As it recovered profit and revenue from a lacklustre 2020, Persimmon PLC (LSE:PSN) reported a strong rebound in 2021. The company noted, however, the conflict in Ukraine could cause disruptions in the UK economy.
As of December 31, 2021, the York, England-based housebuilder generated total revenue of £3.61bn, up from £3.33bn in 2020.
From £783.8mln to £966.8mln, profits before tax increased 23%.
The second-largest UK builder attributed this to a 40 basis point increase in operating margin, up to 28.6% in 2021 from 27.6% in 2020, driven by disciplined cost control and favorable pricing conditions.
The company plans to pay an interim dividend of 125p per share of surplus capital in April, and one of 110p in July. In total, this would amount to 235p, the same as in 2020.
Taking advantage of strong housing demand, the company said it would build 4-7% more homes in 2022. In the last year, the company built 14,551 homes, up from 13,575 in 2020. The average selling price for new homes increased to £237,078 from £230,534 in 2020.
Dean Finch, group chief executive, said, "The new year's trading has started well, with private sales rates ahead by about 2% in the opening weeks and a robust forward sales position of £2.21bn. We expect to grow our outlet position in 2022 and are targeting volume growth of 4-7% on 2021 levels, whilst maintaining our industry-leading margins, although we are mindful of the growing risk of an economic impact as a result of the tragic conflict in Ukraine."
During the year, the ceo noted that build rates remained at pre-Covid levels and customer service improved.
"An agile approach across the business ensured we navigated the supply chain challenges posed by the pandemic, with our Brickworks, Tileworks and Space4 manufacturing facilities providing security of supply for essential materials and helping us maintain our operating efficiency," he added.
The company is to expand production capacity at its Brickworks and Tileworks facilities this year and invest in a new Space4 timber frame facility.