Last checked at 23 Apr 2009 07:00
Thursday 23 April 2009
Persimmon plc
INTERIM MANAGEMENT STATEMENT
Sales volumes for the first sixteen weeks of the year have continued to be ahead of our expectations. Pricing and margins however have remained under pressure. We currently have c. 6,500 homes reserved, contracted or legally completed with total sales revenue of c. £960 million.
In line with our current trading review provided at the time of our preliminary announcement on 3 March 2009, visitor levels to our sites for the year to date remain resilient despite being c. 15% down on the level for the same period last year. In addition, cancellation rates over the same period have averaged c. 16% representing an improvement over c. 35% cancellation rate for the last quarter of 2008.
We are currently operating from c. 16% fewer active sites than at the same point last year. Despite this, sales volumes over recent weeks have been ahead of those achieved in the comparative weeks of April last year when we experienced a significant deterioration in market conditions.
We continue to focus on rigorous control over working capital which is reflected in the reduction in our active sites and in our holdings of part-exchange property which is currently at a level of c. £30 million (31 December 2008: £55 million).
On 13 March 2009 we announced the finalisation of documentation in respect of the refinancing of our business through to 31 March 2012. At the end of March, which is approaching our traditional seasonal working capital peak in April, our borrowings were c. £680 million (March 2008: £1,030 million). Our debt levels are expected to reduce further this year and we continue to monitor the land market as previously outlined.
Whilst the recent improvement in market conditions is encouraging, we will remain cautious about the outlook until mortgage availability improves further and employment prospects become less uncertain.
We are, however, confident that our position in the market will provide a strong platform for growth when the market improves.
For further information, please contact:
Persimmon plc +44 (0) 1904 642 199
Mike Farley, Group Chief Executive
Mike Killoran, Group Finance Director
M: Communications
Edward Orlebar +44 (0) 207 153 1523 / +44 (0) 7738 724 630
Charlotte McMullen +44 (0) 207 153 1549 / +44 (0) 7921 881 800
Marylene Guernier +44 (0) 207 153 1269 / +44 (0) 7776 303 788