Persimmon share price surges on 34% profit rise

Persimmon (LON:PSN) has been the biggest riser on the FTSE 100 today, jumping as much a five percent in early trading, after the UK’s largest housebuilder by volumes reported “outstanding” final results.

Persimmon revealed today that it had increased its annual underlying profit before tax by 34 percent to £637.8 million. Revenue for the year to 31 December 2015 had also risen 13 percent to £2.9 billion. That was driven by an eight percent increase in legal completions climbing to 14,572, and a 4.5 percent increase in the average selling price to £199,127.
“Persimmon delivered an outstanding performance in 2015, supported by improving customer sentiment and a mortgage market which is responding to customer demand,” chairman Nicholas Wrigley said.

Following the bumper year, Persimmon pledged more dividends for shareholders, adding an extra £860 million to its longer-term dividend plans set out in 2012. The additional windfall means investors are now on track to get a cash return of £2.76 billion, or £9 a share, by 2021, a 45 percent increase from the original plan of £1.9 billion, or £6.20 a share, set out four years ago.
The blue-chip company also highlighted that the outlook was looking bright, with forward sales including legal completions 12 percent ahead of 2015 so far. “Customer activity in the first seven weeks of the 2016 spring season has been encouraging,” Wrigley remarked.
As of 13:07 GMT, Persimmon’s share price was 4.26 percent up at 2,057.00p, bucking the downbeat UK stock market trend. The FTSE 100 index had meanwhile declined 0.64 percent to stand at 5,998.80 points.
As of 13:19 GMT, Tuesday, 23 February, Persimmon plc share price is 2,063.00p.