Housebuilder Persimmon has reported a fall in revenue and pre-tax profits in what it says is a return to more normal trading patterns after a particularly strong 2021.
The York-based firm pointed to private sales being 8% up on pre-pandemic levels of 2019 as revenue for the first half of 2022 was £1.69bn, compared to £1.84bn in the same period last year. Pre-tax profits were £40.4m lower than 2021 at £439.1m.
Inflationary pressures driving up building costs were said to be largely offset by price growth with Persimmon's average house now selling for £245,597 - a £9,398 rise on the previous year. Investors were told the firm had completed 6,652 new homes in the six months to the end of June, versus 7,406 in the same time frame last year, as it worked to find new land after a buying pause three years ago.
Read more: 'Royal Residences' aim to be fit for a king as high end city living is honed in Hull
Planning challenges were also noted as Persimmon said it was on track to increase its number of sites by about 10% by the end of the year. Demand was said to be strong with a forward order book of £2.32bn.
Dean Finch, group chief executive, said: "Persimmon continues to perform well. We are making important progress in quality, service, land investment opportunities and efficiencies to build an even stronger business, while continuing to deliver the strong financial returns that Persimmon is renowned for. Demand for our attractively priced, high quality homes has remained robust, with our average private sales rates for the period being circa 1% ahead year on year.
"Our customer satisfaction score is currently 92%. We have some exciting new sites coming into the business at industry-leading margins, with a land replacement rate for the period of over 130% and expanded production in our own brick, tile and timber frame factories, is further enhancing our supply resilience and cost efficiency, enabling us to re-iterate our guidance of 14,500 - 15,000 legal completions for the full year.
"We are on track to achieve a circa 10% increase in our active outlets by the end of the current year as we work to rebuild our outlet position after a land buying pause three years ago and are tackling the on-going challenges in the planning system. We are stepping up proactive engagement with local authorities, enhancing our approach to developing attractive communities and raising the bar on design to help mitigate planning challenges. We continue to expect our volume delivery to be significantly higher in the second half of the year.
"Our combination of compelling affordability and high levels of service and build quality, coupled with our well-located sites provides a uniquely strong and sustainable customer proposition. It is by strengthening this proposition further that we will achieve our ambition of becoming Britain's best homebuilder for both customers and shareholders, consistently delivering high quality homes, excellent customer service and industry-leading financial returns."
READ NEXT:
