Persimmon sees sales rise, remains cautious

6th Jul 2010 07:02

Housebuilder Persimmon said private sale reservations have softened around the time of the new government's budget proposals, though sales prices and margins have continued to increase."Since early May we have experienced the normal seasonal slow down in private sale reservations. We believe this was also due partly to the uncertainty created prior to the announcement of the new government's budget proposals," the group said."In the short period since the budget, sales have been in line with our expectations," it added.Turnover for the six months to 30 June was up by 26% at around £785m. The group expects operating margins for the first half, before exceptional items, to have increased to approximately 7.5% (H1 2009: 1.5%).Total sales for the year, including legal completions to date, contracted properties and forward reservations are about £1.5bn (30 June 2009: £1.32bn).Legal completions increased by over 16% to 4,657 homes (H1 2009: 4,006). Average selling price was about 8% ahead at £168,500 with underlying price growth of around 3% since 1 January. "We are continuing to invest in new site openings in readiness for the normally stronger housing market in the autumn, however, we remain cautious in our investment decisions until mortgage availability improves further," said the group. "We have made good progress with our planned strategy of debt reduction and margin improvement. Whilst we remain cautious, we have a strong platform for profit growth as and when the housing market improves further."