Persimmon builds a sound foundation

Builder Persimmon has reported pre-tax profits of £470.4m, the highest ever profit reported from a building firm.

The profit is a 33% increase on last years results, despite trade cooling last May. Overall, the group sold 12,360 properties in 2004 at a value of £2.13bn. Persimmon completed 11,273 homes at an average asking price of £164,488 each.

Despite the slowdown in sales, Persimmon has said that 2005 has started strongly. So far, the group has sold about £1bn worth of homes.

Persimmon Chief executive John White said that the interest rate rises of 2004 were “entirely necessary”. Despite causing a drop in the market, the interest rate rises maintained stability for Persimmon.

The firms shares where up 1% on morning trading.