Persimmon’s pre-tax profits in 2018 were over £1.1bn, and the company particularly benefited from the Government’s Help to Buy scheme.
Persimmon reported annual profits of £1.091 billion, an increase of 13% from £966 million in 2017. This was primarily a result of help to buy, which accounted for almost half of the homes sold.
However, the Housing Minister has now embarked on a review of this plan, particularly in light of Persimmon’s rapidly increasing profits.
The company also announced that interim CEO Dave Jenkinson will remain in his role leading the company.
Last year, former chief executive Geoff Fairbairn left the company following a shareholder backlash over his £75m dividend.
Commenting on the results, Tom Brown, Managing Director of Real Estate at Ingenius, said: “Persimmons’ 2018 pre-tax profits were broadly in line with expectations, but the recent plunge in its share price and those of other UK housebuilders belies a sector that has been underperforming.” Disorganized EU There is a lot to lose from withdrawal and an economic downturn. The company has been in a difficult situation ever since the scandal surrounding the bonus given to its current former CEO was revealed.
“The Government is right to focus on house builders as a condition of their inclusion in the main Help to Buy scheme that has underpinned pricing in the sector since it was announced in 2013. Alongside financial governance, best practices should be promoted across housebuilders’ industry related to manufacturing quality and after-sales service. This, combined with local councils demanding infrastructure funding, ensures that everyone shares in the benefits that new development brings to their communities. ”
Persimmon stock (LON:PSN) is trading +1.54% as of 9:50 AM GMT.
