Half-year results show reduced profit on increased turnover
Persimmon has written off its £25m investment in modular firm TopHat.
In its results for the half-year to 30 June 2024, the housebuilder recognised an exceptional charge in relation to its investment and long-term loan notes in the business.
The group has written down the value of these to nothing, which it attributed to “a re-assessment of risks within the modular build sector”.
TopHat, which opened a consultation earlier this year to make 70 staff redundant, was the subject of a winding up petition filed by Yorkshire-based developer Harworth.
Persimmon’s results also showed a drop in pre-tax profit, down to £146.3m from £151m in the equivalent period in 2023, despite a rise in revenue from £1.19bn to £1.32bn.
New home completions in the half year were 4,445, a 5% increase from 4,249 in the equivalent period in 2023, and the firm said it was on track for completions of 10,500 for the full year, which is at the top end of previous guidance.
It recorded a net private sales rate of 0.71 per outlet per week, up from 0.59 in H1 2023.
Persimmon spent £195m on land in the first half and achieved detailed planning permission on around 6,000 plots.
Dean Finch, group chief executive, said: “Persimmon is a growing company with growing opportunities.
“The first half of the year has been strong with improved sales rates and robust average selling prices, despite ongoing affordability challenges.
“Strengthening consumer sentiment, improving macro-economic conditions and the government’s welcome and ambitious planning reforms that demand more of the high quality, affordable homes that are Persimmon’s core strength, are all supportive of our ambition to grow this year and in the future.
“We are opening more sites this year and will do the same next year, demonstrating the benefit of our continued land investment in recent years.
“This growing and strong platform means we are ready to deliver more of the homes our country requires while securing industry-leading returns over the medium-term.”
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