15th Jan 2020 07:54
(Alliance News) - FTSE 100-listed housebuilder Persimmon PLC on Wednesday said it expects a decline in full-year revenue, though profit is set to meet market expectations.
In the year to December 31, revenue is expected to come in at GBP3.65 billion, a 2.4% decline from GBP3.74 billion last year.
New housing revenue dropped by 3.5% year-on-year to GBP3.42 billion, Persimmon said, with new home legal completion volumes down 3.6% to 15,885 from 16,449.
Persimmon's average selling prices were broadly in line with 2018, edging 0.1% higher to GBP215,700 from GBP215,563.
In Westbury Partnerships, which sells social housing to housing associations in the UK, the unit's average selling price rose 1.3% year-on-year to GBP119,150 from GBP117,653.
Westbury Partnerships contributed 21% of group sales in 2019, Persimmon said, up from 19% in 2018.
Persimmon added: "We anticipate the group's pretax profits will be in line with our market consensus."
In 2018, the company reported pretax profit of GBP1.09 billion.
The company entered 2020 with forward sales totalling roughly GBP1.36 billion, 2.9% down year-on-year from GBP1.40 billion.
The housebuilder added that it has roughly 365 developments in construction, a similar level to this time a year ago, and said it plans to open about 80 new sites in the first half of 2020.
Persimmon said: "Looking ahead to the 2020 spring season, Persimmon is in a strong market position. The group has a nationwide outlet network and a range of attractive house types available at affordable prices across the UK regions, supported by high quality land holdings and a conservative balance sheet."
Also on Wednesday, the company said Non-Executive Director Claire Thomas will step down on February 1, "to pursue other interests".
Chair Roger Devlin said: "Claire has made a strong contribution to the board during her time and we are disappointed to see her leave. We wish her every success for the future."
By Eric Cunha; [email protected]
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