Persimmon PLC (LSE:PSN) revenue fell 8% in the first half as Covid-19, Brexit, the war on Ukraine and “sustained growth” in UK housebuilding disrupted supply chains and increased costs.
The housebuilder reported sales of £1.69bn in the the six months ended 30 June as pre-tax profit dropped from £480.1mln in the first six months of 2021 to £439.7mln.
Persimmon said it has been able to mitigate some material shortages through its Brickworks and Tileworks manufacturing facilities and house price inflation.
"Demand for our attractively priced, high quality homes has remained robust, with our average private sales rates for the period being c.1% ahead year on year,” Dean Finch, Persimmon’s chief executive, said.
“We have some exciting new sites coming into the business at industry-leading margins, with a land replacement rate for the period of over 130% and expanded production in our own brick, tile and timber frame factories, is further enhancing our supply resilience and cost efficiency.”
The average selling price for its homes increased to £245,597 in the first half, up from £236,199 a year earlier.
The housebuilder reiterated its guidance of 14,500 to 15,000 completions in 2022, despite falling behind in the interim period.
The company said it has a robust forward order book of £2.32bn, that it is over 90% ‘forward sold’ for the year, and that it hopes to return to a more normal seasonal sales pattern.
Its average private sales in the first seven weeks of the second half were 8% up on 2019, even though they fell 11% year on year.