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Persimmon (LON:PSN) improved its pre-tax profits for the six months ended 30 June by 13% to £516.3 million as both the number of homes sold and average prices continued to rise. Underlying margins on new house builds also increased by 210 basis points 29.7%.
Management said that consumer confidence in key markets was robust and that it expects the usual seasonal increase in demand towards the end of the summer. Management also expects cash generation to remain strong based on current development projects, while the longer run prospects will be impacted by UK government policy.
Chief Executive Jeff Fairburn commented that: “These strong results reflect the continued successful delivery of the Group’s long term strategy and our commitment to meeting customer demand in each of our 30 regional markets across the UK.
“We have continued to experience good levels of customer interest in our housing development sites as we trade through the quieter summer season. Customers are continuing to benefit from a competitive mortgage market and confidence remains resilient based on healthy employment trends and low interest rates. Our forward sales are 6% ahead of last year at £2.12bn which places the Group in a strong position for the second half of the year.”
Shares in Persimmon were 2,455p at 12:45 BST, up by 11p from this morning’s open.