Profits Up, Shares Down At Persimmon Homes

Profits have spiked at the biggest housebuilding company in Scotland, the Scotsman has reported.

But despite the two-thirds leap in halftime profits at Persimmon Homes, shares have fallen due to faltering sales growth.

The company revealed yesterday that underlying pre-tax profits rose to £98.7 million in the six months to end-June from £59.7m. Revenues lifted 13 per cent to £806.7m.

Persimmon said it had shrugged off tough mortgage lending conditions by building more homes in affluent areas.


The company's shares fell 8p to 697p, although overall in the past year they have leapt nearly 90%.

The company's northern division volumes, including Scotland, were up 21 per cent at 1,080 homes. New developments are to open over the coming months, including Dumfries, Dundee, Dalkeith and Paisley.

Nicholas Wrigley, group chairman, said: "We expect conditions in the UK housing market to remain challenging reflecting the wider issues within the economy."

Persimmon pledged earlier this year to return £1.9bn to shareholders over the next nine years to 2021. The company said it remained on track to make the first renewed dividend payment of 75p per share in June 2013.

Mr Wrigley said he believed that, overall, the group had made an excellent start to the year, and that in current trading selling prices have remained stable.

(NE)