Persimmon H1 Profit Climbs On Higher Revenues - Quick Facts

(RTTNews) - British homebuilder Persimmon Plc (PSN.L) reported Tuesday a higher profit in its first half, as revenues were benefited by increased completions and selling prices.

For the fist half, the company's pre-tax profit was 132.9 million pounds, higher than last year's 96.5 million pounds. Underlying pre-tax profits, which excluded certain items, climbed 40 percent to 135.3 million pounds from 96.9 million pounds a year earlier. Underlying basic earnings per share increased 35 percent to 34.1 pence.

Net assets per share decreased to 616.6 pence from 625.7 pence last year, reflecting the capital discipline associated with the company's long term strategy and the first payment under the Capital Return Plan.

Fist-half revenue grew 12 percent to 899.9 million ponds from 806.7 million pounds in the prior year. Legal completions grew 7 percent to 5,022 units. The average selling price of new homes sold in the period increased 5 percent to 179,199 pounds, due to the mix benefit of an increased proportion of larger family homes.

Nicholas Wrigley, Chairman said, "During the first half of 2013 we have invested further in the business in support of increasing our future volumes. In addition to good growth in sales and profits we have also reached our target margin range of 15-17 percent eighteen months ahead of plan. Our focus remains on the delivery of our long term strategy and we are well placed to continue to make good progress."

Regarding its current trading, the company noted that from April 1, it experienced further momentum in the Spring sales season following the introduction of the Government sponsored "Help to Buy" measures. Since that date, weekly private sale reservation rate has been over 30 percent stronger than the prior year. The current order book, including legal completions since 1 July 2013, is now 21 percent up on the same point last year at 1.26 billion pounds.

Looking ahead, the company anticipates that Persimmon will continue to make good progress but we remain mindful of the wider economic challenges facing the UK economy.