Persimmon 2008 profits down 78%

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The Independent Online

Housebuilder Persimmon reported its underlying pre-tax profit dropping 78 per cent in 2008 today, but said it is confident of its position after renegotiating its bank facilities yesterday.

Britain's second biggest housebuilder by market value, posted a 78 per cent fall in 2008 pretax profits to £126.6m.

It made £585.1m in 2007.

Persimmon posted a pre-tax loss of £780m including land writedowns and goodwill charges.

Fears that Persimmon may need to raise funds were soothed yesterday when the company announced it had renegotiated terms on its existing debt and also agreed a new facility of £322m, repayable in 2012. It will have funding lines of £1.08bn, reducing to £560m during 2011.