13th Jan 2022 09:12
(Alliance News) - Persimmon PLC announced on Thursday an "excellent" 2021 performance as it upped new home completions and average selling price.
The York, England-based housebuilder said it delivered 14,551 new home completions in 2021, up 7.2% from 13,575 in 2020, with an average selling price of GBP237,050, up 2.8% from GBP230,534.
The company explained that the average price rise reflected, in part, the greater proportion of new homes sold to its housing association partners compared with last year. Persimmon said it delivered 2,533 new homes to its housing association partners this year, representing 17% of the total homes delivered.
Persimmon said total revenue in 2021 was GBP3.61 billion, up 8.4% from GBP3.33 billion the prior year. New housing revenue was GBP3.45 billion, up 10% from GBP3.13 billion.
Addressing sector concerns, Persimmon said it agreed with the UK government that leaseholders should not have to pay to remove flammable cladding. Persimmon said it constructed only a "very small proportion" of buildings affected by this issue, which caused the deadly fire at the Grenfell Tower in 2017. In common with the rest of the housebuilding industry, it will shortly begin paying the cladding levy announced in the UK budget, it noted.
In addition, Persimmon has appointed Jason Windsor as its new chief financial officer, hired from insurer Aviva PLC to succeed Mike Killoran, who will be retiring in mid-January. Aviva also made an announcement, stating that the search for a new CFO is underway.
Chief Executive Dean Finch said: "Whilst the industry continues to face the ongoing operational and economic challenges as a consequence of the pandemic, particularly as the Omicron outbreak unfolded in the last six weeks of the year, the group continues to manage these ongoing challenges comprehensively. The long term fundamentals of the UK housing market remain strong."
Shares in Persimmon were down 3.0% at 2,542.87 pence on Thursday morning in London, while Aviva's shares were 0.5% lower at 432.90p.
By Heather Rydings; [email protected]
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