A YORK-based housebuilder has reported a fall in profits but forward sales are looking strong thanks to low interest rates and government support.

Persimmon has reported profit of £783.8m in its annual results for 2020, which was down from £1.04bn in 2019.

During the year, the company built 13,575 new homes, down from 15,855 in 2019, although the selling price increased by about seven per cent.

It said the value of homes customers have put orders in for so far in 2021 is up 15 per cent year on year.

The FTSE 100 company said growth had been 'supported by low interest rates, good mortgage availability and ongoing Government support measures'.

The disruption at the start of the coronavirus pandemic hit sales and profits during 2020, but the results showed a stronger performance in the second half.

The final results were for the year ended December 31, 2020.

The Group is setting aside £75m towards any necessary remediation work to remove now-banned cladding on 26 multi-storey developments it has built.

Where Persimmon owns the building, it will lead this work, it said.

Where the Group no longer owns the building, it will support the owners and other parties in their efforts to ensure the buildings are safe for residents. Should a building owner fail to meet their obligations, Persimmon stands ready to provide the support to make sure this happens

Dean Finch, Group Chief Executive, said: “Persimmon delivered a robust performance in 2020 despite the challenges presented by the pandemic.

"I would like to commend our workforce for the effective way Covid-secure operating protocols have been adopted, protecting our customers, local communities and colleagues alike whilst maintaining effective on-site operations.

“I am particularly pleased we have delivered all this whilst continuing to see an increase in our HBF eight-week customer satisfaction score, with our current rates above the five-star threshold.

"We must build on this important progress and further enhance our build quality and customer care so we are known for both outstanding service as well as outstanding value. To achieve this we will further strengthen our build quality and independent inspection regime within the Persimmon Way.

"This will both drive efficiencies that will pay for these improvements and enhance our capabilities, enabling us to build a greater volume of homes at five-star. We have also set new environmental targets in line with the Paris Agreement and will seek to further develop the Persimmon Way to embed the specific measures that will deliver on these targets in the future.

“In addition, having adopted the principles of the Living Wage Foundation within our direct pay policies we are seeking full accreditation in working with our broader supply chain and development partners.

“Persimmon is a company of many strengths with great opportunities ahead. Combining the business’ entrepreneurial spirit and astute land buying with enhanced quality, efficiency and service standards will drive superior, sustainable value creation for our shareholders and broader stakeholders alike.”

The financial highlights include:

  • 13,575 completions of new homes in 2020, down from 15,855 in 2019.
  • The average selling price of its new homes was £230,534, up from £215,709 the previous year.
  • The total Group revenues was £3.33bn in 2020, a fall from £3.65bn in 2019.
  • The new housing revenues was £3.13bn, down from £3.42bn.