Persimmon says new strategy paying off

City A.M. Reporter
British housebuilder Persimmon said it had made an excellent start to its new strategic plan by completing more new homes, attracting more viewers and selling them for a higher fee, giving it confidence for the full year.

Britain's largest householder by market value followed other property developers by saying that market conditions had been relatively stable despite sentiment being hit by the continued weakness in the wider economy.

The group legally completed 4,712 new homes in the first six months of 2012, up six per cent on the prior year, while cancellation rates remained in line with last year, sending turnover up 13 per cent to £805m.

The average selling price was seven per cent ahead year on year at £171,400 due to a greater proportion of traditional family homes being sold.

The group has also improved its margins and increased its cash generation, allowing it to invest in new land.

"The group's performance in the first half of the year represents an excellent start in the delivery of our new long-term strategic plan," it said.

"Whilst market conditions have been relatively stable during the first half of the year, sentiment within the UK housing market continues to be impacted by the continued weakness in the wider UK economy.

"However, we remain confident that we will be able to operate successfully in the current market and achieve our strategic objectives."