Persimmon hails resilient economy as sales leap

Persimmon said it is delivering more newly built homes in local communities across the regions

The '‹York-based firm said its focus on '‹family housing at affordable'‹ prices'‹ has attracted 6'‹ per cent'‹ more visitors to '‹its'‹ development sites than last year at this stage.Total forward sales revenue, including legal completions taken to date in 2017, is currently Â£2.56'‹bn, 11'‹ per cent '‹higher than last year'‹.So far in 2017, the group has sold 8,928 new homes to private owners with an average selling price of Â£229,500, an increase of 4.1'‹ per cent on last year.Its weekly private sales rate is running 12 per cent higher since the end of February.'‹The group said that d'‹espite the continued difficulties encountered with planning delays, '‹it has opened 67 of the 90 new sites planned for the first half of the year. The'‹ firm is currently developing 382 active sales outlets across the UK and is building new homes on all sites that have detailed planning consent. Persimmon said it'‹ remains confident '‹about'‹ the future prospects of the '‹g'‹roup.Analyst Robin Hardy at Shore Capital said: "'‹This is'‹ a positive trading update which, unusually, uses the word ‘excellent’ to describe the market climate. '‹"'‹Site visitors are up 6'‹ per cent'‹ (same as in February) and forward sales are up 11'‹ per cent'‹, although this can be heavily skewed by social housing contracts. '‹"'‹We are becoming more cautious on selling price momentum and mortgage market liquidity as '‹w'‹e progress through 2017 so there may be more headwinds later in the year. We do not expect any impact from the election at this stage.'‹"'‹George Salmon, equity analyst at Hargreaves Lansdown, added: "Persimmon's average selling prices and forward sales continue to grow, and the group is attracting more visitors to its sites. "Another confident update has helped the shares continue their strong run, since falling sharply in the wake of the Brexit vote.”Persimmon's board faced shareholders at its annual general meeting (AGM) at York Racecourse '‹on Thursday, but reports that large numbers of investors would vote against the group's remuneration report were unfounded.Over 90 per cent of investors voted in favour of the remuneration report and 97 per cent approved the remuneration policy.Shareholder advisory groups Glass Lewis and Pirc had recommended that investors oppose the remuneration report over concerns about the long-term bonus plans for executive directors.Pirc said shareholders should oppose the pay policy and incentive share plan because of "excessive" maximum rewards.Royal London Asset Management (RLAM) - one of Persimmon's major institutional investors - also said it was voting against the builder's remuneration report, saying current pay plans could hand chief executive Jeff Fairburn a potential package worth more than Â£100m.Ashley Hamilton Claxton, corporate governance manager at RLAM, said: "We have long-standing concerns about pay at Persimmon."The company's performance has been impressive, but we continue to believe that the sheer scale of remuneration available under Persimmon's current LTIP (long-term incentive plan) is excessive."But he said RLAM will support the wider pay policy, given Persimmon's move to limit director share awards for the next three years to twice annual salary.Rival builder Crest Nicholson suffered a shareholder revolt last month when more than 58'‹ per cent'‹ of investors voted against its remuneration report after the firm slashed profit targets that help determine performance-based bonuses for its directors.