Persimmon report profit rise and robust demand

Housebuilder Persimmon has reported a 29% jump in first-half profits and said customer demand has been robust.

Housebuilder Persimmon has reported that following the Brexit vote, there has been a 29% jump in profits and customer interest has been robust, with pre-tax profits in the six months to the end of June at £352.3M. Revenue rose 12% to £1.3Bn.

Nicholas Wrigley, Persimmon’s Chairman, said: “While the result of the EU referendum has created increased uncertainty, the news was quickly digested by our customers. Customer interest since then has been robust with a strengthening of visitor numbers to our sites compared to the same period last year.”

Following the Brexit vote, economic uncertainty increased, with share prices in property companies falling drastically, however since the Bank of England cut interest rates, shares have jumped again.

Despite economic uncertainty, visitors to Persimmons site were up 20% year on year.

Wrigley reported customer cancellations for viewings in the first week following the referendum rose, however they are now running slightly lower than a year ago.

Rising prices, economic growth and the government’s help-to-buy scheme has seen housebuilders boom over the last three years.

Financial Director, Mike Killoran said: “Given the interest we are seeing on the sites from visitor traffic and people genuinely wanting to buy we can see no reason why we wouldn’t see that [autumn] seasonality continue. All the feedback we are getting from sites is that given the market we are in and the product we are offering … there is a great desire to buy.”

Persimmon branded properties rose by 6% to an average of £206,334, while Charles Church homes rose by 16% to £317,827. The company said the increase in the average value for Charles Church properties was a reflection of its focus on higher value properties in premium locations.

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