York based housebuilding company Persimmon plc has today announced its results for the six months ending on 30 June 2017.
The group traded strongly throughout the first half of 2017 increasing total revenues by 12% from £1,489.3 million to £1,662.2 million.
This comes after a focus on new builds with increased sales volumes of 8%, equating to 7,794 new home completions compared to 7,238 in 2016.
The company opened a new office in Mansfield at the beginning of the year which has already completed 170 new homes.
They now have 29 regional businesses delivering new homes right across the UK.
The group's gross margin rose to 30.5%, from 26.9% in 2016 which has been secured in part due to increased control over development and land costs.
Subsequently, gross profits have increased 27% year on year to £507.3 million, while underlying operating profit has increased by 30% to £459.4 million.
Jeff Fairburn, group chief executive, said: "The successful execution of the group's long term strategy continues to support excellent trading results as seen again in the first half of 2017.
“Our focus on meeting market demand to deliver high quality sustainable growth in each of our 29 regional businesses is delivering excellent outcomes for our customers, our shareholders, and all our stakeholders.
"Customer interest in our developments remains strong with encouraging levels of interest through both our websites and our sales outlets as we trade through the quieter summer weeks.
“Our private reservation rate over recent weeks is c. 2% ahead year on year. Whilst we remain vigilant to changes in market conditions we also recognise we are in a strong position to take advantage of opportunities that arise. We are looking forward to a good autumn sales season."
"With a high-quality land bank, very strong balance sheet and excellent forward sales the Group has built a platform for its future success."
Persimmon was founded by Duncan Davidson in 1972, named after a horse which won the 1896 Derby and St. Leger for the Prince of Wales.
After starting in Yorkshire, Persimmon began to expand regionally with the formation of an Anglian division in 1976 followed by operations in the midlands and the south-west.
The company was floated on the London Stock Exchange in 1985, at a time when it was building around 1,000 houses a year.
Expansion continued and the company acquired other housebuilders such as Ideal Homes (£176m), Beazer Homes (£612m), and Westbury (£643m).
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