York-based house builder Persimmon delivers 'excellent performance' in 2021

The York-based house builder Persimmon today said it had delivered an excellent performance last year, as it continued to secure high quality land opportunities.

In an update ahead of its final results for 2021, Persimmon said it had seen good levels of demand throughout the second half of the year which had underpinned positive pricing conditions.

The group’s sales rates were around 20% higher than those in the second half of 2019, which the company said was a more comparable period given the pandemic-related disruption to the industry in 2020, reflecting Persimmon’s positioning in a strong market.

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The statement added: "Our customer enquiry levels have remained encouraging throughout the period despite the changes in the Government’s Help to Buy scheme and the stamp duty regime. Cancellation rates have remained in line with historical low levels throughout the period."

In an update ahead of its final results for  2021,  Persimmon said it had seen good levels of demand throughout the second half of the year which had underpinned positive pricing conditions.In an update ahead of its final results for  2021,  Persimmon said it had seen good levels of demand throughout the second half of the year which had underpinned positive pricing conditions.
In an update ahead of its final results for 2021, Persimmon said it had seen good levels of demand throughout the second half of the year which had underpinned positive pricing conditions.

Persimmon has delivered total group revenues of £3.61bn in the year, an increase on the £3.33bn recorded the year before.

Dean Finch, Group Chief Executive, commented: “Persimmon’s performance has been excellent through the year, delivering high quality growth. I would like to thank my colleagues and our wider workforce for their hard work and commitment in achieving the group’s strong performance.

"Whilst continuing to provide five star levels of customer satisfaction the business provided 14,551 new homes at an anticipated full year underlying operating margin of c. 28%, maintaining our industry-leading performance.

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“We have continued to secure high quality land opportunities, bringing over 20,500 new plots into the business in 2021 representing in excess of 140% of current consumption levels. This strong pipeline provides excellent momentum for the group’s future growth. Our teams are working diligently to bring these sites into construction as soon as possible to enable us to deliver much needed homes across the UK.

“Whilst the industry continues to face the ongoing operational and economic challenges as a consequence of the pandemic, particularly as the Omicron outbreak unfolded in the last six weeks of the year, the group continues to manage these ongoing challenges comprehensively. The long term fundamentals of the UK housing market remain strong and I am confident of Persimmon’s future success.”

Commenting on outlook, the statement said: "The longer term fundamentals of the housing market remain positive with resilient consumer confidence, demand continuing to outstrip supply across the UK and good levels of mortgage availability.

"Some nearer term uncertainties remain as the pandemic continues. Our vertical integration through our Brickworks, Tileworks and Space4 manufacturing facilities mitigate some supply chain disruption risk and the current positive pricing conditions are anticipated to accommodate potential cost inflation.

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"Interest rates, whilst anticipated to rise over the short term, remain at historically low levels, with owning a home, rather than renting, continuing to be the most affordable option.

"The group aims to continue to focus on helping as many families as possible to realise their life ambition of acquiring their own home by offering an affordable range and choice of high quality homes across all our new developments at compelling prices. The pandemic appears to have led many customers to re-assess the type of accommodation that they wish to enjoy. Persimmon is well placed to help communities fulfil these needs."

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Persimmon steams ahead amid strong customer demand

The board of Persimmon has also announced the appointment of Jason Windsor as chief financial officer. He is expected to join in the summer and will become an executive director on

the board at that time. He will succeed Mike Killoran, who announced in July 2021 that he would be retiring in mid-January 2022 after more than 25 years with the group.

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