Persimmon chief executive Mike Farley is retiring after almost 30 years with the UK’s largest housebuilder, which yesterday said it had enjoyed a 12 per cent rise in revenues last year.
Farley, who has headed the group since 2006, will be replaced in April by Jeff Fairburn, who is currently group managing director and chief executive of its northern operations.
News of the management change came as Persimmon said it was on track to deliver revenues of about £1.7 billion for the year to 31 December, up from £1.5bn the previous year, helped by a 6 per cent rise in sale completions to 9,903 homes and a 6 per cent increase in the average selling price to £173,400.
Operating margins continued to strengthen during the second half and should be about 13 per cent for the full year, up from 10 per cent in 2011, and the builder said the improved profitability had boosted its cash balances from £41m to about £200m during the year. The group plans to return £1.9 billion of cash to shareholders by 2021 through dividend payments.
Farley, who joined Persimmon in 1983 and was responsible for developing the group’s business in the Midlands before becoming chief executive, said the business was in “great shape”, adding: “I’m confident that it will become an even stronger and bigger business over the coming years.”
Persimmon is due to publish its full-year results on 25 February. Numis analyst Chris Millington said the rise in revenues was better than expected and the broker had lifted its pre-tax profit forecast to £224 million, up from £216m previously.