Persimmon’s Full-Year Profit Rises on U.K. Economy Improvement

Persimmon Plc, the U.K.’s largest homebuilder by market value, said full-year profit rose 45 percent as a recovering U.K. economy helped lift sales.

Net income increased to 372 million pounds ($575 million) from 257.2 million pounds a year earlier, the York, England-based company said in a statement Tuesday. The number of homes sold rose 17 percent to 13,509.

“Despite some uncertainty arising from the general election in May, the ongoing gradual improvement in the U.K. economy and increasing mortgage lender support provides a supportive backdrop for the new homes market,” Chairman Nicholas Wrigley said in the statement.

U.K. home prices rose 10 percent last year as a shortage of properties and cheap mortgages drove values higher. The number of new apartments and houses under construction in England increased by 10 percent to about 137,000 last year, according to government data. That’s still about 100,000 fewer than the amount needed to meet rising demand, according to a 2013 estimate by the Town and Country Planning Association.

Persimmon’s revenue increased by 23 percent from a year earlier to 2.6 billion pounds, while its underlying operating profit margin widened to 18.4 percent from 16 percent. Earnings per share increased to 124.3 pence from 82.8 pence.

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