Outlook is still gloomy

first_img KCS-content FOR?the most part, investors don’t like surprises. But Persimmon’s decision to reinstate its dividend at 3p, which came as something of a bolt from the blue, will be welcomed by shareholders. Although analysts were prepared for the housebuilder to swing back into the black, most thought the dividend would make a comeback at a later date, probably in 2011. Management clearly felt the business was making enough progress to act early. As a bellwether stock for the rest of the housebuilders, yesterday’s numbers should have inspired confidence.But the cautious tone on the outlook suggests this is something of a false dawn. With data pointing to another fall in house prices before the end of the year, the property sector is bracing itself for a double dip. Although Persimmon will be better placed to weather the storm this time, having paid down its debt pile to £122m, the austerity measures planned for the Autumn will surely affect housebuyers.That’s why Persimmon should ready itself for a sharp reduction in sales, and start focusing on margins not volumes. Shareholders should thank their lucky stars that the housebulder reinstated the dividend early.?If it had waited until 2011, it might have thought twice. Show Comments ▼ Outlook is still gloomy Tuesday 24 August 2010 7:51 pm Sharecenter_img whatsapp Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof Tags: NULL by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableyBetterBe20 Stunning Female AthletesBetterBeCrowdy FanShe Didn’t Know Why Everyone Was Staring At Her Hilarious T-ShirtCrowdy Fanautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite HeraldTrading BlvdThis Picture of Prince Harry & Father at The Same Age Will Shock YouTrading Blvd whatsapplast_img