Persimmon profits up in first half of 2015

Profit before tax and revenue have both increased.

British housebuilding company Persimmon Homes is celebrating after its latest half year results showed that revenue and profit before tax have both increased.

The Company’s Chairman said that these results “reflect strong trading, with solid revenue growth, continued improvement in operating profitability and a strengthening of the financial position of the business.”

The half year results incorporate the six months ended 30^th June 2015.

Results show that profit before tax is up to £272.8M, which represents a 31% increase from the 208.9M recorded in June.

In addition, revenue has risen to £1.33Bn from £1.2Bn. This is an 11% rise.

Further expansion is apparent in Persimmon’s underlying operating margins which have progressed to 20.5% from 17.7%, while the consented land bank increased by almost 5,000 to 92,404 plots.

With its 12,000 new homes built each year in upwards of 400 prime locations across the country, Persimmon is one of the UK’s leading housebuilders, with a commitment to high design, construction and service standards.

Those standards are why the Company is seeing such positive financial results and why Persimmon is so popular.

The half year results also showed that customer activity remained high in the six months to June 2015, with a strengthening apparent after May’s General election.

As well as the 11% increase in revenue, legal completions of 6,855 new homes increased by 7% in comparison with the records of 2014. The average selling price also went up and at £194,378, is 4% better than 2014’s figure of £186,970.

Group growth has been attributed to a continued commitment to investment in high quality replacement land.

Since this strategy commenced three years ago, Persimmon has invested £2.17Bn in land, resulting in 607 new sites being opened which includes 122 new outlets that opened in the first half of the year, which incorporate approximately 41,800 newly built homes delivered for customers.

In the long term, Persimmon will follow a strategy that will result in the growth of the regional businesses so they achieve their optimal scale based upon sustainable market share in their local markets.

Jeff Fairburn, Group Chief Executive, is confident that all long term goals set out will be achieved.

He said: “The performance in the first half of 2015 further demonstrates the results of the Group’s focus on successfully executing its operational objectives and the delivery of the ten-year strategic plan launched in 2012.

“We are confident that our long term strategic focus through the current cycle will continue to deliver strong returns for our shareholders.”

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