Housebuilder Persimmon (LON: PSN) says interim revenues declined although profit will be slightly higher than expected. However, planning delays will further hit volumes in the rest of the year and there are set to be small downgrades in pre-tax profit forecasts.
The share price had already fallen by around one-third this year and it declined a further 4.1% to 1789p.
Completions were just over 10% lower at 6,652 in the first half. Revenues fell from £1.84bn to £1.69bn, although forward sales were slightly higher at £1.87bn. the group is 75% forward sold for the year. House price rises are offsetting cost inflation of materials and labour. Demand for homes also remains strong.
The guidance on full year completions is between 14,500 and £15,000, which is 3%-6% below the Peel Hunt forecast. Operating margins are likely to be lower. That could reduce existing forecasts by up to 5%.
Cash
Buying additional land and paying £399m in dividends has reduced the cash pile, but net cash was still £780m at the end of June 2022. There were 8,800 plots added during the period.
A further 110p a share special dividend will be paid on 8 July but should still leave net cash at more than £400m.
