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“Confident” market sees Persimmon’s profit increase

News   •   Feb 27, 2017 13:34 GMT

One of the UK’s biggest housebuilders, Persimmon, has seen profits rise by nearly 25% in what the company has described as a “confident market”.

Profits increased to £782.8M, up 23% on last year’s figures and saw revenue grow by 8% to £3.14Bn.

The number of new homes sold by Persimmon Homes last year was 15,171, up 599 from 2015’s 14,572.

The selling price of the homes also rose by 3.8% to £206,765, up from £199,127.

The importance of the government’s Help to Buy scheme in supporting first time buyers was highlighted for its impact on market conditions.

The group’s own offsite manufacturing capability will expand with the construction of its own factory for the production of concrete bricks that will be ready for action in April.

Space 4, Persimmon’s own off site timber frame business, will also increase production.

It is envisaged these measures will secure the supply of housebuilding key components; provide more efficiency and greater control over building costs.

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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