Persimmon profits hit record £240m

Persimmon, the housebuilder, has made a record interim pre-tax profit of £240m as operating margins inched ahead to 23%.

Financial results for the six months to 30 June 2005 show turnover at £1.1bn, up from a figure of £1bn in the comparable period in 2004.

Duncan Davidson, chairman, said: “We remain optimistic for the business in 2005 and are well placed for 2006 and beyond.”

Persimmon has found the need for selective use of incentives and additional marketing costs as a result of a slowdown in demand, but this has been largely covered by its ability to minimise other cost increases.

Davidson anticipates the 23% margin figure holding up in the second half of the year.

Persimmon made biggest progress in its south division where it sold 3,100 homes at an average price of £179,000, slightly higher than the £176,000 figure in the same period last year.

The north division experienced the “most noticeable change in customer sentiment” and the completions tally of 2,300 represented a fall of 300. The priority was to maximise selling prices and protect margins and the move worked well – the average home sold for £167,000, up 12% on the 2004 figure.