Profits soar by 50% at North property firm Persimmon

Persimmon boss John Eynon has praised staff for helping to deliver a 21% life in sales and profits rise of 50%

An artist impression of a home being built by Persimmon Homes North East at Newcastle Great Park
An artist impression of a home being built by Persimmon Homes North East at Newcastle Great Park

The managing director of regional housebuilder Persimmon has congratulated his team after the business posted a 21% lift in sales to £2.1bn.

The company, which has traded since 1972, legally completed 11,528 sales in 2013, an increase of 16% over the previous year, and the rise in revenues coupled with the improvement in margins led to underlying operating profits soaring by 50% to £333m.

The underlying profit before tax of £330m was 49% stronger than last year’s £222m.

Locally, the business increased its build rate across the North East, opening six new developments in 2013.

In 2014, building work is due to start on seven sites including one in Bedlington, where work has already begun, Hetton-le-Hole, where work is about to start, two sites in Westerhope, Newcastle, and others in Blyth and Arcot in Cramlington.

John Eynon, managing director of Persimmon Homes North East, said the hard work of his team has helped the business deliver growth and accelerated returns to shareholders.

Eynon said: “Customer demand has certainly increased in the region and I’m extremely proud of the team for rising to the challenge and helping to deliver today’s excellent results. The purchase of land is key to our future success and as a business we acquired 17,735 plots of new land across 130 high quality locations during 2013. We continue to work closely with local authorities to gain planning within the region to ensure we continue to meet the high demand from potential buyers.

“Help to Buy has undoubtedly helped some people get onto the property ladder or simply move up quicker than they anticipated and it’s our job to deliver houses to anyone who is looking for a brand new home.”

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