HOUSEBUILDER Persimmon has delivered an 80 per cent increase in underlying profits after completing the £559m acquisition of rival Beazer.
The York firm hailed the deal as one of the most important events in its 30-year history and said the benefits of the move had exceeded expectations.
Persimmon improved its margins during the year to December 31, with pre-tax profits before exceptional items up to £188.2m from £104.3m a year earlier.
Chief executive John White said the new year had started strongly: "We currently have new outlets opening across the whole of the UK, ensuring that we take advantage of the traditionally strong spring market."
Persimmon picked up the upmarket Beazer brand Charles Church as part of the acquisition completed last March.
Mr White said the company had taken action to improve the performance of the operation, which lacked "construction discipline and management direction".
He added: "Management has been fundamentally restructured and refocused and we are confident that we will see an improvement in this business over the relative short term."
Persimmon said another major development since the Beazer deal had been the reduction of group borrowings from a May peak of £820m to £496m by the end of last year.
However, the company said it remained active in the land market and held more than 52,000 plots - equivalent to supply worth four years.
The sale of 12,051 homes last year generated revenues of £1.48bn, compared with £740.8m a year earlier.
The average selling price was £122,601, up from £105,307, as pre-tax profit per unit rose to £15,614 from £14,828 last time.
The company said the improvement in margins had been driven by its original Persimmon business and the Beazer operation, although it remained confident of a better contribution from Charles Church.
Growth in Persimmon's northern division was healthy, with average selling prices ahead 11 per cent at £95,819. That compares with a nine per cent rise in the southern division at £132,490.
Bottom-line pre-tax profits, which include reorganisation costs of £12.8m, reached £166.7m, compared with £104m the year before.
Shareholders will receive a total dividend of 13.7p a share, up 10.5 per cent on a year earlier.
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