13th Jan 2021 08:24
(Alliance News) - Persimmon PLC on Monday said it produced a "robust performance" for 2020 despite Covid restrictions and pandemic-related uncertainties.
For the year, the FTSE 100 housebuilder posted revenue of GBP3.3 billion, down 8.8% from GBP3.65 billion recorded for 2019. New home completions totalled 13,575, down from 15,855 the year prior. However, average selling price rose to around GBP230,500 from GBP215,709.
Dividends paid in 2020 were down 53% to 110 pence from 235p in 2019.
Persimmon noted that while trading was hurt in the first half as Covid-19 lockdown measures caused delays and resulted in an increase in the time taken to progress and complete sales contracts, it saw a stronger second half. In the last six months of the year, average weekly sales rate per site were 39% higher than the second half of 2019.
Looking ahead, the York-based company warned that while the vaccine rollout has commenced, uncertainties surrounding the potential impact of the pandemic remain, especially in relation to unemployment levels and consumer confidence. It also expressed concern about the potential impact of an end to the stamp duty holiday in the UK, due at the end of March.
"Despite the impact of the unprecedented events of 2020, the levels of customer interest Persimmon has experienced, particularly through the second half of the year, demonstrate the resilient demand for new homes which has been supported by the government response to the pandemic and the group's positioning in its markets," Persimmon said.
"The group's strategy, which is designed to help mitigate the impact of downside risks to the housing cycle, provides the robust platform required to continue to generate superior long term value for the benefit of all stakeholders in the business."
Forward sales at December 31, were GBP1.69 billion, up 25% from GBP1.36 billion at the same time in 2019.
Full 2020 results will be published on March 3.
Shares in Persimmon were trading 2.2% lower at 2,723.00 pence each on Wednesday morning in London.
By Ife Taiwo; [email protected]
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