Persimmon share price: Housebuilder reports 33% revenue growth

on Jul 2, 2014
Updated: Apr 9, 2020
Listen, Wednesday, July 2: Persimmon (LON:PSN) has updated the market on its trading performance for the six months to June 30, 2014.

The housebuilder said in a statement today, ahead of its half-year results, which will be released on August 19, 2014, that it had continued to benefit from the recovery in the UK housing market. It sold more houses and achieved higher prices, although its forward sales revenue growth had slowed from the first-quarter.
Persimmon’s total revenues increased by 33 percent to £1.2 billion in the first half of the year and the group’s average selling price increased by four percent to £186,000 from a year earlier, due to a continued increase in the proportion of larger family houses in the sales mix.

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The FTSE 100-listed housebuilder — which legally completed 6,408 new homes, up 27 percent from 5,022 year-on-year – said that customer demand for “good quality housing in attractive locations” remained firm across all its regional markets.
Total forward sales revenue stood at roughly £1.18 billion, 28 percent higher than the £0.92 billion last year, but down from the 35 percent growth seen in the first quarter (Persimmon share price: Housebuilder posts upbeat start of year).

Persimmon has around 4,100 new homes sold forward into the private sale market, which is 29 percent ahead year-on-year, with an average selling price three percent higher at around £204,600. It opened 90 new sites in the first half of the year and plans to open approximately 100 new sites during the second half.
Looking ahead, Persimmon said: “With the gradual improvement in performance of the wider UK economy confidence in our regional markets across the UK remains positive as we enter the traditionally slower summer weeks.”

**UK house prices on the up**
Persimmon’s trading update was released on the same day as Nationwide reported that UK house prices had increased by one percent in June and were 11.8 percent higher year-on-year. The average price of a property in the UK is now £188,903 compared to £186,512 in May. In June 2013, the average price was £168,941.
The mortgage lender remarked that in seasonally adjusted terms, house prices reached their 2007 peak in the second quarter.

Nationwide said the price of a typical property in London reached the £400,000 mark for the first time, with prices in the capital now around 30 percent above their 2007 peak.
**Persimmon share price volatile**
Persimmon’s share price has been swinging between gains and losses this morning. After opening more than 0.6 percent higher, the stock shed the gains and by 09:27 BST it had lost 0.44 percent to 1,292.30p.
Of the 28 analysts projecting 12 month price targets for Persimmon for the Financial Times, the median target is 1,450.00p, with a high estimate of 1,710.00p and a low estimate of 1,218.00.
**As of 09:13 BST, buy Persimmon shares at 1,299.00p.**
**As of 09:13 BST, sell Persimmon shares at 1,297.00p.**


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