UK housebuilder Persimmon expects full-year profits to be slightly ahead of forecasts, as the healthy demand for new homes continues.
Revenues at the group rose 9% to £3.42 billion in 2017, with completion volumes growing 6% to 16,043. The group’s average selling price increased by 3% to £213,300.
Persimmon said that it experienced healthy customer demand for new homes through the autumn sales season, with the value of its forward sales book standing at £1.35 billion, 10% ahead of 2016.
As a result, the firm said that it anticipates pre-tax profits for the year to come in “modestly ahead of market consensus”.
Persimmon added: “The group continues to pursue disciplined high-quality growth in its regional markets in support of the Government’s desire to increase housing supply across the UK.
“We remain mindful of market risks including those associated with the uncertainty arising from the UK leaving the EU.
“However, we are keen to deliver further improvement in our housing output and remain ready to invest wherever the local planning environment is supportive.”
The housebuilder said that completion volumes grew 6% to 8,249 in the second half of the year versus the first six months.
Executive pay awards
As PA reports, the results come as Persimmon is embroiled in a row over excessive executive pay, which led to chairman Nicholas Wrigley’s resignation in 2017.
It follows investor consternation over a long-term incentive plan introduced in 2012, which could see the management share £600m depending on profit and housebuilding targets.
Chief executive Jeff Fairburn is in line for the biggest payout, which is set to top £100m.
Following the latest trading update from Persimmon, the group’s share price rose just under 1% to 2,761.