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Persimmon revenues tumble but recovery signs shown

Hopeful of playing a big part in UK's recovery.

Persimmon has revealed that its half-year revenues slipped from £1.75bn to £1.1bn for the 6 months ending June 30th 2020.

However, in its trading update it revealed some promising signs despite the slip in revenues and a fall in new home legal completions from 7,584 to 4,900.

The promising signs demonstrated included:

  • An increase in the average selling price at £225,000 – up from c. £217,000 in 2019.
  • Forward sales of new homes c. 15% higher than last year – £1.86bn compared to £1.62bn.
  • Suggestions homebuyers are remaining resilient themselves with cancellations in line with normal levels.

Dave Jenkinson, CEO of the Housebuilder also highlighted that he is looking for a strong second half of the year due to the increased forward sales as well as having a healthy amount of cash:

“We enter the second half in a strong position, with work in progress well advanced, forward sales c. 15% ahead year on year, and cash holdings of c. £830m.”

Jenkinson is hopeful that Persimmon will have a big part to play in the UK’s recovery through the building of homes.

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