Persimmon posts spectacular profits rise
Flying in the face of double-dip fears, homebuilder Persimmon saw profits jump on improved margins while sales have been encouraging since the start of the year in the eagerly-anticipated Spring selling season.
Buoyant builders: But economists are predicting another tough year
The UK's largest housebuilder by market value said full-year underlying pretax profit surged to £95.5m from £7m the year previously.
Market expectations had ranged between £84m and £98m, with the consensus at £92m, according to a Thomson Reuters poll of 11 analysts.
Persimmon said sales since the beginning of the year had been encouraging, with higher visitor levels.
This echoed comments from rival Barratt and Redrow which both noted a strong uptake in sales since the start of the year in recent results statements.
A positive start to the year, and buoyant spring selling season, would come as a relief to the sector after a weak autumn trading period, which was further exacerbated by bad weather in December.
But economists are predicting another tough year for the housebuilders with muted growth at best, with economic uncertainty and a struggle to access credit deterring buyers from entering the market.
In January, Persimmon said completions rose 4.5% in 2010 to 9,384 homes, while prices nudged up 6% to 167,000 pounds.
Despite the news shares in the company dipped this morning, down 7.9p (1.7%) to 462.5p.
It added that it would pay a dividend of 4.5p per share, bringing the total dividend for the full-year to 7.5p.
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