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Profits at housebuilder Persimmon is set to increase by 50% when it reports full year results in February.

In a trading update released to the City this morning, the firm said profit for the year to 31 December will be at the high end of analysts鈥� expectations, which currently range between 拢130-148m.

However, the firm said total revenue will come in at 拢1.53bn, down 2.5% on the 拢1.57bn reported in 2010. This is because of more sales than expected through the government鈥檚 First Buy scheme, in which the housebuilder has to put in 10% of the cost of a house, meaning average selling price fell 2% on 2010.

The total number of homes sold in 2011 was almost identical to 2010, at 9,360, but the firm said it underlying operating margin will grow to 鈥渁pproaching鈥� 10% despite the fall in average sales price.

Its statement said: 鈥淎s a result of this significant improvement in underlying operating profitability, combined with a reduction in net finance costs, we anticipate an increase of c. 50% in underlying profit before tax. This result will be towards the top end of analysts鈥� expectations.鈥�

The firm said a strong autumn selling season had allowed it to secure forward sales of 拢615m for 2012, 9% above the level at this time last year, when the autumn season was exceptionally weak.

Overall the firm said the market remained 鈥渃hallenging鈥�, but that it had seen 鈥渆ncouraging levels of visitors, resilient sales reservations, low cancellation rates and stable prices.鈥�