SHARES in housebuilder Persimmon closed down nearly five per cent after it reported that first-half completions will fall short of that achieved last year.
The company said average sales rates are running at around 2% higher year-on-year, and that it has “robust” forward order book of about £2.8 billion, against £3bn the year before.
Dean Finch, Persimmon chief executive, said that “reflecting the profile of outlet openings, we anticipate that completions this year will be weighted towards the second half, with first half completions being lower than those delivered in the first half of 2021”.
The firm expects to deliver volume growth for the full year of around 4-7% of 2021 levels.
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"Earlier this month we signed the Government's pledge on cladding removal and fire safety remediation, the principles of which are consistent with the commitment we announced over a year ago," Mr Finch said."As such, we continue to believe the £75 million provision we have already set aside remains appropriate.”
He added it is “mindful of current uncertainties, particularly regarding consumer confidence, rising interest rates” and the impact of the invasion of Ukraine by Russia.
Persimmon also said: “Demand for new build homes continues to outstrip supply and mortgage availability remains positive.”
Matt Britzman, at Hargreaves Lansdown, said: “Cost pressures from inflation and supply chain issues remain, but Persimmon has an ace up its sleeve where that’s concerned given it owns a range of manufacturing facilities that help mitigate those challenges."
The average selling price in the forward order book is £266,000, Persimmon said, against £252,000 the year before.
As well as the scheduled April dividend of 125p, a further payment of 110p is set to be returned in July.
Shares in Persimmon closed down 4.77%, or 104p, down, at 2,076p.
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