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Trading statements

Persimmon says H1 trading performance excellent

05 July 2017 07:22

Persimmon said its trading performance in the first half of the year has been excellent.

It had increased legal completion volumes by 8% to 7794 new homes, from 7238 a year earlier. This showed the group's drive to meet market demand in all its regional markets across the UK.

Persimmon's average selling price improved 3.5% to about £213,000, from £205,762. Revenue grew by 12% to £1.66bn, from £1.49bn.

"We have continued to experience good levels of customer demand since the Group's AGM trading update on 27 April 2017, with the market taking the snap UK General Election in its stride," the company said optimistically.

"Consumer confidence remains resilient and compelling mortgage rates continue to offer good support to new home buyers," the company said.

Group sales through May and June were healthy, leaving Persimmon's weekly private sales rate per site for the first half about 7% ahead of last year at 0.80, versus 0.75.

"We expect the Group's strong trading through the first half of the year, including the contribution from 95 new sales outlets opened in the period, will lead to further good progress in our operating margin.

"We anticipate that the Group's operating margin in the first half of 2017 will comfortably exceed the 25.7% delivered in the second half of the prior year."

Persimmon said it had strong momentum moving into the second half of the year, with total forward sales value at 30 June 2017 of £1.60bn, 18% higher than last year (2016: £1.36bn) and a network of 375 active outlets.

In addition, sales through the second half of 2017 will be supported by opening a further c. 100 new sales outlets despite the frustration of continued delays to site starts due to planning inefficiencies.

"We are developing all our sites for which we have secured detailed residential planning consent."

Story provided by StockMarketWire.com

Related Company: PSN

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