Persimmon PLC (LON:PSN), the blue-chip housebuilder, said it has seen a strong rebound in house sales in July following the easing of coronavirus (COVID-19) pandemic lockdown restrictions.
Average weekly private sales are up by 49% on a year, the FTSE 100-listed group added, with forward orders 21% higher at £2.5bn.
In a statement with its results for the half-year to end June 2020, Persimmon noted that prospects were sufficiently encouraging to recommend a 40p interim dividend, although this is a fraction of last year’s 235p payment.
Earlier in the year, the builder scrapped its final dividend as well as plans for a special dividend but said it might make up some of the final payment if trading remains strong.
Revenues in the six months to June 30, 2020, fell by a third to £1.2bn while the number of completions dropped to 4,900 (June 30, 2019: 7,584) as lockdown severely hampered sales and construction.
Profits decreased by 42% to £292.4mln and Persimmon said it ended the period in a strong financial position with cash of £821mln.
For the second half, Persimmon said a strong opening work in progress position and excellent build rate through the summer gave it confidence in a positive second half outturn.
The group said: “We expect that by the end of September, we will have delivered c. 45% of our anticipated second half new home legal completions.”
“Consistently low interest rates, good mortgage availability and supportive Government policies provide reassurance for the housing market. However, we also recognise the potential risks over the medium term posed by further Covid-19 disruption, rising unemployment and the potential impact of the outcome of a future trade deal with the European Union and the rest of the world,” it added.