Caution key for Persimmon as debt falls

The York-based company is the only remaining major UK housebuilder not to tap shareholders for cash during the downturn.

Persimmon said net debt stood at about 270m at the end of 2009, more than half the 599m figure a year earlier and significantly down on the 1.2bn level of April 2008.

"This has been achieved by focusing closely on working capital management and strict cash control disciplines," said the group.

Persimmon added it legally completed the sale of 8,976 new homes over the year, generating turnover of about 1.4bn. That compared to 10,202 sales in 2008, which generated 1.8bn revenue.

Persimmon benefited from a stronger housing market in the second half of 2009, with 4,970 sales compared to the 4,006 completions achieved in the first half.

"Whilst we will remain cautious until mortgage availability and the general economy improves, we have continued confidence in the long term future of the UK housing market," Persimmon said.

The group added forward sales into 2010 are about 40 per cent ahead of last year at about 640m. "This gives us a good start to the year, although as usual we await the Spring selling season with keen interest," Persimmon said.

The group said it continues to invest in both new and existing developments and new land acquisitions, focusing on "good opportunities at attractive margins".

It acquired and agreed terms to acquire about 3,000 plots during late 2009, with more than 80 per cent of these in the south.