Persimmon CEO to step down as FY profits slip

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.