Persimmon share price rises as group posts results and appoints CEO

on Feb 26, 2019
Updated: Mar 11, 2020

Shares in Persimmon (LON:PSN) have advanced in London this morning as the blue-chip housebuilder updated the market on its full-year performance and announced that it had appointed a new chief executive. The update comes amid worries over the group’s participation in the government’s Help to Buy scheme.

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As of 10:22 GMT, Persimmon’s share price had added 2.68 percent to 2,415.00p. The group’s shares are outperforming the broader UK market selloff which has seen the benchmark FTSE 100 give up 1.21 percent to 7,096.53 points.

Persimmon posts updates

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Persimmon announced in a statement this morning that its revenue had climbed four percent to £3.74 billion last year, generating profit before tax of £1.09 billion, up 13 percent year-on-year. The company’s net cash, however, dipped to £1.05 billion, from £1.3 billion in the prior-year period.

Persimmon declared interim and final dividends of 125p and 110p per share, respectively, for last year.

The company announced in a separate statement that it had appointed David Jenkinson as CEO with immediate effect. Jenkinson has been with the blue-chip group in a number of roles for 22 years, and was appointed as interim chief executive in November last year, when Jeff Fairburn stepped down following a row over his £75-million pay package. 

Analysts weigh in on group

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Proactive Investors quoted Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, as commenting that record profits which top £1 billion in what is meant to be a sluggish market is a solid effort and is ‘certainly a strong opening-bell’ from new CEO Jenkinson.

She, however, cautioned that “with Brexit galloping into view, the housebuilders need to be on their guard, and they’d be forgiven for getting a bit complacent”.

As of 10:47 GMT, Tuesday, 26 February, Persimmon plc share price is 2,415.00p.

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