24
Aug
Persimmon profits lifted by 'strong' spring sales
Homebuilder Persimmon has seen its first-half profits increase
more than tenfold after a period of "strong sales" in the
spring.
Persimmon reported a pre-tax profit of £101.4m in the first
six months, up from a £9.8m profit a year ago.
The group said it had focused on improving margins and reducing
debt.
Persimmon also said that it would recommence paying a dividend
to shareholders at the end of the year, after suspending the
payment in 2009.
Revenues rose 27%, while its average selling price was 8.6%
higher at £168,936.
Completions increased by 16% to 4,657.
Persimmon said that after experiencing a strong spring, housing
activity had slowed over the "normally quieter" summer period.
Government clarification
The homebuilder was cautious in its outlook.
"The availability of mortgage credit continues to be
constrained," the company said in a statement.
But it added: "The clarification of the details of the coalition
government's spending plans to be announced in October will create
greater certainty which may help to improve sentiment further
within the UK housing market."
The firm said it expects annual volume growth of new home sales
"to continue to be steady in line with any general improvement in
the economy".
Source: http://www.bbc.co.uk/news/business