Persimmon reaps rewards of climbing house prices as profit and revenue inch higher
Persimmon pre-tax profit has risen by more than £180m in the past 12 months, as new home completions and average selling prices rise.
The housebuilder completed 14,551 homes in the year to 31 December, up from 13,575 in 2020.
While the average selling price of homes has also increased by more than £6,500 to £237,078, after accelerating by 12.6 per cent, according to Nationwide Building Society today.
“Persimmon’s performance was strong in 2021 as we delivered more homes, built better and strengthened our platform for future growth,” CEO Dean Finch said in a statement.
Revenue inched higher from £3.33bn in 2020 to £3.61bn last year, as Persimmon reaped the rewards of rising house prices.
The housebuilder boss said that the new year’s trading has “started well”, with private sales rates ahead by around two per cent in the opening weeks and “a robust forward sales position of £2.21bn”.
“We expect to grow our outlet position in 2022 and are targeting volume growth of 4-7 per cent on 2021 levels,” Finch added, “Whilst maintaining our industry-leading margins, although we are mindful of the growing risk of an economic impact as a result of the tragic conflict in Ukraine.”
Persimmon expects to open around 75 new outlets in the first half of 2022, said Finch, as the housebuilder continues to fix the cladding and “fire related” defects in some Persimmon buildings, which it has been doing for around a year.