PERSIMMON, the York-based housebuilder, today unveiled a massive surge in half-year profits and predicted: "There's more where that came from."

With demand for new housing fuelled by low interest rates, turnover for the six months to June 30 soared from £698.1 million to £820 million, while operating profits before one-off costs rose from £100.2 million to £134.2 million.

The Persimmon success story is expected to continue, with forward sales for the second half-year now around £800 million and the group's land bank exceeding 52,500 plots, more than four years' supply.

Chairman Duncan Davidson, who launched Persimmon on the Stock Exchange in 1985, said he was confident of reporting an "excellent" performance for the year as a whole.

He added: "The housing market remains strong and affordability is good. Visitor levels are high with robust demand for new homes exceeding supply. The outlook for the housing market is positive, with interest rates set to remain at low levels."

Last year Persimmon, which has its HQ in Fulford, received a boost after completing a £559 million takeover of rival Beazer. This had initially diluted the group's operating margin but chief executive John White said today that it had now been rebuilt and operating margin for the first half was 16.4 per cent.

Updated: 11:52 Tuesday, August 27, 2002