The Courier & Advertiser (Fife Edition)
Strong showing from housebuilders
Housebuilder Persimmon reported a hefty rise in half-year profits as it said high employment levels are mitigating the impact of Brexit-fuelled inflation.
The group – which has new-build developments in Tayside and Fife – posted a 30% rise in pre-tax profit to £457.4 million in the six months to June 30. Revenue rose 12% to £1.66 billion. The average selling price of its homes rose 4%. Completion volumes increased 8% to 7,794 homes, and forward sales were 15% ahead at £2bn.
The group said healthy employment levels and a competitive but disciplined mortgage market had helped it to trade through a Brexit-led squeeze on consumer spending.
“The market remains confident,” said chief executive Jeff Fairbairn.
“Whilst we remain vigilant to changes in market conditions, we also recognise we are in a strong position to take advantage of opportunities that arise.
“We are looking forward to a good autumn sales season.”
Meanwhile, major Scottish housebuilder Springfield Properties has also reported a rise in revenues and profits.
The group generated turnover of £111m in the year to May 31 and a pre-tax profit up 31% at £6.7m.
It is pursuing major developments in Tayside, with ground just being broken at the enormous Bertha Park site in Perth and work continuing on the Dykes of Gray site on the western outskirts of Dundee.
The company said it had sold 48 homes during the year at Dykes of Gray, and total completions had risen to 56 of a potential 1,500.
Executive chairman Sandy Adam said: “I am pleased to report another year of strong growth, reaching the milestone of £100m revenue for the first time in our history.
“This has largely been due to the tremendous work carried out by each and every one of our 500 staff who have built high-quality and desirable affordable and private homes.”