Persimmon profits at 'top end'

10th Jan 2011 07:25

Underlying profits at housebuilder Persimmon will be at the top end of expectations, a good send off for chairman John White who's retiring after 32 years at the company.A "significant" increase in profit before tax, goodwill charges and exceptional items has propelled the figure towards the upper end of analysts' forecast which range from £75m to £96m.Legal completions last year rose 4.5% to 9,384 from 8,976 in 2009 at an average selling price of around £167,000, up 6%, while turnover grew 10% to £1.57bn, all in line with November's trading update.In that statement, the company said it had not experienced the usual level of upturn in sales during the autumn period. Snow has further reduced the level of sales activity.But Persimmon is buying up new land - 5,000 plots in the second half - and now has 59,000, or more than six years supply. About 70 developments are expected to open over the next six months and the group hopes potential buyers put off by the winter weather will return in the coming weeks.Chairman White, chief executive for 13 years from 1993, today announced his intention to leave the business he joined in 1979 at the AGM on 21 April."It's been a great privilege to serve Persimmon for 32 years but I feel this is the appropriate time for me to move on," said White. Nicholas Wrigley, a non-executive director since 2006, takes over.Results for the year ended 31 December 2010 are due on 1 March.