Persimmon turnover up

Published:  06 July, 2010

YORK: House builder Persimmon is cautiously upbeat about its propsects following a 26% rise in half-year turnover, despite a slowdown in sales prior to the budget.

Persimmon said: "Whilst we remain cautious, we have a strong platform for profit growth as and when the housing market improves further."

The group said legal completions for the six months to June 30 increased by more than 16% to 4,657 homes, with average selling prices up 8% at £168,500 and turnover ahead by around a quarter to £785m.

Persimmon said that while sales prices and margins increased on the start of the year, the normal seasonal slowdown in reservations since the start of May was exacerbated by uncertainty ahead of the budget.

Persimmon said cancellations remain at low levels in line with a year earlier at around 16%. Total sales including legal completions and forward reservations are around £1.5bn, up from £1.3bn a year earlier.

Persimmon said its debt had fallen to £122m from £494m a year earlier and from £267m at the start of the year. It expects this could fall to below £100m by the end of the year.

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