Shares in Persimmon (PSN) fell 3 per cent on the day the housebuilder revealed that sales during the five months to November 2017 were flat on the previous year. However, the numbers were up against some tough comparatives. In addition, targeted sales for the full year have already been achieved, and forward sales worth around £909m are up 10 per cent on a year earlier.
Sales outlets were down 10 per cent, although 95 new sites were opened in the first half and a further 61 in the second half to date. An additional 45 sites are expected to open by the year-end. To support its growth plans, a new regional operation is to open near Ipswich, bringing the total to 30.
A total of £147m was spent on new plots including payment of deferred land creditors. Of the 5,526 new plots, nearly half were converted from the company's strategic land portfolio, and strong strategic land conversion is expected over the new few years as local authorities work to make sufficient land available to meet their new homes targets. Persimmon expects to hold strong cash balances at the year-end, subject to the timing of further land investment.
