THE latest financial results from a North Yorkshire-based homebuilder show they “continued to perform strongly”, with revenue up by eight per cent.
According to Persimmon’s annual figures, released yesterday, the company made £782.8m profit last year, up 23 per cent from the previous year.
The firm also bought 18,709 new plots of land, and halfway through its ten year strategic plan announced new home legal completions were ahead by more than 60 per cent since 2012.
In the chairman’s statement, the ten year plan is described as focusing on “delivering disciplined high quality growth” by “opening new development sites” and building projects to meet market demand.
Nicholas Wrigley, group chairman, said: “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 per cent and investing [circa] £2.6b of cash in land through this period while simultaneously returning over £1.0bn of excess capital to shareholders.”
Mr Wrigley said Persimmon had opened five new house building businesses in the last two years, to support the growth of the group, and increase its advantage in the market.
He said recent activity suggested the company’s long term strategy appeared to be working, and five years in, suggested future success.
The company’s capital return plan - announced in 2012 to deliver £1.9b of “surplus capital” to shareholders by 2021 - is also making strong progress, and was increased last year, with £1.1b already returned to shareholders. The plan has also been increased, so about £2.76b will be returned to shareholders in coming years.
Mr Wrigley said: “Group operational performance is well ahead of our original expectations.
“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.”