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Persimmon expects 2017 profits to beat market expectations

The group said  that revenues for 2017 climbed 9 per cent to £3.42bn

Stephen Little
Tuesday 09 January 2018 10:10 GMT
The company aims to “support of the Government’s desire to increase housing supply across the UK”.
The company aims to “support of the Government’s desire to increase housing supply across the UK”. (Rex)

Housebuilder Persimmon said that it expects full-year profits for 2017 to be “modestly” ahead of market consensus after preliminary results for the year showed that revenues and demand for new homes had risen.

The group in a trading statement on Tuesday said that that revenues for the 12 months to the end of December 2017 climbed 9 per cent to £3.42bn, with the completions of new homes increasing by 6 per cent to 16,043. The average selling price increased by 3 per cent to around £213,300.

The company said it continued to experience “healthy” demand for new homes through the autumn sales season, with forward sales of around £1.4bn – up 10 per cent from the same point in 2016.

Its final results for 2017 will be released on 27 February.

“We anticipate our pre-tax profits for the year will be modestly ahead of market consensus,” Persimmon said.

It opened new offices in Mansfield and Ipswich and 197 new sales outlets last year and aims pursue 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,” the statement said.

“However, we are keen to deliver further improvement in our housing output and remain ready to invest wherever the local planning environment is supportive,” it added.

Last month, Persimmon chairman Nicholas Wrigley and the head of its pay committee, Jonathan Davie, quit the firm amid a dispute over excessive management pay.

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