HOUSEBUILDER Persimmon has enjoyed another record year, with pre-tax profits rising 28 per cent, despite selling fewer houses.

The York housebuilder, which has operations across the North-East including Newcastle, reported pre-tax profits up to £104m, compared with £81.6m in 1999.

The increased profit was achieved from 7,035 completed house sales, marginally fewer than the 7,101 in the previous year.

However, profit per unit increased by 29 per cent to £14,785, compared to the previous total of £11,486. The average selling price increased from £96,055 in 1999 to £105,307.

Since January, Persimmon has been working hard to achieve the acquisition of rival housebuilder Beazer.

Persimmon has had its offer of 195p per share accepted by Beazer shareholders and is awaiting approval from the Office of Fair Trading to complete the deal.

The combined group will have the largest land bank in the country, although Persimmon has warned that about 400 administrative jobs will go as it reduces the number of regional offices from 36 to 24.

John White, group chief executive of Persimmon, said: "The acquisition is a tremendous opportunity for the group and we are looking forward to a successful integration of Beazer into Persimmon."

Commenting on the results, Mr White said: "This has been an excellent year for Persimmon. I am particularly pleased that our continued commitment to maximising profit per plot and operating margins has been so effective and ensured another good result for shareholders."

Looking to this year, Mr White said: "New sales of Persimmon homes have gone very well since the new year, and the board is confident of another good result in 2001.

"Prior to the Beazer acquisition, the value of Persimmon's current year sales to February 26 is more than 20 per cent higher than at the same point in 2000.

"The board expects market conditions to remain positive for the remainder of the year with trading characterised by modest price inflation and continued strong demand for homes," he said.

Shareholders will receive a dividend of 12.4p per share, a rise of 12 per cent on the 11.1p per share received in 1999.