Persimmon confident Brexit will not halt strong performance

1315

Housebuilder Persimmon has expressed confidence that the vote to leave the EU will not impact its performance

Unsurprisingly the run up to the EU referendum saw a great deal of uncertainty for the construction sector. Markit/CIPS showed in June a fall in construction output, with growth dropping at the fastest pace since the financial crisis. The index fell from 51.2 in May down to 46.0 in June. Figures below 50 indicate a contraction in the sector.

However, housebuilders and property firms are increasingly upbeat about the future. Earlier this week, Kier Group revealed it has seen little impact on its business, with trading continuing in line with expectations.

Now, major housebuilding firm Persimmon Homes has also said it is confident the vote will not impact its plans for growth nor its performance.

In its latest trading update to the city, Persimmon said the “market fundamentals remain strong, supported by long term unfulfilled demand.”

The firm added: “The UK housing market will continue to provide good opportunities for those companies with the right strategic focus and the balance sheet strength to navigate future changes in trading conditions.

“We believe our focus on building traditional family housing in attractive locations for all purchasers from first time buyers to home movers will continue to attract customers in good numbers.

“The Group remains committed to building the new homes across the country that Britain needs.”

According to the figures, Persimmon saw legal completion volumes during first half trading rise by six per cent to 7,238 homes. Group revenues of £1.49bn were 12 per cent ahead of last year.

The firm said it expects the first half operating margin to be ahead of the figures seen in the second half of 2015, which stood at 23.0 per cent.

Furthermore, Persimmon has a number of projects in the pipeline, with 100 new sites set to see work start during the latter part of this year, and some 7,100 new plots acquired.

As a result of its successes, Persimmon said it expects to return £9 per share to shareholders by the end of 2021.

Persimmon said: “We remain confident in the Group’s prospects based upon our long term strategy, the hard work and dedication of all our team, the Group’s excellent forward orders, strong land bank and robust financial position”

LEAVE A REPLY

Please enter your comment!
Please enter your name here