity remain robust, in a trading update today for the period from 1 January 2021 to date.
The business says its current forward sales position, including year to date legal completions, of £3bn (2020: c. £2.4bn) is 23% ahead of last year and 11% ahead of the same point in 2019 (2019: £2.7bn).
It notes customer enquiry levels remained encouraging throughout the period, while its average private sales rate for the current year to date is well ahead of 2020.
Persimmon adds this is expected given the impact of the pandemic from week 12 last year, but points out the private sales rate figure is also about 17% ahead of 2019.
Dean Finch, group chief executive, said: “Persimmon has made a strong start to the year with current forward sales 23% ahead of last year and 11% ahead of the same point in 2019.
“Our build rates continue at pre-Covid levels and we remain on track to deliver first half volumes approaching those of the first half of 2019.
“We are progressing our land holdings and taking advantage of good quality investment opportunities, bringing 6,000 plots across 29 locations into the business in the period and securing a strong pipeline for the future.
“Our current outlet network is expected to remain stable at approximately 300 outlets on average throughout the year.
“Demand for newly built homes remains healthy and the Group’s sales rates are encouraging.”
The Group held £940m of cash at 23 April 2021 with deferred land commitments of approximately £90m to the end of the current year.
In addition, the Group has an undrawn £300m Revolving Credit Facility which has recently been extended, having a five year term out to 31 March 2026.
