PERSIMMON, Britain’s largest housebuilder by market value, reported record first-half profits yesterday, comforting investors rattled by the slowdown in the housing market.

The company, which is regarded as a bellwether for the property market, also claimed that consumer confidence had begun to improve since interest rates were cut three weeks ago.

John White, the chief executive, said that he believed the housing market was beginning to pick up after it bottomed out this year.

Mr White said that sales since July 1 had risen 8 per cent from levels a year ago.

However, he cautioned that the housing market would not be returning to “the frothy highs” of previous years.

Despite tough trading conditions this year, the company reported a rise in sales from £1 billion to £1.1 billion, as pre-tax profit jumped 7 per cent to £235 million.

Analysts said that the company benefited from economies of scale and its focus on wealthier buyers, as it sold fewer homes for higher prices.

Average house prices climbed 7 per cent to £183.581, boosted by an increase in sales of Persimmon’s upmarket Charles Church brand.

The company increased its dividend by a third to 12p and promised a dividend of no less than 30.4p a share for the year. Shares of Persimmon jumped 5 per cent to 840p.

Persimmon has expressed interest in buying a rival, or more land, within the next 18 months.

Analysts believe that the company is primed for acquisitions, as its balance sheet is saddled with only £179.5 million of debt. The company’s last acquisition, that of Beazer Homes, was four years ago.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive