Persimmon records 9% rise in new home completions
9 January 2013National housebuilder Persimmon plc has reported a 9% growth in annual legal completions of new homes and anticipates further growth in the number of sites it is selling from.
In a trading update on January 8, the company also announced that its chief executive for the past seven years – Mike Farley – has decided to retire at the AGM in April.
Persimmon’s completions in 2012 were up to 9,903 (2011: 9,360), with average selling prices up almost £10,000 (6%) to £173,400.
Total sales amounted to £1.72bn (2011: £1.54bn), a 12% increase. It anticipates the final full-year underlying operating margin to be in the region of 13% (2011: 10%).
Profits will be released in the group final results on February 25. Forward sales at the year end totalled £645m (2011: £615m), while the company held about £200m in cash at December 31, 2012.
“The combination of improved margins, strong cash generation and substantial land acquisition places the business in a robust position for the delivery of our long-term strategy,” the company said.
Jeff Fairburn, currently group managing director and north division chief executive, has been appointed to succeed Mr Farley as group chief executive.
