18th Aug 2015 06:09
LONDON (Alliance News) - FTSE 100-listed housebuilder Persimmon PLC on Tuesday posted a 31% rise in first-half pretax profit as the company sold more houses at higher prices, driving its total revenue higher, and increased its gross margin substantially.
The group said its pretax profit for the six months to the end of June was GBP272.8 million, up from GBP208.9 million a year earlier, as the group's total revenue rose to GBP1.33 billion from GBP1.20 billion and its underlying operating margin rose to 20.5%, a 280 basis point rise year-on-year from 17.7%.
The group said it sold 6,855 new homes in the half, up from 6,408, with the average selling price of those homes up by 4% to GBP194,378.
Persimmon said it acquired 11,539 plots of land in the half, bringing its consented land bank to 92,404 plots, and said its current forward sales position is at GBP1.71 billion, 12% ahead year-on-year.
The group is not paying an interim dividend but said it paid its third distribution from its capital return plan in the half of 95 pence per share.
"Persimmon has traded well in the first half of 2015. The group continues to take advantage of the current market opportunities to deliver sustainable growth whilst also utilising its excellent cash generation to build a strong asset platform for the future," said Jeff Fairburn, Persimmon's chief executive.
"We have now entered the traditionally slower summer weeks for the market. Our private sale reservation rate since July 1 is currently 5% ahead of the same period last year which is a reflection of the continuation of healthy customer demand," Fairburn added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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