Tuesday 15 January 2019 8:11 am | Updated: Monday 03 June 2019 2:12 am

Persimmon’s profits to beat expectations despite boss bonus scandal

Housebuilder Persimmon today said it expects its full-year profits to be “modestly” ahead of market consensus thanks to a string of new developments.

The company reported a four per cent rise in total revenues to £3.74bn for the year to the end of December, with legal completion volumes up three per cent to 16,449 new homes.

Persimmon’s average selling price also ticked up one per cent to £215,560.

“The UK housing market has continued to benefit from robust employment levels, low interest rates and a competitive mortgage market, which have supported confidence and customer demand across the regions,” the firm said.

The housebuilder said the value of its forward sales at the end of 2018 was £1.4bn, roughly three per cent ahead of the previous year.

The update is the FTSE 100 company’s first since the resignation of chief executive Jeff Fairburn in the wake of a dispute over his pay packet.

Fairburn, the UK’s highest paid boss in 2017, stepped down at the end of the year after coming under scrutiny for his £75m bonus.

Persimmon said it had asked the chief executive to resign, saying the controversy was a “distraction” and had a negative impact on the business. David Jenkinson, formerly group managing director, has taken over as interim chief executive.

In today’s update Persimmon said it has been mindful of wider economic uncertainties relating to Brexit, but expects pre-tax profits for 2018 to be marginally ahead of current market consensus.

“Whilst the future performance of the UK economy is currently subject to increased levels of uncertainty, the group is well positioned with its strong outlet network together with the availability of a range of attractive house types at affordable prices across the regions of the UK,” the company said.

Persimmon said it will publish its full-year results on 26 February.