27th Jun 2005 07:00
Persimmon PLC27 June 2005 TRADING UPDATE - MONDAY 27TH JUNE 2005 Persimmon plc announces the following trading update ahead of its InterimResults to 30th June 2005, which will be announced on Tuesday 23rd August 2005. Despite a slower period of trading during the six months to 30th June 2005,pre-tax profits for the period are expected to be ahead of the prior year. Wewill have legally completed c. 6,000 units, a similar level of completions tothose achieved during the same period last year (H1 2004: 6,058 units). Persimmon's extensive geographical coverage and wide availability of homes whichoffer accommodation matching purchaser demand and aspirations, has beenfundamental in achieving this result. The average selling price of homes sold was c. £184,000 which represents a c.7.6% increase (H1 2004: £171,082) reflecting a change of mix and specificationin addition to some price growth. Total sales revenue to date for the full year2005, including legal completions already achieved, is at c. £1.8 billion fromc. 10,000 new homes (June 2004: 10,421). This is at the same level as lastyear's extremely strong sales position. We are also currently operating from c.15% more sales outlets than at this time last year, which puts Persimmon in astrong position to maintain good sales volumes throughout the remainder of 2005,although our focus remains on maximising margins and selling prices. Whilst selling costs and the use of incentives have risen slightly, overallmargins have been maintained at the levels achieved in the comparative periodfor 2004. We have continued to generate strong cash flow whilst investing in both goodland opportunities and work in progress to ensure that we maintain a strongposition in this market with a comprehensive spread of developments and housetypes. Our landbank is currently at c. 62,000 plots (December 2004: 59,947)owned and under control. We anticipate a further reduction in gearing to c. 13%at 30th June 2005. Whilst the market in some areas of the UK has slowed, there continues to be gooddemand in other areas, such as Scotland and the South West of England. Sellingprices for new homes remain resilient and we continue to experience good visitorlevels to our show homes. In addition there remains an undersupply of new homesin general across the whole of the UK, which reinforces our continuingconfidence in the market and in Persimmon's ability to make further progress. Further details will be issued when we announce our Interim Results on Tuesday23rd August 2005. For further information, please contact: Persimmon plc Finsbury GroupJohn White, Group Chief Executive Edward Orlebar/ Faeth BirchMike Killoran, Group Finance Director Tel: 020 7251 3801Tel: 01904 642199 Print resolution images are available for the media to download fromwww.newscast.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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