Persimmon completions approaching pre-pandemic levels
Persimmon said today it remains on track to increase the number of new home handovers compared to last year with completions in the first half of 2021 approaching those of the first half of 2019.
Similar volumes are also expected in the second half.
In a trading update for the period from 1 January 2021 to date, the housebuilder said customer enquiry levels remained encouraging throughout the period and its average private sales rate for the current year to date is not only well ahead of 2020, but is also around 17% ahead of 2019.
Persimmon’s balance sheet and liquidity remain robust. The group held £940m of cash at 23 April 2021 with deferred land commitments of approximately £90m to the end of the current year. In addition, the Group has an undrawn £300m Revolving Credit Facility which has recently been extended, having a five-year term out to 31 March 2026.
Dean Finch, group chief executive, said: “Persimmon has made a strong start to the year with current forward sales 23% ahead of last year and 11% ahead of the same point in 2019. Our build rates continue at pre-Covid levels and we remain on track to deliver first half volumes approaching those of the first half of 2019.
“We are progressing our land holdings and taking advantage of good quality investment opportunities, bringing 6,000 plots across 29 locations into the business in the period and securing a strong pipeline for the future. Our current outlet network is expected to remain stable at approximately 300 outlets on average throughout the year.
“In March, I outlined our five key priorities to ensure Persimmon achieves our new ambition and secures a reputation for providing both outstanding service and outstanding value. We are making good progress and pleasingly our HBF customer satisfaction score1 remains ahead of the five-star threshold.
“Demand for newly built homes remains healthy and the Group’s sales rates are encouraging. Persimmon’s high quality land holdings, balance sheet strength and liquidity provide a strong platform to continue to deliver the homes the country needs, underpinning long-term sustainable returns for the benefit of all of its stakeholders.”
The group will provide a further trading update on July 8.