Persimmon sales improve, Farley to retire

House builder Persimmon said full year sales rates and prices improved on the same period last year as it announced that Chief Executive Mike Farley will retire at the AGM in April.

House builder Persimmon said full year sales rates and prices improved on the same period last year as it announced that Chief Executive Mike Farley will retire at the AGM in April.

The volume of new homes legally completed for the year ended December 31st 2012 increased by 6% to 9,903 from 9,360 in 2011.

The average selling price also rose 6% to around £173,400 versus £163,999 the year before. Revenue for the period increased to £1.72bn, up 12% on the previous year.

As previously indicated, underlying operating margin continued to strengthen in the second half and it anticipates that it will be roughly 13% for the full year compared to 10.0% in 2011, with its second half margin over 13.5%.

"Margin improvement remains a key part of our strategy, with the medium term aim of returning to underlying operating margins within the range of 15% to 17%," it said in a company update.

"We believe we have made further encouraging strides towards achieving this objective through the launch of new sites offering attractive returns and exercising firm control over our costs."

Persimmon held £200m of cash balances at December 31st 2012 compared to £41m before.

CJ

Recommended

How to profit from India’s high-tech recovery
Share tips

How to profit from India’s high-tech recovery

Professional investor David Cornell of the India Capital Growth Fund, selects three of his favourite Indian stocks to buy now.
27 Sep 2021
Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021