House building firm, Persimmon reported today a net pre-tax profit at £77.8 million, for 2009 compared to a loss of £780 million this time in 2008. This could mean more construction jobs on offer in the near future, if this success continues. This healthy profit was helped by a one-off windfall following the re-evaluation of its value.
This included a write up of £74.8 million for the land re-evaluation. The pre-tax profit before exceptional items and goodwill charges, was £7 million, and the company said they would make further write-ups if there was no significant deterioration in house prices.
Persimmon said it would not make any forecasts for house prices for the rest of this year, because of the uncertainty of the general election due in May, saying "it's too early to make precise forecasts about the housing market."
Persimmon stopped work in April 2008, then opened 40 new sites in the first half of last year and a further 50 in the second half. Some of the sites were assisted by Government grant funding for affordable homes.
Prices have stayed steady since the beginning of the year and the company plan on starting work on 90 new sites this year. Rivals Barratt and Redrow have said that factors which will continue to jeopardise the growth of the housing market, include mortgage approvals and land availability.