Persimmon on track for record profits
UK housebuilder Persimmon moved to cool fears over the affordability of the new homes market today as it prepared to unveil another set of record results.
The group, which builds more than 12,000 homes a year, said the 10% rise in its average selling price so far this year – to £170,000 (€255,000) – was below the level reported in surveys and showed the sector remained competitive.
Updating the market ahead of half-year results, York-based Persimmon said it was on course to beat market expectations and set its highest profits figure for any six month period.
Prior to today, analysts had been expecting underlying profits of £199.6m (€299.5m), up from £151.7m (€227.6m) seen a year earlier. The full-year figure is forecast at £425.2 million, compared with £352.5m (€638m) last time.
Persimmon also said it had a record order book with total sales for 2004 at 10,400, generating sales of £1.8bn (€2.7bn). This includes 860 units for its Charles Church upmarket housing business.
The recent strength in forward sales means Persimmon is braced for a quieter summer, although it said that 10% more outlets than a year ago, coupled with the usual seasonal upturn in the autumn, would ensure a strong year.
It added: “We therefore remain well positioned and are confident of achieving our planned growth targets.”
Pointing to the affordability of its new homes, Persimmon said it continued to sell a “significant number” of new properties at under £150,000 (€225,000).
The company added that its landbank had increased to around 60,000 plots, helped by the acquisition of larger sites such as ones recently announced in Birmingham and Colchester.
