Persimmon profits rise tenfold

24/08/2010

York-based housebuilder Persimmon has reported first-half pre-tax profits of £101.4 million, a tenfold increase from last year.
The company also recorded a major leap from last year's £16.7 million loss with underlying pre-tax profits of £39.4 million for the first six months of 2010.
Persimmon's revenues registered a rise of 27% to £776 million, with a growth of 16% in legal completions on home purchases. Its average selling price also increased by 8.6% despite a fragile housing market.
The firm posted the strongest underlying operating margin of 8% in the housebuilding sector, up from 1.6% seen in the first half of last year.
The group's chairman John White said: "Overall, whilst we currently remain cautious, we are optimistic about the future of our business.
"We have a strong balance sheet, excellent cash generation, national coverage and an experienced management team."
Boosted by improved performance, the company said it would be restoring the interim dividend, paying 3p per share.
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