Persimmon pre-tax profit surges 23% in 2016

The housebuilder’s underlying profit before tax rose 23% to £782.8m from £637.8m in 2016. Revenue for the year was up 8% to £3.14bn from £2.90bn in 2017.

Legal completions increased by 599 new homes to 15,171 and the average selling price increased by 3.8% to £206,765 (2015: £199,127).

The Group’s continued outperformance in 2016 is enabling a further increase in the Capital Return Plan, with an additional payment of 25 pence per share, increasing the total value of the Plan by c. £77m to £9.25 per share.

Nicholas Wrigley, Group Chairman, said, “Persimmon continued to perform strongly in 2016, meeting market demand with increased output and delivering disciplined high quality growth.

“The Group has now completed the first five years of its long term strategy which remains focused on growing Persimmon into a stronger, larger business while maintaining capital discipline and robust free cash generation.

“The strength of the Group’s operating model is demonstrated by our ability to grow completion volumes by more than 60% and investing c. £2.6bn of cash in land through this period while simultaneously returning over £1.0bn of excess capital to shareholders.

“Customer activity in the early weeks of the 2017 spring season has been encouraging. The further increase in the Capital Return Plan demonstrates the Board’s confidence in the Group’s prospects.”

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