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ANALYST VIEWS: HOW SIGNIFICANT IS PERSIMMON’S UPTURN?

RACHAEL WARING | PANMURE GORDON
“These figures are pretty good and helped by the fact that Persimmon is in a position where it can write up the value of its landbank. However, for the housebuilding market as a whole things don’t look so good, with uncertainty over the election and in the economy as a whole. We are only predicting two per cent industry growth.”

TOM GIDLEY-KITCHIN | CHARLES STANLEY
“ The results were pretty much in line with expectations – marginally lower on revenues and operating profit, but a slightly better than expected interest charge led to marginal earnings outperformance before exceptionals (just profitable rather than just lossmaking). In addition, the comments on current trading were consistent with those from Barratt last week.”

JONATHAN JACKSON | KILLIK & CO
“The outlook statement is understandably cautious and the group reiterates the almost standard rhetoric of recent housebuilder statements, highlighting that a continued recovery hinges on the availability of mortgage credit. However, forward sales carried into 2010 of £637.8m are up from c. £500.0m as at 16 November 2009, and the total order book stood at £8,97.9m.”