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Persimmon profits up despite rate hike.

HOUSEBUILDER Persimmon brushed aside concerns over the impact of the recent interest rate hike as it posted a 13% leap in profits, and said customer demand remained resilient.

The Charles Church group said it had seen "encouraging" trading in the quieter summer months, with demand supported by healthy employment trends and low interest rates.

This comes despite the Bank of England's move to raise interest rates from 0.5% to 0.75% earlier this month - the highest level for nearly 10 years.

Persimmon reported pre-tax profits of PS516.3m for the six months to June 30, up from PS457.4m a year earlier.

Chief executive Jeff Fairburn - who has recently come under fire over his pay package - said the group is also set to deliver further "high-quality, sustainable growth".

He said: "We have continued to experience good levels of customer interest in our housing development sites as we trade through the quieter summer season. Customers are continuing to benefit from a competitive mortgage market and confidence remains resilient based on healthy employment trends and low interest rates."

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Title Annotation:Business
Publication:The Journal (Newcastle, England)
Article Type:Financial report
Date:Aug 22, 2018
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