5th Jul 2016 06:16
LONDON (Alliance News) - Persimmon PLC on Tuesday posted strong results in the first half of its financial year, but said it was too soon to tell how the result of the UK vote to end European Union membership will affect the UK new homes market.
The FTSE 100-listed housebuilder said both its average sales price and number of legal completions rose in the six months ended June 30, with legal completion volumes up 6.0% to 7,238 from 6,855 for the same period a year earlier, whilst average sales price rose 6.0% to GBP205,500 from GBP194,378. As a result, revenue rose by 12% to GBP1.489 billion from GBP1.33 billion.
Persimmon said low borrowing costs and healthy labour market conditions continued to support UK consumer confidence through the first half of the year, and mortgage approvals for home purchase in the first quarter of 2016 were 18% ahead of the prior year. Approvals remained ahead in April and May compared with the same period a year earlier "despite a period of increasing uncertainty leading up to the EU referendum", the company said.
Persimmon said it has started construction on 35 sites, and said it expected its first half operating margin to be 23% ahead of that delivered in the second half of 2015, though noted that it continued to experience planning delays at its sites.
The group's forward sales value at June 30 was GBP1.36 billion, level with a year earlier, and the average selling price of the 4,083 houses forward sold into the private sales market was GBP227,000, 6.0% ahead of last year, Persimmon said.
Persimmon said it remains committed to building the new homes across the country that Britain needs, and said it "remains too soon to judge the effect that the result of the EU Referendum will have on the UK new homes market".
"We believe that market fundamentals remain strong, supported by long-term unfulfilled demand, and that the UK housing market will continue to provide good opportunities for those companies with the right strategic focus and the balance sheet strength to navigate future changes in trading conditions," the company added in a statement.
Persimmon will release its interim results on August 23.
By Hannah Boland; [email protected]; @Hannaheboland
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