Persimmon confident despite property hit
Falling property prices will see Persimmon write down the value of the land it owns by more than £700m in its annual results this week - believed to be the biggest writedown by a British housebuilder.
In control: Chief executive Mike Farley will tell shareholders he does not need to raise cash
Persimmon, Britain's second biggest housebuilder, after Berkeley Group, last year said it faced writedowns of £640m. Analysts expect it to reveal further losses of more than £100m.
Despite this, Persimmon is expected to report underlying profits of £129m, though this is dramatically lower than the £582.7m for 2007. After the drop in land values is taken into account it will post a record loss.
While Persimmon is expected to unveil advance sales of about £400m, down on £603m at this time last year, chief executive Mike Farley will tell shareholders he does not need to raise cash via a placing or rights issue.
The company has reduced its borrowings by nearly £300m and is thought to have appointed NM Rothschild to renegotiate the terms of the debt.
Persimmon has lured buyers with mortgage subsidies of up to £500 a month and a 'live free for a year' deal, during which it pays utility and council tax bills.
Most watched Money videos
- German car giant BMW has released the X2 and it has gone electric!
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Mini unveil an electrified version of their popular Countryman
- How to invest to beat tax raids and make more of your money
- MG unveils new MG3 - Britain's cheapest full-hybrid car
- Mail Online takes a tour of Gatwick's modern EV charging station
- Iconic Dodge Charger goes electric as company unveils its Daytona
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Paul McCartney's psychedelic Wings 1972 double-decker tour bus
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Steve McQueen featured driving famous stunt car in 'The Hunter'
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Co-op Bank agrees possible £780m takeover by Coventry...
- How LVMH is going for gold at Paris Olympics: Luxury...
- G7 fights for Ukraine cash as Russia's economy booms -...
- MARKET REPORT: Airlines soar as Easyjet eyes a record summer
- Rentokil shares slip as investors mull mixed picture on...
- Dunelm shares slip amid 'challenging sales environment'
- AJ Bell shares jump as it tops 500,000 DIY investors with...
- Deliveroo returns to order growth as international trade...
- Hunt raises alarm over bid for Royal Mail as 'Czech...
- Foxtons hails best under-offer homes pipeline since...
- Two female BP execs to leave in first reshuffle since...
- Average car insurance bills rocket to almost £1,000:...
- My husband managed all my money. Now he's left me, what...
- BUSINESS LIVE: EasyJet winter losses narrow; Hipgnosis...
- Neil Woodford is back as a finfluencer: You may remember...
- EasyJet narrows winter losses as holiday demand...
- Hipgnosis agrees £1.1bn takeover deal by Concord Chorus
- 'I'm neither hero nor villain', insists disgraced fund...