Persimmon sees strong demand for new builds
Group reports robust summer trading
THE YORK- BASED housebuilder Persimmon said it had recorded a strong third quarter, after its performance was boosted by “resilient demand” for new build homes.
Persimmon said that trading through the summer was robust, with sales rates remaining strong due to the availability of homes at an advanced stage of construction.
In a third quarter trading update, Persimmon said the average private weekly sales rates per site for the period was 38 per cent ahead of 2019.
Dean Finch, the group chief executive, commented: “Persimmon continues to perform robustly despite the significant challenges presented by the Covid19 pandemic and we are currently on course to deliver a good result for 2020.
“The health and safety of our colleagues, customers and communities remains our top priority and we have been carefully following each of the devolved Government’s measures to curb the spread of the pandemic.
“In England’s second lockdown, our Covid- secure sales offices, sites and manufacturing facilities are remaining operational, in line with Government guidance, as we continue to support our customers and deliver their new homes.
Mr Finch added: “In my first weeks as CEO I have been getting around the group to understand the business better, including the significant opportunities we have ahead of us. Throughout the
organisation, the team’s focus on quality and serving our customers has been impressive.
“Our commitment to helping to level up opportunities and to supporting our communities, through initiatives such as the Social Mobility Pledge, are more crucial than ever as we strive to deliver much- needed new homes across the country, and to support the UK economy’s recovery from the impacts of the pandemic.
“Persimmon is undoubtedly a strong market leader with an excellent management team and workforce, and significant high quality assets.
“The task in front of us is to continue to build a sustainable business in every sense – one that can maintain a strong financial performance whilst continually improving customer service, and fulfilling our important role in the economy, in our communities and for the environment.”
Persimmon said it had a strategy of careful management of the housing cycle through minimising financial risk and investing capital at the right time. Around 1,700 plots of land have been secured in the year to date.
The statement added: “Reflecting the group’s continuing strong performance, a further interim dividend of 70p per share will be paid on December 14, 2020, which together with the interim dividend of 40p per share paid in September, replaces the previously postponed 110p per share final dividend declared for 2019.”
Julie Palmer, partner at Begbies Traynor, said: “Help to Buy and the end to the stamp duty exemption are just over the horizon and because of this the latest news from Persimmon will be tinged with an element of wariness.
“In these turbulent times when lockdowns strangle the spending of consumers, and lenders exercise greater caution, Persimmon and all of those in the housebuilding sector may want to see continued help from central Government.”