Persimmon Interim Results Are Flat

Persimmon Interim Results Are Flat Persimmon UK’s largest homebuilder increased pre-tax profits by one per cent to £585m, on a turnover of £3.02bn. Operating margin increased to 21.8 per cent as a result of cost reductions and £50 million in synergy savings following the integration of Westbury. Legal completions were down by 4.8 per cent to 15,905 and average selling price was increased one per cent to £189,558.

The order book was down slightly to £1.05bn from £1.3bn a year ago. Chairman, John White said, “There was an underlying demand for new homes, but the market is going through a wait and see period. When confidence returns and sentiment improves we anticipate a return to a stronger market. In the meantime we remain cautious.

However, with an experienced management team, a strong balance sheet, and an excellent land bank, we remain confident for the future.” Persimmon results are reasonable for a challenging year. However the real concern is the uncertain outlook for the second half of 2008.

Article Source: http://www.debtfinancearticles.com.

About the Author:
Editor: Simon Weston http://www.myfirsthomeltd.co.uk/ Blog: http://www.myfirsthomeblog.com/