|
Britain’s biggest house builder, Persimmon is expecting a further increase in house prices next year despite threats of higher interest rates.
Chairman John White said while the group would prefer it if interest rates didn't rise again, he wasn't too worried. "The last two increases had hardly any impact on us at all. Another one wouldn't be a major concern," he said.
And the builder is looking to build up its supply of land in reserve – or take over rival firms, it has said.
Trading had been in line with its expectations, the builder said, adding that it expected to make a full-year pre-tax profit in line with forecasts of around £580m.
Forward sales into 2007 would be over £700m and its land bank had remained steady at around 78,000 plots, the group said.
Debt gearing was reduced to around 35% of equity, more than previously indicated and expected, sparking speculation that the firm is once again on the hunt for potential acquisitions.
Make Farley, chief executive of Permission, said that he would not rule out any acquisitions. However, the company was more likely to use the increased spending power on taking up its current land options.
He said extra cash can go into reinvestment into new land and other opportunities and the company is planning to bring forward 30,000 plots through strategic land, over the next three years.
|
Get
this news on your website !
Sponsored listings: