Persimmon share price: Housebuilder updates on recent trading

on Jul 5, 2016
Updated: Oct 21, 2019

Persimmon (LON:PSN) has updated investors on its trading performance this morning.

**Highlights from the company statement:**
Trading through the first half of the year has been strong. We have maintained our focus on maximising the value created from the capital employed in the business in support of controlled growth to meet market demand. The Group increased its legal completion volumes by 6% to 7,238 new homes in the period (2015: 6,855). With the average selling price of c. £205,500 having increased by 6% (2015: £194,378), Group revenues of £1.49bn were 12% ahead of last year (2015: £1.33bn).

As anticipated, low borrowing costs and healthy labour market conditions continued to support consumer confidence through the first half of the year. Mortgage approvals for home purchase in the first quarter of 2016 were 18% ahead of the prior year. Approvals remained ahead of last year for the April/May period despite a period of increasing uncertainty leading up to the EU referendum and notwithstanding strong prior year comparatives in the period following the UK election in May 2015. We continued to take good levels of sales through May and June with our private sales rate being c. 1% ahead year on year.
It remains too soon to judge the effect that the result of the EU Referendum will have on the UK new homes market. We believe that market fundamentals remain strong, supported by long term unfulfilled demand, and that the UK housing market will continue to provide good opportunities for those companies with the right strategic focus and the balance sheet strength to navigate future changes in trading conditions. We believe our focus on building traditional family housing in attractive locations for all purchasers from first time buyers to home movers will continue to attract customers in good numbers. The Group remains committed to building the new homes across the country that Britain needs.

We remain confident in the Group’s prospects based upon our long term strategy, the hard work and dedication of all our team, the Group’s excellent forward orders, strong land bank and robust financial position.

We will announce our Half Year Results on Tuesday 23 August 2016.
As of 07:13 BST, Tuesday, 05 July, Persimmon plc share price is 1,435.00p.


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