1st May 2019 08:18
LONDON (Alliance News) - Housebuilder Persimmon PLC said Wednesday ahead of its annual general meeting that it expects its half-year legal completions to remain flat, as its forward sales revenue in 2019 to date declined compared to the year before.
For the period from January 1 to date, total forward sales revenue, including legal completions taken to date, was GBP2.70 billion, down from GBP2.80 billion for the same period in 2018.
Persimmon had 350 active sales outlets, down from 375 outlets the prior year, while its weekly private sales rate per site was 5% lower.
However, the private average selling price of sales in the group's forward order book rose slightly to GBP237,850 from GBP236,500 the year before, as pricing conditions remained firm in regional markets.
Looking ahead, the housebuilder said that sales reservations remain in line with company expectations, and legal completions for the first half are expected to be flat compared to a year before.
During the first half of 2019 so far, Persimmon has opened 43 of the 90 new outlets planned for the period, and is building new homes on all sites which have detailed planning consent.
"Since the start of the year the new build housing market has proved resilient with high levels of employment and low interest rates continuing to support consumer confidence. With mortgage lenders continuing to offer attractive products, the level of customer activity has been encouraging with visitor levels to site, sales conversion rates and cancellation rates all running in line with our expectations," Persimmon said in a statement.
Persimoon will release another trading update on July 4.
The stock was down 1.0% early Wednesday at 2,213.00 pence.
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