Housebuilder says visitor rates have been rising since start of year but market remains challenging

Persimmon has said it remains cautious despite posting results for 2007 that one analyst described as 鈥渘o worse than feared鈥�.

In the year ended 31 December 2007, pre-tax profit was 3% up at 拢582.7m on a 4% drop in turnover to 拢3bn.

Completions were down 5% to 15,905 and average selling prices edged up from 拢188,129 to 拢189,558 in 2006.

Chairman John White said: 鈥淧ersimmon has delivered an excellent set of results during what has been a very challenging year. When confidence returns and sentiment improves we anticipate a return to a stronger market; in the meantime we remain cautious.鈥�

Operating margins increased from 20.3% to 21.7%, which the company said reflected the 鈥渟trict discipline applied to all our costs鈥�.

The negative customer reaction to the credit squeeze during the autumn now appears to be easing a little following recent interest rate reductions鈥�.

Company statement

The company closed three offices in January.

The company鈥檚 order book to date in 2008 is 拢1bn, down from 拢1.3bn in 2007 but it said visitor levels have improved each week since the beginning of the year although conversion to sales has remained 鈥渃hallenging鈥�.

The company said: 鈥淭he negative customer reaction to the credit squeeze during the autumn now appears to be easing a little following recent interest rate reductions鈥�.

The share price rose 14% to 777.5p at the news.

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