28th Apr 2021 09:11
(Alliance News) - Persimmon PLC said Wednesday its average private sales rate is outperforming the previous year, as it confirmed plans for extra shareholder returns in 2021.
The York, England-based housebuilder said its average private sales rate for the year to date is "well ahead" of 2020, and around 17% ahead of the same period in 2019. It also highlighted encouraging customer enquiry levels for the period.
The average private selling price in the forward order book also saw an improvement, rising 3% to GBP252,000, up from GBP244,500 for the previous year. Persimmon said its current forward sales position is GBP3.0 billion, up 23% from GBP2.4 billion in 2020 and 11% ahead of the GBP2.7 billion reported in 2019.
The FTSE 100 company said it expects its sales outlet network to remain stable at around 300 outlets on average for the year.
Persimmon said it had a healthy cash position of GBP940 million as of the end of last week and access to a GBP300 million revolving credit facility.
Due to the strong trading results, Persimmon confirmed its previously announced plans to return 110 pence per share in surplus capital in 2021 via two additional interim dividend payments of 55p in August and December.
Shares in Persimmon were up 2.1% to 3,214.00p in London on early Wednesday morning.
"Demand for newly built homes remains healthy and the group's sales rates are encouraging. Persimmon's high quality land holdings, balance sheet strength and liquidity provide a strong platform to continue to deliver the homes the country needs, underpinning long-term sustainable returns for the benefit of all of its stakeholders," said Chief Executive Dean Finch.
Persimmon said it will provide another trading update on July 8.
By Will Paige; [email protected]
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