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Profits jump for construction firm

Persimmon, a northern company that builds houses, has reported an increase in earnings in excess of 50 per cent for the six month period ending this June.

The firm, which is based in York, stated that its profits prior to taxation were almost £213 million in the first half of the year. This reflected a rise in total revenues of around a third.

In addition, the business has declared that it sold over a quarter more homes than it had previously, while noting that its average sale price remained buoyant. These promising results were declared only one day after Bovis Homes, a competitor, had announced a similarly positive set of figures.

One independent expert, Robin Hardy, an analyst at Shore Capital, has suggested that the success of Persimmon has exceeded expectations somewhat. It is also worth noting that new lending rules, with regard to mortgages, must have had an impact on the activity of Persimmon during the six month period in question.

The healthy performance of Persimmon is apparently of importance for regional housing markets in particular, because that is where much of its business originates. As a result, continuing success could lead to a greater demand for wood flooring in North Wales and other nearby regions.

The chairperson of Persimmon, Nicholas Wrigley, has said:

“Whilst we remain vigilant about the continued challenges facing our markets emanating from events both at home and abroad I remain confident of Persimmon’s continued successful development.”

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