Partly Cloudy

Partly Cloudy

max temp: 18°C

min temp: 10°C

ESTD 1874 Search

Construction: First half profits at house builder Persimmon up 57%

11:59 19 August 2014

Persimmon has reported an increase in first half profits.

Persimmon has reported an increase in first half profits.

Archant

House builder Persimmon today reported a 57% rise in first half earnings after taking advantage of the buoyant UK property market.

shares

The FTSE 100 listed group said underlying pre-tax profits rose to £212.9million for the six months to the end of June.

Revenues were up 33% at £1.2billion while completed sales increased 28% to 6,408, with the average selling price up 4.3% to £186,970.

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.”

The results come a day after rival Bovis Homes reported a 166% rise in half-year profits but there have been mixed signals from other parts of the market, with the Nationwide Building Society reporting a fall in quarterly gross mortgage lending and some evidence from estate agents of a fall in asking prices.

Persimmon’s results cover a period when new rules for lenders on checking whether borrowers can afford their loan − the Mortgage Market Review − have been introduced, and Nationwide said these had had some effect as its lending fell.

However, Persimmon said that, while it had now entered the traditionally slower summer trading weeks, private sale reservation rates were ahead of last year and forward sales from July 1 were running at £1.53bn, 22% ahead of the same period in 2013.

Persimmon’s current developments in Suffolk and Essex include sites in Hadleigh, Colchester, Chelmsford and Saffron Walden, with others due to follow shortly in Lowestoft, Ixworth and Kentford.

Company chairman Nicholas Wrigley said: “We anticipate that mortgage lenders will continue to actively develop their participation in the UK mortgage market over the medium term.

“We welcome the continued discipline of mortgage lenders against the backdrop of the ongoing improvement in the UK’s wider economic performance which is supporting increased confidence in our regional markets.

“Disciplined lending in support of a keen appetite to purchase newly built homes from both first time buyers and existing home owners provides the opportunity for the housebuilding industry to increase construction activity.

“The results for the first half of 2014 represent an excellent further step forward in achieving our strategic objectives.

“Whilst we remain vigilant about the continued challenges facing our markets emanating from events both at home and abroad I remain confident of Persimmon’s continued successful development.”

Shore Capital analyst Robin Hardy said the profits were “a fraction higher” than expected and maintained a buy stance on the stock.

shares

1 comment

  • More and more PROFITS !, less and less Affordable Homes !

    Report this comment

    freedomf

    Tuesday, August 19, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Christopher Hayman of Hayman Distillers with his children Miranda and James.

Essex gin maker Hayman Distillers is celebrating after winning a Gold award at this year’s International Wine and Spirits Competition (IWSC).

Uncertainty over Government policy is holding back potential investment in the offshore wind sector, according to East of England Energy Zone director James Gray.

The absence of a clear Government stategy is leaving the offshore wind industry “in limbo”, according to a leading figure within the sector in East Anglia.

Bakery chain Greggs saw like-for-like sales rise 5.9% in the six months to July 4.

Higher breakfast sales and a bigger range of healthier products helped Greggs grow underlying profits by 51% in the first half of the year.

Barclays chairman 

John McFarlane.
Photo: VisMedia

Barclays boss John McFarlane today signalled plans to ramp up growth, squeeze costs and streamline the business after announcing a 25% rise in first half profits.

The rate of growth in the UK economy rebounded during the second quarter of 2015, but the manufacturing sector continued to struggle, according to official figures.

UK growth bounced back in the second quarter of 2015 as gross domestic product (GDP) increased by 0.7%, according to official figures.

Ransomes Jacobsen operations director Simon Rainger addresses staff as the company's last Ransomes Commander mover leaves the production line.

Staff at Ipswich-based turf maintenance machinery maker Ransomes Jacobsen have marked the end of an era, with the last Ransomes Commander mower having rolled off the production line.

Charles Manning on the new patio area at Bears Boutique Bar and Bowling in Star Lane, Ipswich

Businessman Charles Manning is pleased with the way his Bears bowling bar and grill is fitting into the entertainment offer in Ipswich – and with the business community.

Barker Gotelee has welcomed Lucy Underwood, conveyancing assistant, Linda Crawford, solicitor, Nicky Sunderland. trust and estate planning practitioner, and Lisa Hobbs, junior secretary.

Ipswich-based law firm Barker Gotelee has welcomed four new employees across its expanding business.

A Ryanair aircraft atStansted Airport.

Budget airline Ryanair today reported a 25% jump in earnings for the first quarter of its new financial year.

Alton Towers in Staffordshire.

Alton Towers owner Merlin expects annual earnings for its theme parks business to drop by as much as £47million this year following last month’s rollercoaster crash.

Most read

Most commented

Topic pages