Persimmon profits fall

Aug 21 2008 by Kathryn Smith, Evening Gazette

HOUSEBUILDER Persimmon announced a two-thirds slump in first half profits today - a month after making 60 people redundant in the region.

The York-based firm, which last month vowed to keep its office at Newton Aycliffe open and promised that active developments would continue to be marketed, said trading conditions were the most challenging in its recent history. Nationally, the housebuilder has cut 2,000 jobs to cope with the downturn in the market. Announcing pre-tax profits for the six months to June 30 down 64% to £100.9m, it warned: “The current economic conditions, the uncertainties surrounding the general financial markets and mortgage availability will be defining factors in the return to a more normal housing market.

“Until we see an improvement in respect of these factors it is difficult to predict the short-term future with confidence.”

Persimmon also has bases in Newcastle and a Charles Church North-east operation in County Durham.