Full-year trading update suggests minimal post-Brexit vote impact
Companies: Persimmon Plc
One of Britain's largest housebuilders Persimmon has released a bullish full-year trading update to 31 December, saying revenues will be 8% higher year-on-year, with completion volumes up 599 to 15,171 (14,572 FY15).
The Group said its average selling price had increased by 4% to over £206k (£199,127 FY15), with strong sales reservations through Q3 and Q4, and healthy customer demand for new homes.
"Buying a new-build home remains a compelling choice supported by competitive mortgage offers which continue to make a new home purchase very affordable."
Persimmon's sales rate for H2 was 15% higher than in the prior year, and completion volumes were 695 higher than in H1.
Management stressed it had been focusing on disciplined growth to achieve sustainable market share, a wise strategy considering the uncertainty in the UK housing market this year.
The Group opened 255 new development sites during the year and acquired more than 18,000 new plots of land in 83 locations. Its cash balance sits at £913m, up £350m on 2015.
Shares in Persimmon rose 6% in early trading on Thursday, taking the FTSE 100 to new record highs.
