Persimmon remains confident despite market uncertainty

Persimmon announced it was ‘too soon to judge’ how the outcome of the EU referendum would affect the UK property market.

The housebuilder released an update this morning (5 July 2016), with the results covering the period between 1 January 2016 until 30 June 2016.

The firm revealed it had increased completions by 6 percent year on year. Revenues were also up by 12 percent and stood at £1.49bn compared to £1.33bn in 2015.

The Group also stated its 10-year strategy “was structured to accommodate periods of uncertainty” and that through the plan’s success, the company ‘has retained the flexibility, financial strength and land bank resources to continue to meet its strategic objectives’.

Regarding the Eu referendum outcome, Persimmon stated:

“It remains too soon to judge the effect that the result of the EU Referendum will have on the UK new homes market. We believe that market fundamentals remain strong, supported by long term unfulfilled demand, and that the UK housing market will continue to provide good opportunities for those companies with the right strategic focus and the balance sheet strength to navigate future changes in trading conditions.

“We remain confident in the Group’s prospects based upon our long term strategy, the hard work and dedication of all our team, the Group’s excellent forward orders, strong land bank and robust financial position.”

Despite the statement, shares of construction firms continued to fall this morning, with Persommon’s shares at -5.16% at time of publishing.