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Tue September 25 2018

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Persimmon posts 13% profit growth

21 Aug House-builder Persimmon reports continued strong market demand for new homes with forward sales 6% ahead of last year.

Persimmon chief executive Jeff Fairburn
Persimmon chief executive Jeff Fairburn

In the first half of 2018 Persimmon’s new home sales increased 4% to 8,072 (2017: 7,794) – an additional 278 new homes delivered.

For the six months to 30th June 2018 Persimmon made a pre-tax profit of £516.3m, up 13%  (2017: £457.4m), on group revenue up 5% to £1.84bn (2017: £1.75bn).

New housing revenue increased by 5% to £1.74bn (2017: £1.66bn).

The company expects to open around 100 new sales outlets through the second half of the year to add to its current 365 active sites around the country.

Group chief executive Jeff Fairburn said: "These strong results reflect the continued successful delivery of the group's long term strategy and our commitment to meeting customer demand in each of our 30 regional markets across the UK. 

“We have continued to experience good levels of customer interest in our housing development sites as we trade through the quieter summer season. Customers are continuing to benefit from a competitive mortgage market and confidence remains resilient based on healthy employment trends and low interest rates. Our forward sales are 6% ahead of last year at £2.12bn which places the group in a strong position for the second half of the year.

“The group continues to invest in the business to improve operational capacity. The increased utilisation of the group's standard house types and the greater use of the group's offsite manufacturing capability will support the group's aim to deliver further increases in new home volumes.

“The group has a robust platform to continue to deliver successful outcomes based on its high quality land bank, strong forward sales, excellent financial position, and experienced management team. We believe we are well positioned to deliver further high quality, sustainable growth."

According to a survey released last week, Jeff Fairburn was the highest paid chief executive in the FTSE 100 last year, pocketing a £47.1m package.

MPU

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