Thursday 21 June 2018

Profits at Persimmon to come in ahead of forecasts

Revenues at the group rose 9% to £3.42 billion in 2017, with completion volumes growing 6% to 16,043.

Persimmon has upped its profit forecast
Persimmon has upped its profit forecast

By Ravender Sembhy, Press Association City Editor

Persimmon has said profits for the full year will come in marginally ahead of expectations as the housebuilder continues to see healthy demand for new homes.

Revenues at the group rose 9% to £3.42 billion in 2017, with completion volumes growing 6% to 16,043.

The group’s average selling price increased by 3% to £213,300.

Persimmon said that it experienced healthy customer demand for new homes through the autumn sales season, with the value of its forward sales book standing at £1.35 billion, 10% ahead of 2016.

As a result, the firm said that it anticipates pre-tax profits for the year to come in “modestly ahead of market consensus”.

Persimmon added: “The group continues to pursue disciplined high-quality growth in its regional markets in support of the Government’s desire to increase housing supply across the UK.

“We remain mindful of market risks including those associated with the uncertainty arising from the UK leaving the EU.

“However, we are keen to deliver further improvement in our housing output and remain ready to invest wherever the local planning environment is supportive.”

The housebuilder said that completion volumes grew 6% to 8,249 in the second half of the year versus the first six months.

The results come as Persimmon is embroiled in a row over excessive executive pay, which led to chairman Nicholas Wrigley’s resignation late last year.

It follows investor consternation over a long-term incentive plan introduced in 2012, which could see the management share £600 million depending on profit and housebuilding targets.

Chief executive Jeff Fairburn is in line for the biggest payout, which is set to top £100 million.

Press Association

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