Housebuilder expected to announce 63% fall in pre-tax profit in six month results out this Thursday
Analysts are predicting a change in tone from Persimmon when it announces its results for the six months to 30 June on Thursday.
The group is expected to announce pre-tax profit of about £105m, a 63% fall on the same period last year. Turnover is forecast to be 34% down at £998m.
Kevin Cammack, an analyst at Kaupthing, said: “The group has been criticised for not telling it as it is recently by making statements designed to create a sense of stability for the customer.
“People know how bad things are so there’s not a lot of point in hiding behind that anymore.”
The group has been criticised for not telling it as it is recently by making statements designed to create a sense of stability for the customer
Alastair Stewart at Dresdner Kleinwort said he expected news on land writedowns. He said: “We suspect the group may clarify its expectations of land writedowns of ‘tens of millions’.”
He added: “A serious deterioration of tone and an indication that its strategy would be put on more of a war footing would ring alarm bells across the sector in our view.”
Cammack added that the group would also be keen to reduce its £900m debt as soon as possible despite operating within its banking facilities.
He said: “There’s a fair bit of work to be done there. There will be a focus on the cash side rather than the profit side. The company needs flexibility in its balance sheet for when the land market picks up.”