Persimmon's profits rising like house prices
Like the housing market it supplies, Persimmon had a good year in 2021. The number of homes it sold and the prices it sold them for increased.
Trading update highlights
New home completions 14,551 up 7% on 2020 (13,575)
Average selling price £237,050 up 3% on 2020 (230,534)
Group revenues £3.61bn up 8% on 2020 (£3.33bn)
Group operating margin c.28% (2020: 27.6%)
Cash at 31 December 2021 £1.25bn (2020: £1.23bn)
Forward Order book £1.62bn
down 4% on 2020, but up 19% on 2019
Outlook: long term robust, near term pandemic related uncertainty remains
Like the housing market it supplies, Persimmon had a good year in 2021. The number of homes it sold and the prices it sold them for increased. As a result, profits are rising. Persimmon has been criticised in the past for putting profits ahead of people. However, customer satisfaction like Persimmons' profits are also increasing and since October last year, 92% of customers would recommend Persimmon to a friend.
Persimmon is also doing the right thing by customers caught up in the cladding issue, last year it made a commitment that leaseholders in buildings it had constructed, including all those above 11 metres, should not have to cover the cost of cladding removal.
The strength of the forward order book suggests that 2022 will be another good year for Persimmon, its customers and its shareholders.