Persimmon weathers the storm with £77.8m profit

SCOTLAND was one of the "most challenging" markets for Persimmon in 2009 as Britain's biggest housebuilder still managed to post a pre-tax profit of £77.8m against a £780m loss in 2008.

Mike Killoran, group finance director, said: "The Scottish housing market reacted about six to nine months later than England to the credit crunch and reduced mortgage availability. But despite the tough market, Scotland also proved a bit more resilient, not hitting the same lows."

Persimmon, which has sizeable operations in Hamilton and Bathgate, as well as its Charles Church business, completed 750 homes north of the Border last year – down 15 per cent.

However, it achieved a 12 per cent rise in Scottish volumes in the second half of 2009 and expected the improvement to continue.

"We have aspirations to do well over 800 units in the Scottish business this year," Killoran said.

Sales rates generally were up 20 per cent in the first eight weeks of 2010, he said, compared with a rise of about 16 per cent in Scotland. "Scotland is not rebounding as much, but did not experience the same shortfall," he said.

Average selling prices in Persimmon's north division fell to 151,462 (172,160).