Yahoo Finance Persimmon made £66,000 per house as profits jumped 23%
Persimmon (PSN.L) made pre-tax profits of £966.8m ($1.2bn) for last year as the house builder racked in a £66,000 profit per house.
The company reported revenues of £3.61bn, up from £3.33bn, and a 23% jump in pre-tax profit from £783.8m to £966.8m as it benefited from rising house prices.
Persimmon built 14,551 new homes in 2021, above 13,575 units a year earlier, with an average selling price of £237,078 and profit of £66,442 per home.
"We are targeting volume growth of 4-7% on 2021 levels although we are mindful of the growing risk of an economic impact as a result of the tragic conflict in Ukraine," said chief executive Dean Finch.
In the year to 31 December 2021 Persimmon made a pre-tax profit of £966.8m, up 23% on 2020’s £783.3m. Turnover was £3.61bn.
Read more: UK house prices surge past £260,000 for first time despite inflation concerns
Finch said the company maintained build rates at pre-COVID levels and improved customer service during the year.
He added: “An agile approach across the business ensured we navigated the supply chain challenges posed by the pandemic, with our Brickworks, Tileworks and Space4 manufacturing facilities providing security of supply for essential materials and helping us maintain our operating efficiency.”
The company will expand production at its facilities this year as it plans for further growth.
The York based group said its current position of forward sales – the agreement between builder and buyer with a future purchase date – stood at £2.21bn, slightly lower than £2.27bn a year earlier.
Read more: Surge in mortgage approvals fuels UK property boom
The housebuilder also warned it could see disruption to the UK economy as a result of the conflict in Ukraine.
“We are mindful of the growing risk of an economic impact as a result of the tragic conflict in Ukraine,” Finch said.
Persimmon also said it would not claim cash from the government’s building safety fund.
The company had previously put aside £75m to fund any cladding issues following the Grenfell tragedy. It has identified 33 sites in need of work.
