Persimmon Interim: Persimmon homes UK’s largest homebuilder increased pre-tax profits by one per cent to £585m, on a turnover of £3.02bn. Operating margin increased to 21.8 per cent as a result of cost reductions and £50 million in synergy savings following the integration of Westbury.
Persimmon Interim: Legal completions were down by 4.8 per cent to 15,905 and average selling price was increased one per cent to £189,558. The order book was down slightly to £1.05bn from £1.3bn a year ago.
Chairman, John White said, “There was an underlying demand for new homes, but the market is going through a wait and see period. When confidence returns and sentiment improves we anticipate a return to a stronger market. In the meantime we remain cautious. However with an experienced management team, strong balance sheet and excellent land bank, we remain confident for the future.”
Persimmons homes results are reasonable for a challenging year. However the real concern is the uncertain outlook for the second half of 2008.
Editor: Simon Weston myfirsthomeltd.co.uk
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