Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

UK's Persimmon targets volume growth in 2022 after profit rise

Published 02/03/2022, 07:19
Updated 02/03/2022, 07:36
© Reuters. FILE PHOTO: Builders construct modular Space4 homes on a Persimmon development in Coventry, February 22, 2017. To match Insight BRITAIN-EU/CONSTRUCTION REUTERS/Darren Staples
PSN
-
PSMMY
-

(Reuters) -Britain's second-largest homebuilder Persimmon (LON:PSN) Plc said on Wednesday it expected to build 4-7% more homes in 2022, riding on strong housing demand, after the firm posted a 23% rise in annual profit.

UK homebuilders have forecast the undersupplied housing market to stay resilient even though Britain in January saw inflation rise at its fastest annual pace in nearly three decades, while the deepening Russia-Ukraine crisis adds further pressure on fuel prices.

"We are targeting volume growth of 4-7% on 2021 levels ... although we are mindful of the growing risk of an economic impact as a result of the tragic conflict in Ukraine," said Chief Executive Dean Finch.

Persimmon built 14,551 new homes in 2021, clearly above 13,575 units a year earlier.

The company said its current position of forward sales - the agreement between builder and buyer with a future purchase date - stood at 2.21 billion pounds ($2.94 billion), slightly lower than 2.27 billion pounds a year earlier.

The FTSE 100 firm's pre-tax profit for the year ended Dec. 31 came in at 966.8 million pounds, slightly below a company-compiled average forecast of 975 million pounds from 19 analysts.

© Reuters. FILE PHOTO: Builders construct modular Space4 homes on a Persimmon development in Coventry, February 22, 2017. To match Insight BRITAIN-EU/CONSTRUCTION REUTERS/Darren Staples

Persimmon's bigger rival Barratt Developments (LON:BDEV) and the third biggest player Taylor Wimpey (LON:TW), which reports its annual results on Thursday, have also forecast strong market activity this year.

($1 = 0.7527 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.