7th Nov 2019 08:46
(Alliance News) - Housebuilder Persimmon PLC's trading over the summer met expectations, it said on Thursday, with consumer confidence remaining "resilient".
Persimmon said consumers remain confident despite continued uncertainty over Brexit and general problems facing the UK economy.
The strong housing market, it said, reflects solid employment in the UK and "some" real wage growth, as well as low interest rates and a "competitive but disciplined" mortgage market.
Persimmon said trading has been "resilient" in the second half of 2019 and it is now fully sold up for the current year. Some GBP950 million of forward sales are secured beyond 2019, compared to GBP987 million this time a year ago.
Sales volumes for the first half of 2019 dipped 6% year-on-year to 7,584 homes, but this was due to an approach of selling homes only when they are at an advanced stage of construction. Persimmon expects second half sales to be above the first half.
"I am confident the continued successful implementation of our detailed customer care improvement plans together with our strengthened forward build position, healthy forward sales, robust balance sheet and industry-leading land holdings provide a sound platform for the successful future development of the group," said Chief Executive Dave Jenkinson.
Shares were 1.7% higher on Thursday morning in London at a price of 2,315.00 pence each.
By George Collard; [email protected]
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