Persimmon share price: Housebuilder reports strong first half

Housebuilder Persimmon (LON:PSN) said in an interim update this morning that it had traded “well” in the first half of the year, as demand remained resilient even in the run-up to May’s general election.

The company reported that new home legal completions rose seven percent to 6,855, while revenue was up 12 percent to £1.34 billion. The average selling price increased by four percent to £195,000. The FTSE 100-listed company also said its forward sales volumes to the private market were up by 12 percent in the half at 4,606 new homes, with an average selling price of £213,000 – four percent higher year-on-year. Persimmon’s total forward sales value at the end of June was £1.36 billion, up 15 percent. The property group noted that demand had been buoyed by “an increasingly competitive mortgage market over the last six months, together with continued growth in employment and some welcome improvement in disposable incomes”.
In February, Persimmon was one of the leading British housebuilders to warn of uncertainty for the housing market ahead of the general election, with planning hold-ups slowing development. However, in its statement today, the company said: “The Group has traded well through the first half of 2015. Customer sentiment remained resilient through the period running up to the General Election on 7 May and confidence has improved subsequently.”
Despite the upbeat statement, Persimmon’s share price opened slightly lower amid a wider decline on the stock market today. As of 08:19 BST, the housebuilder — which is due to release its first-half results on August 18 — was trading 0.64 percent lower at 2,003.08p.
As of 08:45 BST, Thursday, 02 July, Persimmon plc share price is 1,999.00p.