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January 13 () – Britain’s No. 2 home developer Persimmon Plc on Thursday forecast a high operating margin for fiscal year 2021 due to strong demand for new homes, and also appointed Avona’s Jason Windsor as chief financial officer.
Preference for larger homes that can be operated remotely, cheap loans, and tax breaks that expired in September kept the UK housing market stable during the pandemic.
Hot house prices in the UK have helped home builders overcome the cost pressures caused by supply chain disruptions and labor shortages caused in part by Brexit and the coronavirus crisis.
Persimmon said it expects the core operating margin for 2021 to be about 28%, up 0.4 percentage points from a year earlier.
For the 12 months ended 31 December, revenue rose 8.4 per cent to £ 3.61 billion ($ 4.95 billion) as the company built 14,551 new homes, up from 13,575 a year earlier.
The company said forward sales, a futures contract between buyers and homebuilders, totaled £ 1.62bn as of 31 December, up 20% from the pre-pandemic level.
According to Persimmon, Windsor, who is chief financial officer at Aviva Plc insurance, is expected to join the British homebuilder in the summer.
Persimmon’s current chief financial officer, Mike Killoran, said last July that he would retire in mid-January 2022 after more than 25 years in the group.
$ 1 = £ 0.7289 Report by Abi Jose Coilparambil in Bengaluru; Edited by Sherry Jacob-Phillips