Housing profits up for Persimmon

Persimmon, the first housebuilder to announce its interim results for the first half of 1998, has declared a higher-than-expected pre-tax profit of £28 million, 20 per cent up on the £23 million posted last year.

Speaking on Monday, Persimmon's chairman Duncan Davidson said: "I have confidence in our results for the full year."

Persimmon's interim results (six months to 30 June 1998) showed turnover ahead at £280 million (£260 million), achieved on 2 per cent fewer completions at 3,100. Davidson announced six months ago that Persimmon would chase maximum profit per house rather than increased volume. The housebuilder also lifted operating profit from 11.4 per cent to 12.8 per cent and is now making £9,009 per unit, well ahead of the figure of £7.300 in the first six months of 1997.

Persimmon bought the Scottish housing division of Laing homes for £19 million in April and subsequently split its Scottish operations into two separate companies, based in Edinburgh and Glasgow.

Davidson said that land prices continue to rise, partly as a result of planning delays. Persimmon has strengthened the size of its owned and controlled landbank to 28,000 plots (27,500) at "acceptable prices" and has agreed terms to purchase a further 2,700.

Brian Taylor, finance director, will become a non-executive board member in April 1999. Mike Killoran, who joined Persimmon two years ago, will then move into Taylor's post.