15th Jan 2019 08:11
LONDON (Alliance News) - Persimmon PLC on Tuesday said it delivered a "strong trading performance" during the recently-ended financial year with a 4% rise in revenue.
The FTSE 100 housebuilder expects total revenue for 2018 to come in at GBP3.74 billion, up from GBP3.60 billion a year ago.
New housing revenue was predicted to rise by 4% to GBP3.55 billion from GBP3.24 billion, with the company's legal completions increasing by 406 new homes, or 3%, to 16,449 from 16.043.
Average selling price increased by 1% year-on-year to GBP215,560.
Looking ahead, the firm said it remains "committed" to increasing the level of new home construction in order to meet market demand. At the end of 2018, forward sales were ahead 3% on the prior year, standing at GBP1.39 billion.
Persimmon now expects 2018 pretax profit to be "modestly ahead of current market consensus" after benefitting from new developments opened during the year.
"As we look forward to the 2019 spring season Persimmon is in an excellent market position. Whilst the future performance of the UK economy is currently subject to increased levels of uncertainty, the group is well positioned with its strong outlet network together with the availability of a range of attractive house types at affordable prices across the regions of the UK, supported by a high quality land bank and conservative financial structure," the company added.
The housebuilder will publish its annual results on February 26.
Persimmon shares were trading up 2.4% at 2,283.00 pence early Tuesday morning.
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