Sunny

Sunny

max temp: 24°C

min temp: 17°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

Tim Dunford, managing director and master brewer at the Green Jack Brewery, third from left, with Beer for Summer judges Mark Dorber, left, and Charlie McVeigh of The Draft House, right, and Peter Gordon, on trade director of Budweiser Budvar.

A Suffolk brewing company is celebrating after winning a new national “Beer for Summer” competition.

The Bishop Of Ely, the Rt Rev Stephen Conway, centre, at the hospice site dedication in Cambridge with Mark Hart, construction director at Barnes Construction, right,  and Stuart Evans, chair of the trustees of the Arthur Rank Hospice Charity.
Photo: Paul Nixon Photography

An act of dedication has taken place to mark the start of contruction work on a new £10.5million hospice in Cambridge, which is being built by Ipswich-based Barnes Construction.

Ian Carr, chief executive of Prettys

Regional law firm Prettys has reported a 13% increase in revenue for the year to April 30.

Oliver Crichton and Ruth Sunaway of Birketts.

East Anglian law firm Birketts has announced the promotion of five senior associates to partner status across its four offices, including Oliver Crichton and Ruth Sunaway in Ipswich.

The Lord Lieutenant of Suffolk, Clare, Countess of Euston, presents the Queen's Award for Enterprise to Seafast.

Specialist logistics company Seafast was yesterday presented with the Queen’s Award for Enterprise.

Ipswich Station hanging baskets Shows (L-R) Jackie Rathbone, Abellio Area Ticket Office Manager; Kris Collins, Thompson & Morgan Comms Officer;  Ric Staines ActivGardens Lead Horticulturist and Trainer,

Stunning floral displays are welcoming passengers at Ipswich, Stowmarket and Diss rail stations this summer thanks to a partnership between local charity ActivLives and train operator Abellio Greater Anglia, with help from Ipswich’s own horticultural company Thompson & Morgan.

Carolyn Fairbairn, who is to become director general of the CBI.

A former member of the Number 10 Policy Unit is to become director general of the CBI.

Spending on drinking and eating out remained robut during May, according to the latest Greene King Leisure Spend Tracker report.

Most Britons are planning to holiday in the UK rather than overseas as they continue to monitor their spending carefully, according to a new survey.

Bury St Edmunds coffee company Frank and Earnest is among more than 100 start-up firms to have received support under Menta's Enterprise Engagement Programme.

Bury St Edmunds-based enterprise agency Menta has completed a project to support start-ups during their first year in business.

Lieutenant Aaron Lewis from Rochford, who was killed in Afghanistan in 2008 and in whose memory the Aaron Lewis Foundation has been established to support llocal and military charities through sporting and social endeavours.

The regional arm of David Wilson Homes has raised £17,000 at a golf day, held at Stoke by Nayland, for a charity set up in memory of a soldier.

Most read

Most commented

Topic pages