Persimmon upbeat amid backlash by shareholders
HOUSEBUILDER Persimmon has said the property market remains “solid” as it prepares to face down investors amid concerns over pay plans for its top bosses.
In a trading update ahead of its annual general meeting for shareholders yesterday, the Charles Church group said forward sales were around 8% higher year on year at £2.76bn since January 1.
It added that pricing conditions continue to be firm across the regions, with the average selling price up to around £236,500 across 9,048 homes sold in the private market, up 1% from 8,928 a year ago.
“Our weekly private sales rate per site since the start of the year of around 0.85 ... reflects solid market conditions,” it added.
The figures come as the chairman of Persimmon yesterday apologised “unreservedly” to shareholders over the housebuilder’s handling of executive pay.
Nigel Mill, chairman on an interim basis, said at the company’s annual general meeting that the debacle was a matter of “profound regret”.
It comes after boss Jeff Fairburn’s pay packet sparked outrage among politicians and shareholders.
Mr Fairburn is in line to pocket a near £75m payout, including a £25m share payout in the summer.
Earlier this year, shareholders and politicians united to condemn what would have been an even higher £100m payout, until Mr Fairburn voluntarily moved to calm the furore by handing back £25m in bonuses.
Mr Mill said the row has overshadowed the group’s stellar performance.
“I recognise that there has been significant strength of feeling from some shareholders over this issue,” he said yesterday.
“And so please let me take this opportunity to apologise unreservedly to our shareholders. This could have all have been handled better. Indeed it should have been.
“It is a matter of profound regret that we got to the position where we had a company with an exceptional management team, delivering exceptional, market-beating performance, that has been overshadowed by a row over pay.”
The group’s recent annual report also showed that managing director Dave Jenkinson pocketed £20.4m, up from £1.4m in 2016.
Last month it confirmed plans for thousands of new homes at the site of a former huge opencast mine in south Wales.
After a competitive bidding process, Persimmon has confirmed it has acquired hundreds of acres of land at Llanillid, between Bridgend and Llantrisant.
The site, which has been remediated following the cessation of mining by Celtic Energy in the 1990s, is also expected to see a wave of commercial developments that could provide thousands of new jobs. The residential development, which will be known as Cantref Mawr, could over time see 5,000 new homes built.
The initial plans are for 1,850 properties as well as commercial units, particularly to the south of the site which runs alongside the M4. And there are plans for the scheme to be accessed via a new M4 junction.
Such an infrastructure project could potentially get financial backing from the £1.2bn City Deal for the Cardiff Capital Region.
Persimmon has acquired more than 700 acres of land at Llanillid, formerly owned by Cofton Wales, from administrators KPMG.
The land sales process was overseen by the Cardiff office of property advisory firm Savills.