Persimmon has growth plan north of Border as it books £1bn profits

PERSIMMON flagged growth plans in Scotland as it reported UK annual pre-tax profits of over £1 billion, up 13 per cent.

The housebuilder also booked annual revenue growth of 4% for last year, reaching £3.74bn.

The company did not break out details on its Scottish sites, but said it is “pleased with how the Scottish market is coming through”. Group finance director Mike Killoran said: “We have substantial business in Scotland, we are proud to be constructing new homes in the Scottish market. With the three businesses, north, west and east, we delivered over 1,700 new homes to the [Scottish] market in 2018.

“We are pleased to be there and employ over 450 people in the Scottish business, so we are a substantial player in the Scottish market.”

He said: “The market in terms of customer demand is pretty similar (to England).

“It seems quite sound and resilient despite the challenges we face in terms of the exit negotiations with the EU.

“We are pleased with how the Scottish market is coming through and we hope to be able to continue to grow our business in Scotland.

“We have good visibility on new sites coming through, so [we are] investing in the future of the business in Scotland.”

Persimmon said that “whilst we recognise the heightened risk profile associated with the Brexit process, the group is in a strong position in its markets offering affordably priced homes, with a good range and choice of affordable house types available across our national outlet network”.

Tom Brown, of Ingenious, said: “Persimmon’s 2018’s pre-tax profits were broadly in line with forecasts however recent sharp falls in its share price and those of other housebuilders in the UK betray a sector which has a lot to lose from a disorderly Brexit and an economic downturn.”

The company also said that interim chief executive Dave Jenkinson will stay on in the role permanently.

He has been with the firm for 22 years and took on the position four months ago after previous chief Jeff Fairburn left amid controversy surrounding his £75 million pay package.

Mr Jenkinson said: “My focus is to build on this strong platform, maintaining our operational momentum, but also implementing a number of necessary new initiatives in customer care.”

It comes as the Help to Buy homes scheme is reportedly under Government scrutiny.