The chief executive of Persimmon has said the housebuilder would only consider a rights issue to buy land or other businesses

Speaking after the company announced its 2008 results, Mike Farley dismissed recent speculation that the company would use a cash call to shore up its balance sheet.

鈥淎nything that happens in the future would be opportunity driven. We announced a refinancing deal this week which gives the business a good platform, so there is no need for a rights issue.鈥�

Completions fell by 36% from 15,905 to 10,202 in the year to 31 December 2008, which the company described as 鈥渢he most challenging period in the housing market in recent history鈥�.

The average selling price fell by 8.7% from 拢189,558 to 拢172,994 and turnover dropped 42% from 拢3bn to 拢1.76bn.

The company recorded a pre-tax loss of 拢780m, after land writedowns of 拢652m, and goodwill writedowns on acquisitions of 拢201m. Underlying pre-tax profit was 拢126.6m.

There were encouraging signs in January 2009 and Farley said visitor levels were up 18%, compared with the last quarter of 2008. Reservations per site per week stood at 0.45 compared with 0.3 in the same period.

He said there were indications that cash-rich first-time buyers and buy-to-let investors were returning as a result of low interest rates.