Half year profits up by a third at Persimmon



Nicholas Wrigley
Nicholas Wrigley

Persimmon has hailed the first six months of 2015 as a “period of solid sustainable growth” as profits for the housebuilder increased by 31 per cent.

The firm recorded profits for the year to the end of June of £272.8 million when compared to £208.9m over the same period last year. Revenue was up 11 per cent to £1.33 billion from £1.2bn in 2014.

Legal completions increased 7 per cent to 6,855 new homes sold (2014: 6,408) with the average selling price rising 4 per cent to £194,378 (2014: £186,970).

Chairman Nicholas Wrigley said he is expecting sales of new homes to rise strongly next month as the summer holidays come to an end and visitors flock to its show homes.

“We anticipate a good autumn selling season after the summer holiday period draws to a close,” said.

Legal completions increased 7 per cent to 6,855 new homes sold (2014: 6,408) with the average selling price rising 4 per cent to £194,378 (2014: £186,970).

Mr Wrigley said that customer activity remained healthy throughout the first half of 2015 and strengthened after the general election in early May.

Persimmon has invested £2.17bn in land since 2012, opened 607 new sites including the 122 new outlets opened in the first half of 2015, and built 41,800 new homes.

In the first half of 2015 it acquired 8,565 new plots across 52 sites and secured planning consent for 2,974 plots from its strategic land bank on 16 outlets. It also added a further 1,300 acres of land to its strategic land portfolio, which now totals approximately 18,000 acres.

Persimmon now has 92,404 plots of land owned and under control in its consented land bank, as of 30th June 2015 (June 2014: 82,250 plots).

Jeff Fairburn
Jeff Fairburn

Group chief executive Jeff Fairburn said: “Persimmon has traded well in the first half of 2015. The Group continues to take advantage of the current market opportunities to deliver sustainable growth whilst also utilising its excellent cash generation to build a strong asset platform for the future. We have now entered the traditionally slower summer weeks for the market. Our private sale reservation rate since 1 July is currently 5 per cent ahead of the same period last year which is a reflection of the continuation of healthy customer demand.

“The performance in the first half of 2015 further demonstrates the results of the group’s focus on successfully executing its operational objectives and the delivery of the 10-year strategic plan launched in 2012. We are confident that our long term strategic focus through the current cycle will continue to deliver strong returns for our shareholders.”

Tags: Persimmon



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