Persimmon shows revenue improvement

UK homebuilding firm Persimmon has released a trading update revealing a 23% revenue increase to £2.6 billion (€3.3 billion) during 2014.

The company recorded an increase of 7% in its forward order book to a total of £973 million (€1.2 billion), which it said had given it “a strong momentum” moving into 2015.

During the past two years, the firm has delivered a 36% increase in new properties, which has included a 17% increase (to 13,509) in legal completions to homes during 2014.

According to the company, it had seen a “good levels of demand” across the UK in 2014. It said, “There has been a return to a more seasonal pattern to customer activity and we have sold well right through to the end of the autumn season.

“In line with the group’s long-term strategy, during the year we identified a number of excellent opportunities for disciplined reinvestment in new sites in good locations.”

The firm’s trading update follows the latest purchase managers’ index report (PMI) for the UK, which indicated homebuilding levels had risen during 2014, despite an overall slowdown in the construction sector.