House building giant Persimmon has released its final results for 2018 and revealed a new boss following the controversial departure of its previous CEO over a £75m bonus.
Its results show that last year the company was the first house builder in the UK to make annual profits of more than £1 billion, increasing them by 13% on a turnover of £2 billion. It built 16,449 homes which it sold at an average price of £215,563.
Persimmon has released its results just a day after the Secretary of State for Housing James Brokenshire revealed that he is to review its status as a Help to Buy provider following allegations of unfair leasehold terms at some of its sites.
But City investors are clearly not worried by the potential loss of Help to Buy status for the company; its share price increased sharply yesterday as news of its huge profits leaked out.
Billion pound milestone
Persimmon’s group operating profits were £1.083 billion last year, up from £995 million during 2017. The company also increased its new homes operating margin, which now stands at nearly 32%, while its ROI on capital last year was 52.8%. The company also bought 17,092 plots of land last year.
Persimmon has also appointed 50-year-old Dave Jenkinson as its new Group Chief Executive (pictured, above), who has been in the role since November last year and who has worked at the company for 22 years.
In a nod to the furore that surrounded its previous CEO Jeff Fairburn’s huge pay packet prior to his premature departure, Jenkins is not to receive a bonus this year or participate in its infamous Share Performance Plan.