8th Aug 2024 10:01
(Alliance News) - Persimmon PLC on Thursday said it is on track to achieve full-year completions at the top end of guidance amid an ongoing recovery in the UK housing sector.
The York, England-based housebuilder said in the first half that ended June 30, pretax profit fell 3.1% to GBP146.3 million from GBP151.0 million the previous year.
Revenue increased 11% to GBP1.32 billion from GBP1.19 billion, while cost of sales also rose 11% to GBP1.06 billion from GBP954.5 million.
Persimmon maintained an interim dividend of 20 pence per share.
During the period, 4,445 new homes were completed, up 4.6% from 4,249 last year. The average selling price of properties fell 2.2% to GBP281,859 from GBP288,327.
Operating expenses reduced by 2.3% to GBP89.6 million.
Although, the company incurred a GBP25.0 million impairment relating to its investment and long-term loan notes in TopHat Enterprises Ltd, which are now valued at nil.
Chief Executive Officer Dean Finch said: "The first half of the year has been strong with improved sales rates and robust average selling prices, despite ongoing affordability challenges. Strengthening consumer sentiment, improving macro-economic conditions and the government's welcome and ambitious planning reforms that demand more of the high quality, affordable homes that are Persimmon's core strength, are all supportive of our ambition to grow this year and in the future."
Persimmon's landbank encompasses 81,545 owned plots, of which 38,067 have detailed planning.
Looking ahead, the company expects to deliver 10,500 new homes at the top end of guidance, reflecting a 5.8% increase from 9,922 in 2023.
The forward order book, including legal completions due to be recognised in the second half, stands at GBP1.7 billion.
Persimmon shares were up 2.4% to 1,575.25 pence each in London on Thursday morning.
By Elijah Dale, Alliance News reporter
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