House-builder profits increase as demand for new houses surges

20 - 08 - 2013

There have been signs of growth in the construction industry lately, the most recent being house-builders, Persimmon’s announcement of increased profits.

The company reported a 39 per cent increase in its pre-tax profits to £132m in the first half of 2013 from £94.8m last year as demand for new homes rises.
It completed 5,022 new homes in the first six months of the year, an increase of 7% when compared to the same period in 2012 when it completed 4,712.

It spent £236m acquiring new land, up from £142m last year, the total number of sites owned by the company now reaching 70,716.

The company said that the increased availability of mortgage credit and the introduction of the government’s Help to Buy scheme had aided the firm’s growth.

Chairman, Nicholas Wrigley greeted the company’s recent growth with cautious optimism.

‘We anticipate that Persimmon will continue to make good progress, but we remain mindful of the wider economic challenges facing the UK economy,’ he said.

He added that the company will continue to concentrate on ‘the basics of good house-building to deliver further improvements in the performance of the business’ in the second half of the year.

Persimmon intends to start construction on 85 new sites before the end of the year and is building on all sites where it has implementable planning consent. The plans are expected to ‘creat[e] many new jobs’. 






Foremans LLP Umberlla
Foremans LLP