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Persimmon performing robustly through pandemic

by LLP Staff Reporter
11th Nov 20 4:07 pm

Volume housebuilder, Persimmon, is set to achieve a “good result” for 2020, announcing that the business is continuing to perform strongly despite the challenges of Covid-19.

According to the firm, during the period from July 1 to November 9 2020, its average private weekly sales rate per site was 38% ahead of 2019, largely driven by stable selling prices and resilient demand for new build homes, as well as a good level of its properties being at an advanced stage of construction.

In the period, the firm worked from around 305 active outlets, 13% lower than last year which it said showed its strong sales rate.

Persimmon said that as expected, with the wider industry’s gradual return to greater activity, its market share in recent weeks had begun trending towards more normal levels, “although sales rates remain ahead of the prior year”.

With strong build rates, the business expects legal completions in the second half of its year to be at least in line with H2 2019, provided there is no significant disruption caused by additional Covid-19 measures.

The business said it was “fully sold up” for the current year with around £1.36 billion of forward sales reserved beyond 2020, a 43% increase on last year.

It also said it was well prepared for the second lockdown and was continuing to work with its subcontractors and supply chain to maintain its operations. But the business sounded caution on possible further pandemic measures and continuing uncertainty affecting the UK economy.

Dean Finch, Persimmon’s group CEO, said: “Persimmon continues to perform robustly despite the significant challenges presented by the Covid-19 pandemic and we are currently on course to deliver a good result for 2020.

“Persimmon is undoubtedly a strong market leader with an excellent management team and workforce and significant-high-quality assets. The task in front of us is to continue to build a sustainable business in every sense – one that can maintain a strong financial performance whilst continually improving customer service, and fulfilling our important role in the economy, in our communities and for the environment.”

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