Confident note at Persimmon

BRITAIN'S second biggest volume housebuilder, Persimmon, today talked confidently of a 'sustainable' housing market as it announced a bulging order book with a 30% jump in forward sales revenue since the start of the year.

Speaking to analysts at a site visit in the North East, chief executive John White signalled his readiness to go back on the acquisition trail, the second strong sign he has given in less than two months since delivering forecast- busting 2003 results.

He said: 'Persimmon is in excellent shape. Trading continues to be strong and we have ample scope for further organic growth and to make acquisitions, should the right opportunity emerge.'

Industry peers have tipped mid-sized builders Westbury and Bellway as targets for any industry consolidation.

The average selling prices of Persimmon new homes, including its fast-growing Charles Church premium branded houses, are up around 12% on a year ago at £169,000 while the number of homes forward sold has risen 17%.

White said the Bank of England monetary policy committee's decision to raise interest rates two weeks ago 'will contribute to ensuring the market is sustainable'.