Builders return to profit

Published:  21 August, 2012

LONDON: House builders have returned to profit. Persimmon reported a 65% rise in underlying pre-tax profits in the first half of the year to £99m. Bovis Homes has posted a doubling in half-year profits pre-tax profits to £16.2m from £8.1m a year earlier and said it expects more big gains despite tougher trading conditions since June.

Persimmon's return to high profitability was helped by a rise in margins from 9% to 12.2% and completionsÊup 6% to 4,712 new homes.

Nicholas Wrigley, chairman of Persimmon said: ÒThese results reflect the early success of PersimmonÕs new strategy to grow into a stronger, larger business whilst returning £1.9bn of surplus cash to shareholders.

Bovis Homes, like other house builders, it is benefiting from an increasing proportion of sales on sites acquired at cheaper prices after the housing market downturn.

Bovis completed 944 house sales in the first half of the year, up 18%Êon a year earlier and with an average sale price of £164,400. It said prices in the south, where it has 70%Êof its land bank, were more robust than in locations further north.

The company says: "In the short term, the group expects market pricing to remain relatively stable at the current levels, as the group foresees few significant changes in either housing market supply or overall customer demand."

Sign Up

For the Builders' Merchants News enewsletter.

In the spotlight


Builders Merchants Vacancies – UK Wide

We work closely with the National and Large Independent Builders Merchants as well as Manufacturers & Distributors. We have vacancies all over the UK for those who work within the Building Supplies sector.

Guest Blog by Simon Damp

Is DIY a lost art?

As time goes by, the art of do-it-yourself when it comes to activities around the home and garden is fast becoming more and more of a lost art.