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Persimmon writes down land by nearly $1 billion

Persimmon writes down land by nearly $1 billion

Britain's nationwide housing crash has forced the country's biggest homebuilder to write down the value of its land holdings by a further 600 million pounds ($926 million).
The move Monday by Persimmon PLC follows a 40 million pound writedown two months ago when the company reported its half-year results. The latest writedown wipes around 19 percent off the total value of Persimmon's land.
The company said in a statement it had "encountered deteriorating trading conditions" since it reported its half-year results in August.
"The uncertainty created in the housing market by the increasingly turbulent and uncertain outlook in financial markets has had a negative impact on all our regions across the UK," it said.
In addition to the loss on the value of its land, Persimmon said because of the credit crunch has reduced the availability of mortgages, more than a third of its clients were now canceling agreed purchases of the company's homes. The company did not give an earlier comparative figure.
It also said homes were selling for an average of 10 percent lower in the second half of 2008 than they were in the same period in 2007.
While large, the writedown Monday was smaller than the market had been anticipating and shares rose 3 percent to 225 pence ($3.47).


Updated : 2021-06-22 00:50 GMT+08:00