9th Nov 2021 09:16
(Alliance News) - Persimmon PLC said Tuesday it has continued to perform well in 2021 thanks to healthy demand.
The York, England-based housebuilder said private sales reservation rates per site are still ahead of 2019. For the period July 1 to this past Monday, average private new home sales reservation rate per site was 16% ahead of the same period in 2019.
Persimmon said demand for newly built homes continues to underpin positive pricing conditions in the UK housing market.
"We continue to manage the current industry supply chain difficulties well, with our Brickworks, Tileworks and Space4 timber frame manufacturing facilities playing an important role in providing security of supply and mitigating some of the impact of rising materials costs. As reported at the start of the current year, we expect our industry-leading margins will remain resilient, accommodating the expected increase in our build-cost inflation this year of about 5.0%," the housebuilder said.
Persimmon noted its land spend in the year to date is about GBP380 million, and held about GBP895 million in cash at October 31, down slightly from GBP960 million a year before.
"With GBP1.15 billion of forward sales reserved beyond the current year and a quality pipeline of new developments coming on stream, Persimmon has a robust platform to support its continued high quality growth and the delivery of superior long-term sustainable returns for the benefit of all stakeholders," Chief Executive Dean Finch said.
Persimmon said it expects to deliver a 10% increase in legal completions in 2021 from the 13,575 legal completions in 2020 and is looking to return to 2019 volume levels in 2022.
"The fundamentals of the UK housing market remain strong with good levels of consumer demand and confidence, mortgage availability and low interest rates," the company added.
Shares in Persimmon were down 1.7% on Tuesday morning in London at 2,767.24 pence each, having initially rallied to 2,735.00p.
By Paul McGowan; [email protected]
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