Revenues soar at Persimmon

Jeff Fairburn, Persimmon
Jeff Fairburn, Persimmon
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Persimmon boosted revenues to £3.42bn in 2017, a rise of nine per cent on the previous year as it hinted at profit levels ahead of market expectations.

The York-based builder publishes its final results for 2017 on February 27 where it is expected to beat previous predictions. ary 2018.

Completed volumes were strongly ahead by 872 new homes, a six per cent increase, to 16,043 while the group’s average selling price increased by 3% to c. £213,300 (2016: £206,765).

A statement said: "We continued to experience healthy customer demand for new homes through the autumn sales season and the value of our forward sales at 31 December 2017 of c. £1,355m was 10% ahead of the prior year (2016: £1,234m). Second half legal completion volumes of 8,249 were 455 stronger than for the first half of the year (H1: 7,794), an increase of 6%.

"We anticipate our pre-tax profits for the year will be modestly ahead of market consensus."

Persimmon successfully opened 197 new sales outlets during the year and is building on all sites which have an implementable planning consent. The group now has 375 active sales outlets which we anticipate will provide good support to sales moving into the 2018 spring selling season.

A spokesperson said: "We have made excellent progress in expanding our manufacturing capabilities to support our desire to achieve sustainable growth.

"Our new brick manufacturing plant in Harworth, near Doncaster, is now complete and deliveries of bricks to site have commenced, underpinning our ability to increase house building volumes.

"The Group’s Space4 insulated frame build-system is also an important contributor to our overall construction capacity and we anticipate further investment in expanding this capability over the coming years.

"We continue to invest for future growth and have acquired c. 17,300 plots of new land at excellent margins in over 80 locations throughout the UK during the year. We remain mindful of market risks including those associated with the uncertainty arising from the UK leaving the EU. However, we are keen to deliver further improvement in our housing output and remain ready to invest wherever the local planning environment is supportive."