Persimmon deliver ‘strong trading performance’

Persimmon deliver ‘strong trading performance’
Credit: Neil Hall/Reuters

Yorkshire homebuilder Persimmon has put in a “strong trading performance” with a trading update this week revealing a rise in revenues.

For the year ended 31 December 2018, the housebuilder saw total group revenues rise by 4% on last year to £3.74 billion.

New housing revenues were also up 4% to £3.55 billion compared with last year’s £3.60 billion.

The rise in results were supported by the current strength of the UK housing market which, despite Brexit, Persimmon said “has continued to benefit from robust employment levels, low interest rates and a competitive mortgage market, which have supported confidence and customer demand across the regions”.

Persimmon said that its cash generation “remains strong” with balances of £1,048 million held at 31 December 2018 compared with last year’s £1,303 million.

It added that it anticipates its pre-tax profits for 2018 will be “modestly ahead of current market consensus, having benefitted from the new developments we have opened through the year”.

The housebuilder continues to develop its manufacturing capabilities with the aim of “better supporting sustainable growth”.

Brickworks, its new brick manufacturing plant located at Harworth, near Doncaster, is now nearing optimal production levels.

Persimmon said that the construction of its new roof tile manufacturing plant, Tileworks, is “progressing well” on the same site. Deliveries from the plant will commence in the second half on 2019.

In addition, Space4, the Group’s manufacturing facility for its insulated frame build-system, based near Birmingham, continues to make a “valuable contribution” to the Group’s output.

Persimmon said that as it its in an “excellent market position” for the spring 2019 season.