But housebuilder says operating profit for full year will be 鈥渋n line with expectations鈥�
Persimmon has reported a fall in completions of 37% as the housing sector鈥檚 struggles continue.
The housebuilder, in a trading update for the three months to 6 November, said it completed 1,439 homes in the period, down on the 2,270 for the same period last year, due to a 鈥渟lower sales environment鈥�.
It said it expects to build around 9,500 homes in its full year, down 36% on the 14,868 built the previous year.
Persimmon has previously said a drop in completions is expected due to the low forward sales position at the start of the year. Forward sales increased from 拢1.4bn to 拢1.6bn quarter-on-quarter but is still down on the 拢2.09bn for the same period last year.
It said its operating profit is 鈥渋n line with鈥� expectations and its operating margin is likely to be in line with the reduced figure posted in the first half of the year. Persimmon reported underlying operating margin of 14%, down from 27% year-on-year.
The housebuilder also said it is pursuing a 鈥渉ighly disciplined鈥� approach to cost management and said its hiring freeze will mean a reduction in staff numbers of around 700 in the year.
It said it has also taken a 鈥減roactive approach鈥� to secure price reductions on materials and labour from suppliers and subcontractors over the past few months, amid 鈥渟tubborn鈥� build cost inflation.
>>See also:
>>See also:
Persimmon鈥檚 sales rate has shown 鈥渁 strong pick up since the start of October鈥� improving to 0.59 from 0.45 last year
Chief executive Dean Finch said: 鈥淲hile the near term is likely to remain challenging and we remain disciplined on costs, we continue to position the business for growth when the market recovers, as demonstrated by our further progress on planning in the period.鈥�
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