Persimmon expects profits to be ‘modestly’ ahead of market expectations

Persimmon has published a trading update.
Persimmon has published a trading update.
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Housebuilder Persimmon expects pre-tax profit for 2018 will be “modestly” ahead of market expectations thanks to new developments it has made during the year.

The FTSE 100-listed company said group revenue for 2018 increased 4% to £3.74 billion compared to the year earlier, with new housing revenue up by 4% to £3.55 billion.

It said the UK housing market has gained from robust employment levels, low interest rates and a competitive mortgage market, which have supported customer demand.

Persimmon said while the “future performance of the UK economy is currently subject to increased levels of uncertainty the group is well positioned” due to its range of house types at affordable prices

across regions, high-quality land bank and conservative financial structure.

The company will give an update on the housing market for the early weeks of 2019 in its full-year results due on February 26.

The trading update added: “The group continues to develop its manufacturing capabilities with the aim of better supporting sustainable growth. Brickworks, our new brick manufacturing plant located at Harworth, near Doncaster, is now nearing optimal production levels. The construction of the group’s new roof tile manufacturing plant, Tileworks, is progressing well on the same site.

“We look forward to Tileworks commencing deliveries to the business in the second half of 2019. In addition, Space4, the group’s manufacturing facility for our insulated frame build-system, based near Birmingham, continues to make a valuable contribution to the group’s output.