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Persimmon FY18 Revenues Rise; Sees Pre-tax Profit Modestly Ahead Of Market View

UK-based home builder Persimmon Plc. (PSN.L) reported Tuesday that its fiscal 2018 total Group revenues of 3.74 billion pounds were 4% higher than the prior year's 3.60 billion pounds.

The company anticipates pre-tax profits for 2018 will be modestly ahead of current market consensus, having benefited from the new developments that were opened through the year.

In its trading update ahead of its final results for the year ended December 31, 2018, which will be released on February 26, the company said that it has delivered another strong trading performance, with continued disciplined growth in 2018 in line with its strategy.

New housing revenues increased 4% to 3.55 billion pounds from last year's 3.42 billion pounds. Legal completion volumes increased 3% to 16,449 homes, including private sales of 13,341 new homes, higher than last year.

Average selling price of about 215,560 pounds was 1% higher than last year. The UK housing market has continued to benefit from robust employment levels, low interest rates and a competitive mortgage market, which have supported confidence and customer demand across the regions.

The value of the forward sales as of December 31, 2018 was about 1.395 billion pounds, 3% ahead of the prior year.

Looking ahead, to the 2019 spring season, Persimmon said it is in an excellent market position. Whilst the future performance of the UK economy is currently subject to increased levels of uncertainty, the firm is well positioned with its strong outlet network together with the availability of a range of attractive house types at affordable prices across the regions of the UK, supported by a high quality land bank and conservative financial structure.

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