House builder Persimmon posts bumper results

February 24, 2016

Persimmon is the latest house builder to  benefit from the UK’s chronic housing shortage after reporting a sharp increase in annual profits yesterday. Higher prices and higher demand driven by a lack of supply has pushed sales up by 13% to £2.9bn in the year to the end of December.

Nicholas Wrigley, Group Chairman, reportedly said: “Persimmon delivered an outstanding performance in 2015, supported by improving customer sentiment and a mortgage market which is responding to customer demand.

 “It is now four years since we launched our long term strategy focused on growing Persimmon into a stronger, larger business while maintaining capital discipline and delivering robust free cash generation. The Group’s ability to grow completion volumes by more than 55% through this period while simultaneously returning £733m of excess capital to shareholders underlines the strength of its operating model.  

 “Customer activity in the early weeks of the 2016 spring season has been encouraging and today’s further £860m enhancement to the Capital Return Plan to a total of £9.00 per share is a measure of the Board’s confidence in the Group’s future progress.”

To see Final Results 2015 in full on Persimmon website click here

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Almost one in five first-time buyers seeking max 60% LTV mortgages

Almost one in three (31%) first-time buyers are opting for 90% LTV mortgages, and a further 10% are looking at 95% LTV options. This hints at many first-time buyers relying on 5-10% deposits. This translates to £13,650 to £27,300 at the average UK house price of £272,995 [source]. Almost one in five (17%) first-time buyers…
Read More →
Breaking News

Property values bounce back in October

The latest Halifax Property Index shows that: – House prices rose by +0.6% in October vs a fall of -0.3% in September Fourth time in last five months that the average price has increased Average property price now £299,862, edging up to a new record high Annual rate of growth rises to +1.9% (up from…
Read More →
Breaking News

UK house prices rise at fastest pace since January

House prices rose by +0.6% in October vs a fall of -0.3% in September Fourth time in last five months that the average price has increased Average property price now £299,862, edging up to a new record high Annual rate of growth rises to +1.9% (up from +1.3% in September) Mortgage approvals reach highest level…
Read More →
Rightmove logo
Breaking News

Rightmove accelerates AI product delivery to surface more potential sellers and buyers for agents

The UK’s largest property platform Rightmove is today announcing a series of AI developments for consumers and partners, to help agents reach more potential sellers, buyers and renters. There are currently 27 AI initiatives in development, as Rightmove makes AI technology central to its platform to benefit partners and home-movers. Four new developments – two…
Read More →
Estate Agent Talk

How to Pick the Best Option for your Business’ Broadband

Having a dependable broadband connection is crucial for any business. Whether you run a small office or a larger company, a slow or unstable connection can disrupt work, affect communication, and reduce productivity. Picking the right broadband package does not have to be complicated, but it does require careful thought about your business’s specific needs…
Read More →
bank of england interest rate
Breaking News

Bank of England Hold’s Interest Rates at 4%

With the Bank of England holding Interest Rates at 4%, here are some thoughts from the Industry. Matt Smith, Rightmove’s mortgages expert: “Ahead of one of the most widely anticipated and discussed Autumn Budgets of recent times, it was unlikely the Bank would go for another interest rate cut so close to the announcement and…
Read More →