Revenues and profits drop at listed home builder
York-headquartered house builder Persimmon has reported total Group revenues of £3.33bn in 2020, down from £3.65bn the previous year.
Publishing its final results for the year ended 31 December 2020, the company also records pre-tax profits of £783.8m in 2020, a fall from 2019’s £1,040.8m.
Persimmon managed 13,575 new home completions in 2020, compared with 15,855 in 2019.
And it had about 300 developments in progress across the UK in 2020, compared to 345 in the prior year.
The company adds that it has strong liquidity, with cash held of £1.2bn and land creditors reduced by £106m to £329m at 31 December 2020 (2019: £435m), providing significant opportunity to grow the business.
It also records strong forward sales levels of £2.3bn, 15% higher year on year, supported by low interest rates, good mortgage availability and ongoing Government support measures.
Its report notes: “We are targeting a full return to 2019 levels of new home completions in 2022.
“From 2023, with a stable market, we expect our enhanced quality, service and efficiency capabilities to provide the opportunity to grow further. We are focused on bringing more outlets into production to support these targets.
“Despite near term uncertainties as the economic and social disruption of the pandemic continue and the full impact of the UK’s exit from the EU unfolds, the longer term fundamentals of the UK housing market remain strong.”
Persimmon chief executive Dean Finch
Dean Finch, Group chief executive, said: “Persimmon delivered a robust performance in 2020 despite the challenges presented by the pandemic.
“I would like to commend our workforce for the effective way Covid-secure operating protocols have been adopted, protecting our customers, local communities and colleagues alike whilst maintaining effective on-site operations.
“I am particularly pleased we have delivered all this whilst continuing to see an increase in our HBF eight-week customer satisfaction score, with our current rates above the five-star threshold.
“We must build on this important progress and further enhance our build quality and customer care so we are known for both outstanding service as well as outstanding value.”
