National housebuilder Persimmon says its forward order book is running ahead of last year, positioning the company for a strong second half.
In a trading update, Persimmon said since its management statement in April the value of its private sales reservations has increased 6% on a year ago. Its order book at June 30 had reached £725m.
During the first six months 4,439 homes were completed (2010: 4,657), though full year completions are projected to be similar to last year due to increased volumes in the second half.
Average selling prices fell to £162,000 (2010: £168,936), reflecting a greater proportion of smaller house types in the period. But the completion of more detached houses will lead to an increase in the second half.
Operating margins for the first half are expected to be about 9% (2010: 8%).
Persimmon said it had been successful in securing £35m of Government FirstBuy funding to support first-time buyers. This will be rolled out to 290 sites and 2,100 homes.
“Market conditions during the first half of the year have been stable, allowing the business to focus on delivering improved operating margins, generating good levels of free cash flow and successfully securing residential consents on a number of strategic land parcels,” it said.
