Housebuilder Persimmon sees no double dip in the UK's economy after posting a £101.4 million return to profits up 1000 percent from last year.
The Charles Church owner claims that even if house prices fell through the floor in 2010 and into 2011, the Group would still make a profit. Housing market sentiment may even improve after spending cuts were announced, CEO Mike Farley said.
In the meantime, he warned that falling consumer confidence would keep house prices restrained for the remainder of the year.
Persimmon - the UK's third largest housebuilder - meanwhile rose 7 pence (+2.11 pct) to 353.90 in the London Stock Exchange's early trading, bolstered by the group's announcement of it's first interim dividend after two years.
Revenues were up 27 pct to 776.6 million as profits increased from £9.8 million to £101.4m whilst forward orders rose to 912 million compared with 638 million last year.
Underlying profits before one-offs and landbank provisions, came in at £39.4m against a loss of £16.7m.
"Following a period of strong sales through the spring, housing market activity has slowed, as expected, over the last few weeks as we entered the normally quieter summer period." Persimmon added.