Persimmon chief executive John White believes the housebuilder will have to increase in value by £500m if it is to break into the FTSE 100.
The company's market capitalisation is currently about £1.5bn, meaning that Persimmon is just outside the largest 110 companies in the UK. White said: "We're about 114th at the moment, so we're probably about half a billion away from the FTSE 100."

But White insisted that it would not buy a rival housebuilder simply to make the breakthrough into the top 100. He said: "There continues to be speculation about this, but we're not in a rush. There's plenty of scope to grow organically."

White pointed out that consolidation is beneficial in housebuilding – in 2001, Persimmon bought Beazer for £612m. He said: "The deals done clearly show that there are synergy benefits. There's definitely an advantage to being a major player."

We’re not in a rush. There’s plenty of scope to grow organically

John White, Persimmon chief executive

White made the comments after announcing of the company's results for the six months to 30 June. Profit before tax was £146.3m, up from £111.8m in the same period last year.