Home News Persimmon annual profit set to be “modestly” ahead of market

Persimmon annual profit set to be “modestly” ahead of market

1
Persimmon annual profit set to be “modestly” ahead of market

Persimmon announced on Tuesday morning that it expected its annual profit to be “modestly” ahead of current market expectations.

Total group revenue was 4% higher than the year earlier, coming in at £3.7 billion. This compares to the £3.6 billion figure in 2017.

New housing revenues increased by 4% to £3.55 billion.

Additionally, legal completion volumes increased by 406 new homes, a 3% increase to 16,449, including private sales of 13,341 new homes.

Average selling price was roughly £215,560 for the year ended 31 December 2018. This price is 1% higher than the £213,321 recorded in 2017.

“The UK housing market has continued to benefit from robust employment levels, low interest rates and a competitive mortgage market, which has supported confidence and customer demand across the regions,” the house building company said.

The company has said that expects its pre-tax profits for 2018 to be “modestly” ahead of the current market consensus. Persimmon has benefited from the new developments opened throughout 2018.

The company concluded with a reflection on the current UK housing markets and the current economic uncertainty surrounding the UK’s departure from the European Union. Indeed, Brexit uncertainty has pushed UK house prices to a six-year low, as reported by Reuters.

“As we look forward to the 2019 spring season Persimmon is in an excellent market position. Whilst the future performance of the UK economy is currently subject to increased levels of uncertainty the Group is well positioned with its strong outlet network together with the availability of a range of attractive house types at affordable prices across the regions of the UK, supported by a high quality land bank and conservative financial structure.”

“We will give an update on our assessment of the housing market over the early weeks of 2019 when we announce our results for the year ended 31 December 2018 on Tuesday 26 February 2019.”

Amid a difficult climate for the UK property market, we took a look at whether London house prices would recover in the year ahead.

At 10:18 GMT today, shares in Persimmon plc (LON:PSN) were trading at -0.4%.