黑洞社区

Housebuilder Persimmon has marginally exceeded analysts鈥� expectations by reporting of 拢95.5m for 2010, a 14-fold increase on its profits in 2009.

The profit was achieved on revenues up 10.5% to 拢1.57bn, and was further boosted by an 拢80m exceptional credit due to the rising value of the builder鈥檚 land bank. After all exceptional items, Persimmon鈥檚 profit was 拢153.9m.

The number of homes it built also rose by 4.5%, to 9,384, with the average selling price increasing by 5.7%.

However, a much weaker end to the 2010 means the firm is currently behind its 2010 performance in terms of forward sales. So far it has achieved 拢848m of forward sales for 2011, compared to 拢898m in 2010. The firm said that prices this year had remained 鈥渟table鈥�, rather than continuing to rise.

Outgoing chairman John White, who will step down in April, said Persimmon was continuing to open new developments, but hinted the firm was not envisaging expansion in the current market.  鈥淭he current levels of visitors to our developments and the interest in our homes is encouraging,鈥� he said.

鈥淥f course, we would like to see an increase in mortgage approvals and an increase in loan to value products for first time buyers.  However, the organisation, scale and cost base of the Group enable us to operate successfully at the current levels of activity.鈥�

Kevin Cammack, analyst at Cenkos, said the results were 鈥渁bsolutely no surprise鈥� but that the comments on current trading were 鈥渁 tad disappointing,鈥� with reservation levels up just 2%.