Persimmon reports strong housing demand despite revenue slump
The housebuilder provided a positive outlook for investors.
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Your support makes all the difference.Persimmon has hailed “strong demand” for its new homes despite posting a fall in revenues and profits for the past six months.
The housebuilder provided a positive outlook for investors despite wider signals of a slowdown in housing demand from people weighed down by rocketing household bills and rising interest rates.
The York-based company said average private sales were up 1% over the six months to June 30, compared with the same period last year.
It added that forward sales have been “robust” and reiterated its guidance of between 14,500 to 15,000 house completions this year.
Nevertheless, Persimmon confirmed a reduction of new home completions for the past half-year.
We are making important progress in quality, service, land investment opportunities and efficiencies to build an even stronger business
It completed 6,652 new homes in the latest period compared with 7,406 last year, when it benefited from the stamp duty holiday.
Total group revenues declined to £1.69 billion for the six-month period, compared with £1.84 billion over the same period last year.
Meanwhile, it posted a £439.7 million pre-tax profit compared with £480.1 million a year earlier.
Dean Finch, group chief executive, said: “Persimmon continues to perform well.
“We are making important progress in quality, service, land investment opportunities and efficiencies to build an even stronger business, while continuing to deliver the strong financial returns that Persimmon is renowned for.
“Demand for our attractively priced, high-quality homes has remained robust, with our average private sales rates for the period being around 1% ahead year-on-year.”
Shares in Persimmon were 2.5% lower after early trading on Wednesday.