Persimmon posted a 25 per cent rise in annual profit on Tuesday, boosted by a rise both revenue and annual selling prices.
Pre-tax profit hit £966.1 million for the year, with its revenue rising 9 percent to £3.42 billion. Legal completions of new homes increased to 16,043, up 872, and the group’s figures were boosted by an improved average selling price, up 3.2 percent to £213,321.
Acting chairman Nigel Mills said Persimmon’s performance in 2017 had been “excellent” adding that the group’s focus on “high quality growth, coupled with capital discipline, has accelerated the delivery of our strategic objectives and generated record returns for our shareholders.”
“The start to the spring sales season in 2018 has been encouraging with the group’s private sales rate per site being 7 per cent higher than last year at this point”, he continued, saying that “the further increase in the capital return plan demonstrates the board’s confidence in the group’s prospects.”.
The company also declared an interim of 125p and a final dividend of 125p and 110p saying that surplus capital meant it was increasing its capital return program.
Persimmon (LON:PSN) shares are currently trading up 10.09 per cent at 2,739.00 (0813GMT).
