Persimmons Profits Soar

Persimmon has announced a 55% rise in profits to £148m, despite an annual fall in completions and average selling prices dropping 2% last year.

The house builder also revealed plans to return £1.9bn in enhanced divided payments to shareholders over the next 10 years.

Nicholas Wrigley, Group Chairman, said “Underlying profit before tax grew by 55% during the year, as Persimmon’s successful strategy of improving operating margins, investing in high quality land and generating surplus cash to pay down debt proved highly effective, despite difficult prevailing housing market conditions.

“Looking ahead, we have made a strong start to the year, with forward sales up by 9.4% to £927 million.

“Visitor levels and reservations continue on an improving trend and, although we expect the UK housing market to remain difficult, Persimmon is in a strong position to meet this challenge.”

He continued to say “Persimmon will return £1.9bn of cash to shareholders over the next 9.5 years, whilst maintaining a largely ungeared balance sheet.

“This new strategy sets Persimmon on course to build a stronger, larger business and deliver enhanced shareholder returns over the next decade.”

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