Housebuilder Persimmon has announced a pre-tax profit of £77.8 million compared to a £74.8 million loss in 2008.

The group said sales throughout Autumn 2009 remained steady and in January 2010 it carried forward £637.8 million of sales revenue on 4,280 homes.

John White, Group Chairman, said: "Our cash generation and cost control have placed the business in a strong position both operationally and financially for a recovering market. Prices have held firm since the beginning of the year and we remain focused on improving our operating margins and to profitably grow the business."

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However the group said: "It is too early to make precise forecasts about the housing market, particularly in an election year, and we will remain cautious in our investment decisions. We will continue to look to reduce debt levels again this year, although we remain ready to take advantage of any suitable opportunities as they arise."

Persimmon are planning to open new sites this year and remain optimistic but "cautious" to further improvements in the housing market.

(CD/GK)