Persimmon posts 16 percent rise in H1 pre-tax profits

Persimmon posts 16 percent rise in H1 pre-tax profits

	Published : Tue, 22 Aug 2006 12:10 By : Cedric Benson Print this Story

LONDON - Housebuilder Persimmon PLC today reported first half profits that were higher than analysts' expectations and maintained a good outlook for the rest of the year despite the increase in interest rates by the Bank of England.

"We do not expect to see significant selling price increases above those already realized this year. Therefore we are redoubling our efforts to keep increases in build costs and overheads to a minimum," Persimmon said today in a statement. "The high level of sales already achieved puts us in a healthy position to achieve our volume expectations for the full year."

The group said pre-tax profits for the six months ending June stood at £271.5 million before one-off items as compared with £234.9 million at the same time last year. This is an increase of 16 percent and is mainly attributed to the group's acquisition of Westbury in January. Earnings per share also shot up by 15 percent to 64 pence, while turnover was up 42 percent to £1.5 billion as compared with £1.1 billion reported at the same time last year.

The integration of Westbury, which was bought for £664 million, has been completed six months ahead of schedule, Persimmon said. The group said its sales for the year are a record £2.9 billion till date and that it had 120 outlets ready for opening in the next three months.

“The integration of Westbury has been completed ahead of expectations and the group is well placed to take advantage of a strong and stable housing market," said Executive chairman John White. “Visitor levels to our sites remain good whilst volumes of sales reservations and revenues are ahead of last year on a like for like basis. Currently total sales revenues for 2006 including completions to date are at an all time high of £2.9bn.”

Persimmon has increased the half-year dividend by 15 percent to 13.8 pence per share from 12.0 pence a year ago.