​​​
  1. UK’s Persimmon positive after first half despite Brexit hit to housebuilders

UK’s Persimmon positive after first half despite Brexit hit to housebuilders

British housebuilder Persimmon Plc said it saw "good opportunities" ahead after a 12 percent rise in first-half revenue and despite housing shares taking a heavy hit following Britain's decision to exit the European Union.

By: | Published: July 5, 2016 2:19 PM
The Brexit vote has sparked uncertainty which could slow sales and some economists have warned recession could now be on the cards. (Reuters) The Brexit vote has sparked uncertainty which could slow sales and some economists have warned recession could now be on the cards. (Reuters)

British housebuilder Persimmon Plc said it saw “good opportunities” ahead after a 12 percent rise in first-half revenue and despite housing shares taking a heavy hit following Britain’s decision to exit the European Union.

About 8 billion pounds ($10.5 billion) was initially wiped off the market value of top British housebuilders Taylor Wimpey , Persimmon, Barratt and Berkeley following the Brexit vote last week.

The stocks have seen some recovery since.

[related-posts]

However, Persimmon struck a positive note on Tuesday, pointing to forward orders of 1.36 billion pounds ($1.8 billion) as at June 30, its existing land bank and robust financial position.

“We remain confident in the group’s prospects,” it said.

New volumes grew by 6 percent to 7,238 units in the six months to June 30, Persimmon said, adding it had “good levels” of sales in May and June with private sales up about 1 percent.

The UK’s decision to exit the EU has prompted doubts about housing, a sector buoyed in recent years by low mortgage rates, government schemes to help first-time buyers, and a supply shortage.

The Brexit vote has sparked uncertainty which could slow sales and some economists have warned recession could now be on the cards.

Two real estate-related names have already issued warnings.

Retirement housebuilder McCarthy & Stone Plc raised concerns about its full-year sales volume growth target while London-focused estate agent Foxtons Group Plc warned that Brexit would weigh on property sales and earnings this year.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Go to Top