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15 Jan 2019 | 07:10

Persimmon sees annual profit modestly ahead of market expectations

House builder Persimmon said it expected its annual profit to be 'modestly' ahead of current market expectations after higher home completions and selling prices boosted revenue.

Revenue for the year through December rose 4% to £3.74bn after legal completions rose 3% to 16,449 new homes and the company achieved an average selling price of around £215,560, up 1% on-year.

'The UK housing market has continued to benefit from robust employment levels, low interest rates and a competitive mortgage market, which have supported confidence and customer demand across the regions,' Persimmon said.

The value of forward sales at 31 December was around £1.40bn, up 3% on-year.

At 8,377, legal completion were higher in the second half of 2018, up from 8,072 in the first.

'We anticipate our pre-tax profits for 2018 will be modestly ahead of current market consensus, having benefitted from the new developments we have opened through the year' Persimmon said.

'As we look forward to the 2019 spring season Persimmon is in an excellent market position.'

'Whilst the future performance of the UK economy is currently subject to increased levels of uncertainty the group is well positioned with its strong outlet network together with the availability of a range of attractive house types at affordable prices across the regions of the UK, supported by a high quality land bank and conservative financial structure.'

'We will give an update on our assessment of the housing market over the early weeks of 2019 when we announce our results for the year ended 31 December 2018 on Tuesday 26 February 2019.'

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