Shares in Persimmon (LON: PSN) were up almost 5% this morning after the group revealed a strong start to 2020.
In the half-year results, the housebuilding giant announced an average weekly increase in private sales by 49% thanks to an easing in lockdown restrictions.
In a statement, Persimmon recommended a 40p interim dividend.
Dave Jenkinson, Persimmon’s chief executive, said: “Despite the significant disruption, the Group’s preparedness, agility and strength ensured a robust first half performance with 4,900 new home completions and further good progress made on our customer care improvement plan.”
“The Group has had an excellent start to the second half with a c. 49% year on year increase in average weekly private sales rates per site since the start of July and a current forward order book of c. £2.5bn, a 21% increase on last year.”
“Our strong opening work in progress position and excellent build rate through the summer give us confidence in a positive second half outturn. We expect that by the end of September, we will have delivered c. 45% of our anticipated second half new home legal completions.”
“As a result of the continuing strong performance of the business through this challenging period, together with our cautious optimism on the Group’s prospects for the second half, we are pleased to announce that the Board is proposing a modest interim dividend of 40p per share. Further dividend payments this year will remain under close review,” he added.
As for the second-half of the year, the group said after the strong results it is positive for a second-half outturn.
Shares in Persimmon (LON: PSN) are trading +4.40% at 2.728,00 (1047GMT).