Persimmon profits up in recovering market

Housebuilding: Perth base for new Scotland North region with 16 developments and looking for further growth

Persimmon, the UK’s biggest housebuilder by volumes, reported profits for 2015 up by more than a third.

The builder, which has launched major growth plans in Scotland with Perth the base of its new north region, said it had delivered an “outstanding” performance.

The York-based group posted a 34% rise in pre-tax profits in the year to December at £637.8 million.

Meanwhile, revenues went up 13% at £2.9 billion.

Persimmon said the housing market had remained buoyant, with the spring seeing private sales lift 13% from a year earlier.

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

The housebuilding sector bucked the volatile trends seen in the stock market last year, boosted by favourable economic conditions.

Government support measures also assisted, with the Help to Buy programme allowing purchases by buyers with deposits of only 5%.

There is also the Starter Homes initiative, which subsidises discounts of at least 20% for first-time buyers on newly-built properties.

Official figures earlier this month showed the average price of a home increased by £18,000 during last year.

Persimmon, with three subsidiaries, completed 8% more homes last year, totalling 14,572. The average price rose by 4.5% to £199,127.

The group sold 6,100 homes through Help to Buy in 2015, and its forward sales were 12% ahead of a year earlier at £1.68bn.

Shares in the group rose 5% after the results.

The Persimmon Homes Scotland North region is projected to support more than 1,000 jobs and deliver in excess of 400 new homes this year.

It will cover North Lanarkshire, Perth and Stirling, Fife and Grampian from a base in Perth employing 25 staff.

Scottish chairman John Cassie said it has 16 developments this year, and is looking for further opportunities to grow the business in a controlled manner.

Persimmon delivered an outstanding performance in 2015. NICHOLAS WRIGLEY

Picture: Kim Cessford. The Persimmon development at Limepark Crescent, Kelty. The York-based group, the UK’s biggest housebuilder by volumes, posted a 34% rise in pre-tax profits.