Persimmon profit jumps 50%

Housebuilder Persimmon has reported a 50% jump in its pre-tax profit as revenue rose 21%.

In its annual results Persimmon reported a pre-tax profit, before exceptional items, of £323m in the year to 31 December 2013, up from £215m the previous year.

Its total pre-tax profit of £337m was boosted by a one-off credit of £14m due to revisions to the net value of its ongoing projects and land bank.

Persimmon also reported a rise in revenue to £2.1bn in 2013, up from £1.7bn in 2012.

The firm completed 11,528 homes over the year, up 16% from 2012, with the average selling priceincreasing 4% to £181,861.

Jeff Fairburn, group chief executive of Persimmon, said the firm had achieved “strong results” in 2013 and outperformed the firm’s original plans for the year.

He said: “Persimmon responded well to the significant increase in customer demand stimulated by the combination of increased lending by the major mortgage lenders, the introduction of Help to Buy by the government in April 2013 and an improvement in the UK economic outlook, and delivered a significant increase in build volumes in the year.”

Fairburn paid tribute to the firm’s staff whom he said had “worked tremendously hard” to meet “very demanding build programmes”.

He added: “The group entered 2014 with a very strong forward order book of £908m of sales reserved and contracted, creating a strong platform for further sales growth in the new year.”