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* Persimmon reinstates interim dividend
* H1 profit falls due to virus crisis
* Shares top FTSE-100 gainers
(Adds analyst quote, shares, background)
By Samantha Machado
Aug 18 (Reuters) - Housebuilder Persimmon posted a
plunge in first-half profit on Tuesday after lockdown disrupted
construction and home sales, but said it would reinstate its
dividend after an "excellent start" to the second half of the
year.
The company's shares were 4.4% higher at 2729 pence by 0747
GMT, making it the top gainer on Britain's FTSE 100 index
.
After coming to a virtual standstill in late March and
April, Britain's housing market has picked up pace as pent-up
demand, tax breaks for home purchases and a desire for suburban
living buck the usual summer slowdown.
Persimmon declared a "modest" interim dividend of 40 pence
per share in place of 125 pence a share payment it cancelled
earlier.
It is one of the first UK-listed companies to bring back a
dividend, providing some optimism for investors after the
coronavirus crisis hammered the sector.
The UK's second-largest homebuilder said it expects to
deliver about 45% of its second half new home completions by the
end of September, adding that its gross margin remained
resilient due to lower costs.
"This year is increasingly looking to be a game of two
halves for Persimmon, with the outlook rather brighter than the
pandemic-hit first few months," Richard Hunter, Head of Markets
at Interactive Investor said.
Britons bought and sold a record number of homes between mid
July and early August, according to property website Rightmove.
"Potential medium-term risks to demand associated with
Covid-19, rising unemployment and Brexit remain, but long-term
housing market fundamentals continue to be strong," Persimmon,
which competes with Taylor Wimpey and Barratt
Developments, said.
Persimmon sold 4,900 homes in the first six months of the
year compared with 7,584 in the year earlier period, with the
average selling price rising to 225,066 pounds ($295,736) from
216,942 pounds.
Pretax profit fell to 292.4 million pounds from 509.3
million pounds.
($1 = 0.7610 pounds)
(Reporting by Samantha Machado in Bengaluru; Editing by Aditya
Soni and Arun Koyyur and Kirsten Donovan)
