Profits up despite challenges in market

Aug 22 2007 by Alistair Houghton, Liverpool Daily Post

HOUSEBUILDER Persimmon Homes has posted better-than-expected profits despite a “challenging” housing market in areas including the North West.

The York-based group said tight cost controls helped it report half-year pre-tax profits of £281.1m, up 9.8% on the same period last year and better than the £276m forecast by analysts.

Persimmon, which operates the Charles Church brand, said market conditions had been tough after a spate of interest rate rises and amid the traditionally quiet summer months for the housing sector.

Planning restrictions had added to difficulties in the six months to the end of June, but the group said it was optimistic the market would see its seasonal pick-up in the autumn.

The group said it had already achieved 85% of its full-year sales target and that forward sales for the remainder of the year were ahead of 2006.

Persimmon’s regional divisions continued to show a mixed performance, with the North, Midlands and North West experiencing more subdued growth than areas such as Scotland and the South West.

Persimmon Homes (North West) is based in Warrington and employs 125 people.