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Persimmon CEO to step down as FY profits slip
27th Feb 2020 08:59
(Sharecast News) - Housebuilder Persimmon posted lower full-year profits on Thursday and announced that chief executive David Jenkinson was stepping down after 15 months in the role.
Persimmon said full-year revenues fell 2.4% to ?3.65b, dragging down pre-tax profits 5% to ?1.04bn as a result. Earnings per share dropped to 266.8 from 283.3p.
15,855 new homes were sold by the group in 2019, 4% down on last year, while the average selling price of those new homes remained broadly flat at ?215,709.
Persimmon said it was "mindful of the increased uncertainties regarding the outlook for the UK economy" and added that it felt it "appropriate" to hold a cash balance of roughly ?700m moving forward. However, with a cash balance of ?844m at the end of 2019, Persimmon vowed to maintain total capital returns of ?2.35 per share into 2020 and 2021.
The FTSE-100 firm highlighted that it had a current forward sales book of ?1.98bn so far in 2020, with a year-to-date average private sales rate approximately 7% higher year-on-year at 0.88.
No official date was provided for Jenkinson's departure, but the company said he would remain in the position while the group took time to recruit a successor.
As of 0855 GMT, Persimmon shares were down 3.80% at 2,961p.
Persimmon said full-year revenues fell 2.4% to ?3.65b, dragging down pre-tax profits 5% to ?1.04bn as a result. Earnings per share dropped to 266.8 from 283.3p.
15,855 new homes were sold by the group in 2019, 4% down on last year, while the average selling price of those new homes remained broadly flat at ?215,709.
Persimmon said it was "mindful of the increased uncertainties regarding the outlook for the UK economy" and added that it felt it "appropriate" to hold a cash balance of roughly ?700m moving forward. However, with a cash balance of ?844m at the end of 2019, Persimmon vowed to maintain total capital returns of ?2.35 per share into 2020 and 2021.
The FTSE-100 firm highlighted that it had a current forward sales book of ?1.98bn so far in 2020, with a year-to-date average private sales rate approximately 7% higher year-on-year at 0.88.
No official date was provided for Jenkinson's departure, but the company said he would remain in the position while the group took time to recruit a successor.
As of 0855 GMT, Persimmon shares were down 3.80% at 2,961p.