Tuesday, Feb 26, 2008
The market is crumbling!
Times: Persimmon profits flat as order book drops 20%
Visitor levels have been increasing week by week since the start of 2008, but conversion to sales ratios remain "challenging," the company's trading statement says
Posted by confused76 @ 09:14 AM (305 views) Add Comment
2 Comments
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1. confused76 said...
My my... persimmon widely reported in the press
http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=431061&in_page_id=3&ct=5
"Chairman John White complained of 'a very challenging year' and was cautious about the spring selling season. 'When confidence returns and sentiment improves we anticipate a return to a stronger market,' he said." yes so was sentiment no fundamentals
There remains an underlying demand and desire for new homes but we have been experiencing a period of a "wait and see" approach.'
AH HAH HAHAH AHAHHAHH HHAHAHAHHAH A
Persimmon posted a 1% rise in profits to £585.1m for 2007, its 12th successive year of profit growth thanks to strong emphasis on its margins. The number of houses sold fell 5% to 15,905 but the average selling price was up from £188,129 to £189,558.
Persimmon today raised its dividend by 10% to 51.2p a share.
Dresdner Kleinwort said it expects more 'grim' news from the sector in the coming days. Barratt Developments reports results tomorrow and Redrow delivers its figures on Thursday.
'The housebuilding recession began on 15 September, the day after Northern Rock imploded,' Dresdner said in a note.
2. cyril said...
The founder of Persimmon (Duncan Davidson) got out at the right time when he retired a couple of years ago. He famously said of his achievements: 'We started from scratch with the wheelbarrow and built the largest housebuilder in the country.'
Oh well, easy come easy go.