Persimmon (LON:PSN) has updated investors on its full-year performance this morning.
Highlights from the company statement:
• Focus on disciplined high quality growth delivers excellent full year performance
• Underlying profit before tax* increased by 23% to £782.8m (2015: £637.8m)
• Full year revenue up 8% to £3.14bn (2015: £2.90bn)
• Legal completions increased by 599 new homes to 15,171 (2015: 14,572) and average selling price increased by 3.8% to £206,765 (2015: £199,127)
• Operating margin* increased to 24.8% (2015: 21.9%); with second half improvement to 25.7%
• 41% increase in cash generation pre capital returns to £681m (2015: £483m)
• Return on average capital employed increased by 23% to 39.4% (2015: 32.1%)
• A further 18,709 plots of land acquired in the year, with 11,268 plots successfully converted from the
Group's strategic land portfolio
• Underlying basic earnings per share* increased by 19% to 205.6p (2015: 173.0p)
• Net cash of £913.0m at 31 December 2016 (2015: £570.4m)
• Forward sales ahead at £1.89bn (2016: £1.74bn), an increase of 9%
Nicholas Wrigley, Group Chairman, said: "Persimmon continued to perform strongly in 2016, meeting market demand with increased output and delivering disciplined high quality growth.
"The Group has now completed the first five years of its long term strategy which remains focused on growing Persimmon into a stronger, larger business while maintaining capital discipline and robust free cash generation. The strength of the Group's operating model is demonstrated by our ability to grow completion volumes by more than 60% and investing c. £2.6bn of cash in land through this period while simultaneously returning over £1.0bn of excess capital to shareholders.
"Customer activity in the early weeks of the 2017 spring season has been encouraging. The further increase in the Capital Return Plan demonstrates the Board's confidence in the Group's prospects."