YORK-BASED national housebuilder Persimmon has today announced strong half-year results - despite the impact of Brexit.
It said that in the six months to June 30 pre-tax profit increased by 29 per cent to £352.3 million, compared with £272.8 million in the same period last year.
Revenue was up 12 per cent to £1.49 billion compared with £1.33 billion in 2015, and legal completions had increased by six per cent to 7,238 new homes sold as against 6,855 in the same period last year.
The average selling price of £205,762 was also up by six per cent, from £194,378.
Persimmon secured 7,108 plots of new land in the period, bringing its consented land bank to 93,519 plots.
Jeff Fairburn, group chief executive, said: "Persimmon’s robust trading performance in the first half of 2016 was driven by our continued focus on meeting market demand to deliver controlled sustainable growth. The group’s strong cash generation has supported further disciplined land investment embedding value for the future.
“While the result of the EU referendum has created increased economic uncertainty, customer interest since then has been robust, with visitor numbers to our sites around 20 per cent ahead year on year.
"Our private sale reservation rate since July 1 is currently 17 per cent ahead of the same period last year. The group is now trading through the traditionally slower summer weeks but customer demand remains encouraging and we anticipate a good autumn sales season.
“We are confident that our long-term strategic focus will continue to deliver strong returns for our shareholders.”
Chairman Nicholas Wrigley said there had been a 'modest' rise in cancellations following the Brexit vote, but the rate soon returned to normal, adding: "Market conditions through the first half of 2016 were positive."
He said average selling prices had increased year on year for both the group’s private sale brands, with Charles Church seeing a 16 per cent rise to £317,827. The group’s target was to achieve optimal sustainable scale for each of its 28 housebuilding businesses in their local markets.
"Whilst the result of the EU referendum has created increased uncertainty, the news was quickly digested by our customers. Customer interest since then has been robust with a strengthening of visitor numbers to our sites compared to the same period last year, visitors per site per week being about 20 per cent ahead year on year.
"After a modest increase in the week following the referendum result, cancellations have returned to normal levels and are currently running slightly lower than the same period last year. As usual we continue to monitor market activity closely whilst also reviewing broader external conditions to ensure our actions remain disciplined and aligned with our strategic objectives."