- HY revenue jumps 53% to £ 1.84 billion
- Forward order book at stg 1.82 billion at end-June
- “Kaki is back on track” – analyst
July 8 (Reuters) – British homebuilder Persimmon (PSN.L) moved its dividend payout to next month on Thursday, joining smaller rivals in forecasting strong demand even after a tax holiday on real estate purchases in September.
Extended stamp duty relief, cheap loans, and an increased preference for large homes by buyers who saved up during the shutdowns have helped home builders forecast higher returns over the medium term.
Persimmon, the country’s second-largest homebuilder that offers a range of homes from studios to five-bedroom homes, said its revenue for the six months to June 30 had jumped 53% to £ 1.84 billion.
“Customer demand for our new homes has been strong across the UK with healthy sale booking rates throughout the period,” said Managing Director Dean Finch.
In recent weeks, mid-sized players Redrow (RDW.L), Vistry (VTYV.L) and Crest Nicholson have also expressed confidence that demand will be strong going forward.
House prices have risen in recent months as buyers rushed to close deals by the end of June, when tax relief began to wane. But RICS data released on Thursday showed fewer homes were put up for sale and buyer demand grew less rapidly before a tax break ended in September. Read more
Persimmon futures sales stood at 1.82 billion pounds ($ 2.5 billion), slightly lower than 1.86 billion pounds a year earlier.
With £ 1.32 billion in net cash, Persimmon plans to return 110 pence per share of excess capital to shareholders as an additional interim dividend next month, up from two payments in August and December.
“Kaki is back on track with most indicators improving above pre-pandemic levels,” said Richard Hunter, head of markets at Interactive Investor.
Shares of FTSE-100 were down 1.7% as of 07:22 GMT, in line with wider weakness in the London stock market (.FTSE).
($ 1 = 0.7264 pounds)
Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Subhranshu Sahu
Our Standards: Thomson Reuters Trust Principles.