Housebuilder鈥檚 revenue increases 27% to 拢777m for first six months of the year

Housebuilder Persimmon has increased its half-year profits ten-fold on last year to 拢101.4m, the firm said today.

Reporting results for the six months ending June 30 above expectations, the housebuilder said it had achieved sales of 拢777m, an increase of 27% on the previous year.

It said the market had slowed in recent weeks 鈥渁s expected鈥�, although put this down to the 鈥渘ormally quieter summer period鈥� rather than a post-election dip. It said it was still on target to achieve its aim of a 10% increase in sales revenue for the year. 95% of this year鈥檚 planned sales have already been made, it said.

The profits included a 拢63m write-back in land value as the market had improved. It added it had a further 拢288m of potential increases in land value that it may choose to write into its accounts at a future date, dependent on the market. It said it had bought 4,263 plots in the six months, taking its land bank to 58,957.

The statement said the Comprehensive Spending Review in October will create greater certainty which 鈥渕ay help to improve sentiment further鈥� within the UK housing market. It said: 鈥淲e expect annual volume growth of new home sales to continue to be steady in line with any general improvement in the economy.鈥�

John White, group chairman, said: 鈥淥verall, whilst we currently remain cautious, we are optimistic about the future of our business. We have a strong balance sheet, excellent cash generation, national coverage and an experienced management team.鈥�

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