HOUSEBUILDER Persimmon Plc posted “excellent” results as it overcame a challenging market to lift profits and revenue.
The parent of Leeds-based Persimmon Homes West Yorkshire, increased group revenue by 10.5% to £1.57bn during 2010 while pre-tax profits before one-off items soared to £95.5m from £7m the previous year.
The group completed 9,384 homes at an average selling price of £167,249 – an increase of 5.7% on the previous year.
The improvement in price was due to a change of mix of homes sold as well as an underlying increase in selling prices of about 3%.
Chairman John White said: “Persimmon plc has delivered an excellent performance despite challenging conditions.
“These results reflect the successful implementation of our strategy of firm cost control, maximisation of sales revenues and pursuit of strong cash generation.”
During the year, Persimmon reduced debt by more than £215m and reinstated dividends while continuing to invest in its land bank.
The group continued to invest in the business throughout 2010, acquiring about 10,200 plots of replacement land and opening about 165 new sites.
Wayne Gradwell, managing director for Persimmon Homes West Yorkshire, said his company achieved its targets in terms of completing plots and meeting margins.
He said: “In addition, we have benefited from the group’s financial strength which has contributed to us being an extremely successful in the land buying market and we have also secured eight new outlets during 2010.
“We continue to make steady progress in the trading out of our long term development sites and these are quickly being replaced by new developments which have been purchased at current market value.
“The company has already commenced on two of the new sites in the last quarter of 2010 and another four developments are targeted to commence in the first half of 2011.
“We are extremely well placed to continue to develop and grow in this year, despite the current difficult market conditions.”