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Prefabrication aids Persimmon profits

19 Aug 14 House-builder Persimmon has seen its half-year profits grow by more than 50%, thanks in part to increased use of offsite fabrication.

Persimmon's Space4 plant in Birmingham
Persimmon's Space4 plant in Birmingham

For the six months to 30 June 2014, Persimmon’s underlying pre-tax profit increased by 57% to £212.9m (2013 H1: £135.3m).

Total revenues of £1,198.1m were up 33% (2013 H1: £899.9 million).

Legal completions for the first six months of 2014 increased by 28% year-on-year to 6,408 new homes (2013 H1: 5,022) and the average selling price was 4.3% higher at £186,970 (2013 H1: £179,199). 

The board said that “the swift and significant increase in production has been supported by our Space4 manufacturing facility. This modern method of construction has enabled Persimmon to secure greater efficiencies in resourcing and site activities supporting the delivery of our build programmes”.

Space4 increased its output of insulated panel frames to construct 2,483 new homes in the first half of the year, a 37% increase over the first half of 2013.

Space4 operates the largest automated timber frame manufacturing plant in the UK.

Group chief executive Jeff Fairburn said: "Persimmon has produced another strong performance in the first half of 2014, taking advantage of the current market opportunities to deliver growth whilst strengthening the financial position of the business.

“As we have entered the traditionally slower summer trading weeks, we have been encouraged by our private sale reservation rate since 1 July which is currently running 9% ahead of the same period last year.”

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