Firm says it remains on track to complete 12,500 homes this year
The ongoing conflict in Iran has had no material impact on Persimmon’s trading so far, the housebuilder said in an update this morning ahead of its AGM later today.
The housebuilder’s update, which covers the period from 1 January to 26 April, said the war, which broke out halfway through the period, had not blunted business.
“The ongoing conflict in Iran, and resultant geopolitical and economic uncertainty, has not had any material impact on trading to date,” said Dean Finch, group chief executive.
“However, we are mindful of its potential impact, including on consumer confidence, and there are early signs of increased inflationary pressure.”
Several recent trading updates from housebuilders have cited the conflict as a cause for concern, with Bellway warning of “volatility”, Taylor Wimpey anticipating cost inflation and Crest Nicholson entering talks with lenders to secure its position ahead of an expected drop in profitability.
“We are carefully monitoring the situation, driving sales across all brands and tenures, maintaining flexibility and a rigorous focus on cost control and cash generation, whilst being supported by a robust balance sheet,” Finch added.
It reported net private sales per outlet per week of 0.76 during the period, up 3% from 0.74 in the equivalent period the year prior.
Persimmon predicted that, “assuming market conditions do not materially deteriorate”, it will deliver underlying pre-tax profit in line with consensus of £462m and complete between 12,000 and 12,500 homes this year.
Persimmon will announce its interim results on 6 August.
Source: www.Building.co.uk