Persimmon is confident of delivering further growth in group operating profits in the second half of the year, with forward home sales up 12%.
The housebuilder is still frustrated by the planning system, however, and says that despite the ongoing improvements, “opening new development sites without undue delay continues to be one of the industry’s main constraints.”
The group continued: “Whilst we have successfully opened 80 of the 100 new sites planned for the second half of the year, our desire to modestly increase our overall outlet numbers remains a challenge.”
In its third-quarter statement published yesterday, the Persimmon Group expressed confidence that improved gross margins and tightly controlled overheads would deliver further growth.
One of UK’s biggest housebuilders and companies, Persimmon has around 375 development sites across the UK including Dundee, Perth, Doune and Larbert, Edinburgh and Glasgow.
The York-based group remains encouraged by the level of customer confidence in the UK housing market with visitor levels matching those of last year.
This was despite tough comparatives generated by strong growth in interest in Persimmon sites following the Government’s introduction of the Help to Buy measures in April last year.
A more traditional seasonal pattern to customer activity returned with reservation rates picking up with the onset of autumn.
Persimmon is fully sold up for this year but forward sales reservations are up 12% at £696 million.
The group reported robust selling prices and cancellation rates remaining low, but private sale reservation rates are about 2% lower than those for the same period last year.
Persimmon opened 80 of the 100 new sites planned for the second half of the year, but the desire to modestly increase overall outlet numbers remains a challenge.
The group has secured about 7,500 plots of land since July 1, with more than 4,000 plots being converted from the strategic land portfolio.
“We remain confident of delivering further growth in group operating profits in the second half of the year from both improved gross margins and tightly controlled overheads,” the company stated.
“With our new site openings, land recoveries continue to improve and with increased production volumes we are capturing further build efficiencies.”
Persimmon expects a substantial level of cash holding by the year end, even after allowing for the ongoing significant investment in land and work in progress.
Shares fell 14p to 1,444p.