House builder Persimmon’s pre-tax profits topped £1bn for the first time last year.
The firm posted record profits after seeing share price falls yesterday following reports the government is examining Persimmon’s practices under the Help to Buy scheme for first-time buyers.
This morning it announced that Dave Jenkinson, who has been interim group chief executive, since the departure of Jeff Fairburn at the end of last year will take up the role permanently.
Further operating margin growth to 31% from 28% previously lifted pre-tax profit 13% to £1.09bn.
But with housing completions up by little more than one new home a day last year to 16,449, revenue only edged up 4% to £3.7bn.
Jenkinson said: “We support the government’s initiatives to assist the increase in output from the industry towards its goal of reaching 300,000 new homes built each year, across multiple tenures, by the mid-2020’s.
“We remain keen to contribute to this increase in new home delivery and the group is well positioned in its local markets with its attractively designed core house types, offering homes at more affordable prices on developments that concentrate on providing a good range and choice to all customers with an emphasis on first time buyers and first time movers.
As a result of the group’s strong levels of sales reservations through the autumn of last year, together with solid sales in the early weeks of 2019, the group has a strong forward sales position of £2.02bn.”
He added: “However, we will remain vigilant to changing conditions in the sales and land markets to ensure we continue to judge our land replacement activity appropriately, recognising that the negotiations associated with the UK’s exit from the EU present key uncertainties that may have a significant influence on market outcomes.”
from Construction Enquirer http://www.constructionenquirer.com/2019/02/26/persimmon-profit-tops-1bn-as-margin-soars-to-31/
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