Builder's profits go through the roof

Persimmon plc, parent company of the York-based Persimmon Homes, has made a pre-tax profit of £28.1 million in the first six months of the year.

It is the highest profit recorded in any six-month period in the company's history - an increase of 20 per cent from the 1997 half-year profit of £23.3 million.

Up goes the increase in earnings - by 18 per cent to 11.8p per share compared to 10p in 1997.

Up goes the increase in the interim dividend by 3.1 per cent to 3.3p per share.

And the record rise was made despite fewer house sales - 3,117 compared to 3,194 in the first half of 1997.

The firm, which last year celebrated its 25th anniversary, is the UK's fourth largest housebuilder.

The interim results mean more good fortune for Persimmon founder and chairman Duncan Davidson and his wife, Sarah, an executive director.

They were jointly listed among the top ten richest northerners with personal fortunes amounting to at least £50 million.

Mr Davidson said: "These results have been achieved by the dedicated efforts of all our staff nationwide and they are to be thanked for their hard work."

In April this year, the company acquired the Scottish housing division of Laing Homes for £18.9 million, splitting its Scottish operations into two separate companies based in Edinburgh and Glasgow.

Mr Davidson said with current trading, sales and profit margins likely to remain at virtually the same level for the next six months he was confident the company's full year results would be equally good.

And Persimmon has already taken steps to avoid the Millennium Bug affecting its operations, said Mr Davidson.

He said: "In an area of vital concern for the near future, it is pleasing that all systems which operate the group's central computer facilities are now year 2000 compliant and we are continuing to monitor all our major suppliers on this issue."

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