But housebuilding giant expects profit in year to be better than expected
Persimmon completed 6,652 homes in the six months to 30 June which it says was “slightly lower” than it previously expected.
The housebuilding giant, in a half-year update this morning, said its completions fell 10% from the 7,406 recorded for the same period the previous year.
It said the figure was lower “due to further delays in the planning system and material and labour shortages”.
It added: “Rising energy prices, supply constraints on certain materials and increased labour costs are driving upward pressure on total build costs.”
Turnover for the period also dropped from £1.84bn to £1.69bn.
Despite the restricted build rates, Persimmon said it anticipates its half-year profit to be modestly above expectations due to “strong demand and positive pricing conditions”.
It said: “Rising energy prices, supply constraints on certain materials and increased labour costs are driving upward pressure on total build costs.
“Currently, house price inflation is continuing to offset these increases. As a result, we expect to deliver a housing gross margin that is slightly ahead year-on-year.”
The group’s average selling price increased by 4% to £245,600 which it said was due to strong demand a reduction in the proportion of homes sold to housing associations.
No comments yet