HUGE profits have yet again been announced by York-based Persimmon plc.

Pre-tax profits for the six months to June shot up by 16 per cent to £271.5 million, confirming the group as the biggest house builder in Britain.

It is the result of a massive growth spurt in completed homes - 8,226 of them - an increase over the first half of last year of 38 per cent.

Interim turnover also increased - from £1.093 billion last year to £1.550 billion this year. Earnings per share ballooned 15 per cent to 64.4 pence.

The new North division created from the restructuring of the group, which has its base at Persimmon House, Fulford, completed 1,912 homes over the six months at an average selling price of £169,432 - slightly more than last year.

All this was in spite of Persimmon Plc buying up house builder Westbury for £664 million, plus acquiring its debt of £422 million. It meant rationalising the enlarged business with the closure of eight offices and the loss of about 550 jobs.

John White, Persimmon's chairman, said that before the acquisition, Westbury's operating margin was 13.9 per cent and in decline.

Afterwards, the combined business brought it to 19.9 per cent - "at the top end of industry levels."

Mr White said sales reservations and revenues were ahead of last year. Total sales this year, including completions, were at a record £2.9 billion.

On top of this about 120 new housing projects were planned to open over the next three months, at a time when sales volumes usually increase, following the summer months.

"We do not, however, expect to see significant selling price increases above those already realised this year. Therefore we are redoubling our efforts to keep increases in build costs and overheads to a minimum."

Keith Saunders, regional chairman for Persimmon Homes Yorkshire, said: "The opening of new developments has seen the company achieve good sales in July and August, traditionally a quiet period in the house building calendar.

"Ongoing planning restrictions imposed by the government continue to put constraints on the number of new homes under development and this, combined with pent-up demand, is helping to ensure visitor levels and reservations remain buoyant."

Developments in the region include projects at Barlby, Northallerton, Ripon, Selby, Thirsk and York.