10th Nov 2020 09:29
(Alliance News) - Persimmon PLC on Tuesday announced the payment of a further interim dividend following a "continuing strong performance" as sales rates remain ahead of the year prior.
The York, England-based housebuilder said trading through the summer weeks was "robust" as sales rates remained strong due to good availability of homes at an advanced stage of construction.
"Demand for new homes has remained resilient despite the continued challenges surrounding the Covid-19 pandemic, the UK economy and the uncertainty relating to the nature of the UK's future global trading arrangements," Persimmon said, in a third-quarter trading update.
From July 1 to November 9, average private weekly sales rates per site was 38% higher than a year prior, driven by the strength of the group's gross sales levels.
Persimmon said: "As anticipated, as the wider housebuilding industry has gradually returned to greater activity, the group's market share has started to trend towards more normal levels in recent weeks, although sales rates remain ahead of the prior year."
Persimmon said that it expects legal completions in the second half of 2020 to be in line with the second half of the year prior. This is supported by robust build rates, but hinges on there being no significant disruption to the construction industry from Covid-19 restrictions, the housebuilder noted.
Persimmon declared a further interim dividend of 70 pence per share "reflecting the group's continuing strong performance". This, together with the previously paid interim dividend of 40p per share, replaces the postponed 110p per share final dividend declared for 2019, the company said.
Persimmon shares were down 3.4% at 2,694.00 pence each in London on Tuesday morning.
By Greg Roxburgh; [email protected]
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