House builder Persimmon’s profits soared by a quarter last year to close-on a billion pounds. The price of shares in the company soared by 11 per cent this morning after it announced a pre-tax profit of £977.1 million for 2017.
Revenue for the year, £3.42 billion, was up by nine per cent.
The group, which includes the Charles Church brand, said it “is well placed to deliver a further increase in new home construction across the UK in 2018 where the local planning environment allows.”
Persimmon, whose bonus payments for chief executive Jeff Fairburn and two other directors were reduced after an outcry from big investors, is compensating shareholders with a special dividend.which will take the total dividend payment for the year 235p.
This equates to a return of 8.5 per cent, the highest in the Footsie 100 at present.
Last year the company completed completion 16,043 new homes (up 6%) and the average selling price rose by 3% £213,300.
One of the factors helping boost sales at Persimmon and other house builders has been the government’s Help to Buy scheme, which allows first-time buyers to purchase new-build properties with deposits of just 5%.
Taylor Wimpey results for last year are due tomorrow.