Strategy succeeding as Persimmon’s sales rise

PERSIMMON has enjoyed an “excellent start” to its long-term growth plan as the housebuilder built and sold more homes over the first half of this year than last.

The York-based group has also invested £150m in land, increasing its land bank as it looks to develop the business.

Updating the stockmarket this morning, Persimmon said that although sentiment within the UK housing market continues to be impacted by economic factors, the group remains confident of achieving its plans.  

“The group’s performance in the first half of the year represents an excellent start in the delivery of our new long-term strategic plan to develop the group into a stronger, larger business, backed by a significant and high quality landbank whilst returning £1.9bn (£6.20 per share) of capital to shareholders over the next nine years,” it said. 

It added the first capital payment of £227m is anticipated in June next year.

Over the six months to June 30, Persimmon completed 4,712 new homes, an increase of 6% on 2011. Sales rates were up and turnover for the first half was around £805m, a 13% increase on the previous year. 

Persimmon opened 65 new sites in the first half of the year and is selling new homes from 375 sites. It said web traffic was up and expects to open a further 60 housing sites during the second half of 2012.

The average selling price was 7% ahead year-on-year at £171,400. Persimmon expects its underlying operating margins to have increased in the first half to more than 11.5%.

The group will announced its half year results on August 21.