The chief executive of Persimmon has said the housebuilder would only consider a rights issue to buy land or other businesses

Speaking after the company announced its 2008 results, Mike Farley dismissed recent speculation that the company would use a cash call to shore up its balance sheet.

“Anything that happens in the future would be opportunity driven. We announced a refinancing deal this week which gives the business a good platform, so there is no need for a rights issue.”

Completions fell by 36% from 15,905 to 10,202 in the year to 31 December 2008, which the company described as “the most challenging period in the housing market in recent history”.

The average selling price fell by 8.7% from £189,558 to £172,994 and turnover dropped 42% from £3bn to £1.76bn.

The company recorded a pre-tax loss of £780m, after land writedowns of £652m, and goodwill writedowns on acquisitions of £201m. Underlying pre-tax profit was £126.6m.

There were encouraging signs in January 2009 and Farley said visitor levels were up 18%, compared with the last quarter of 2008. Reservations per site per week stood at 0.45 compared with 0.3 in the same period.

He said there were indications that cash-rich first-time buyers and buy-to-let investors were returning as a result of low interest rates.