York housebuilder Persimmon said it expects first half volumes to approach 2019 levels after seeing its forward sales rise to £3bn.
The firm has posted a trading update for the first four months of the year ahead of its AGM, saying it is encouraged by strong demand, giving it a solid start to 2021.
The group’s current forward sales position, including year to date legal completions, is 23% ahead of last year at circa £3bn, and 11% ahead of the same point in 2019.
The average selling price for private homes in the forward order book is £252,000, up on last year’s £244,500.
It also said customer enquiry levels remained encouraging throughout the period, with the average private sales rate for the year to date being well ahead of 2020 - a figure it expected given the impact of the pandemic yet is also 17% ahead of 2019.
It said build rates across its developments remain at pre-pandemic levels and that active outlet numbers have been running 15% lower than for 2019 and the first half of 2020, in line with its cautious strategy, to mitigate risks associated with the cycle.
Meanwhile, it highlighted a robust balance sheet and liquidity, holding £940m of cash as of April 23. It also has an undrawn £300m revolving credit facility which has recently been extended.
Dean Finch, group chief executive, said: “Persimmon has made a strong start to the year with current forward sales 23% ahead of last year and 11% ahead of the same point in 2019.
Most Read
"Our build rates continue at pre-Covid levels and we remain on track to deliver first half volumes approaching those of the first half of 2019.
“We are progressing our land holdings and taking advantage of good quality investment opportunities, bringing 6,000 plots across 29 locations into the business in the period and securing a strong pipeline for the future. Our current outlet network is expected to remain stable at approximately 300 outlets on average throughout the year.
“In March, I outlined our five key priorities to ensure Persimmon achieves our new ambition and secures a reputation for providing both outstanding service and outstanding value. We are making good progress and pleasingly our HBF customer satisfaction score remains ahead of the five-star threshold.
“Demand for newly built homes remains healthy and the group’s sales rates are encouraging. Persimmon’s high-quality land holdings, balance sheet strength and liquidity provide a strong platform to continue to deliver the homes the country needs, underpinning long-term sustainable returns for the benefit of all of its stakeholders.”
Shares rose slightly, by 2.29% to 3219p, following the announcement.