Persimmon (LSE: PSN) stated its half year revenue and Profit fell significantly in a tough economic climate, but said housing demand remains resilient.
The housebuilder said Thursday its profit for the six months to 30 June sank 66% to £151 million from £439.7 million last year. Revenue dropped 30% to £1.19 billion from £1.69 billion previously.
The number of homes built declined 36% to 4,249 from 6,652 in the first half of 2021, impacted by Higher Mortgage Rates, the end of the Help to Buy scheme, and market uncertainty.
“Against a backdrop of higher mortgage rates, the removal of Help to Buy and significant market uncertainty, Persimmon has delivered a robust sales rate excluding bulk sales,” said CEO Dean Finch.
Cash reserves dropped 54% to £357 million at the end of June. But Persimmon declared an interim dividend of 20 pence per share, resuming payouts after none last year.
The firm said its current order book stands at £1.6 billion, down 30% year-on-year. However, private sales specifically have risen 83%, highlighting resilient underlying demand.
“Persimmon’s focus on discipline, cost control and margin protection while enhancing our operational capabilities continues,” stated Finch. The company remains on track to meet full-year profit expectations.
Persimmon shares climbed over 3% in London morning trade as investors welcomed signs of robust housing demand despite pressures on volumes and pricing.
