Persimmon house sales rise 6%
A trading update from house-builder Persimmon reveals a 6% in unit completions for the first half of the year and a fair degree of confidence despite Brexit uncertainties.
For the six months to 30th June 2016 Persimmon increased its legal completion volumes to 7,238 new homes, up from 6,855 for the same period in 2015.
With its average selling price rising from £194,378 to £205,500, group revenue is up 12% to £1.49bn (2015 H1: £1.33bn).
Half-year results will be announced in full on 23rd August 2016, but profits look like being solid as the first half operating margin will be ahead of the 23.0% delivered in the second half of 2015, the company revealed.
In its statement the board said: “It remains too soon to judge the effect that the result of the EU Referendum will have on the UK new homes market. We believe that market fundamentals remain strong, supported by long term unfulfilled demand, and that the UK housing market will continue to provide good opportunities for those companies with the right strategic focus and the balance sheet strength to navigate future changes in trading conditions. We believe our focus on building traditional family housing in attractive locations for all purchasers from first time buyers to home movers will continue to attract customers in good numbers.”
Mortgage approvals remained ahead of last year for the April/May period despite a period of increasing uncertainty leading up to the EU referendum and the private sales rate during May was 1% ahead year on year.
Persimmon will start construction on approximately 100 new outlets in the second half.
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This article was published on 5 Jul 2016 (last updated on 5 Jul 2016).