14th Apr 2016 06:24
LONDON (Alliance News) - Houebuilder Persimmon PLC on Thursday reported a strong start to 2016, with private sales rates and average selling prices continuing to rise after the strong growth it reported in 2015, but noted planning delays is "hindering the drive" to boost house volumes.
The FTSE 100-listed group said total forward sales revenue in the first 15 weeks of 2016, including legal completions taken so far this year, are up 8.0% at GBP2.15 billion, compared with GBP2.00 billion in the year earlier period.
It said its weekly private sales rate per site is up 6.0% on the year, and it has sold 7,598 homes forward at an average selling price of about GBP220,000, up 5.8% on the year.
Persimmon has now opened 75 of the 100 new sites it had planned to open in the first half of 2016, meaning it is now currently developing 370 active outlets across the UK.
Persimmon noted that planning delays continue to erode the total number of active outlets being developed by the industry, which it said is "hindering the drive to increase the volume of newly built homes delivered to the market".
"We are working hard to increase our active outlet numbers towards around 400 by the end of 2016, and will continue to focus on increasing our output to meet market demand," the company added.
Persimmon said it has recently concluded an amendment of its GBP300.0 million revolving credit facility with five of its relationship banks, extending the maturity of the facility by two years to March 21, 2021.
"Since the launch of the new strategy in early 2012 the group has delivered a 56% increase in new homes completed, invested over GBP2,200 million in new land, and opened 812 new development sites. We have also returned a total of GBP1,071 million of surplus capital to shareholders, over GBP550m higher than was originally planned. The group is in a strong position to continue to make good progress over future periods," Persimmon said.
By Hannah Boland; [email protected]; @Hannaheboland
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