Whilst revenue fell slightly in the year to £1.54 billion, Persimmon's underlying pre-tax profits increased 55% to £148.1m (2010: £95.5m) with the operating margin increasing to 10%.
The number of new homes built during the year to 31 December 2011 remained at 9,360 just 24 less than in 2010.
Average selling prices reduced to £166,142 reflecting an increase in first-time buyer homes sold in the year.
Persimmon added an extra 14,300 plots to it's land bank and now has over six year's supply a total of 63,300 plots either owned or in control of the group.
Persimmon's Group Chairman Nicholas Wrigley said:
"Underlying profit before tax grew by 55% during the year, as Persimmon's successful strategy of improving operating margins, investing in high quality land and generating surplus cash to pay down debt proved highly effective, despite difficult prevailing housing market conditions.
Looking ahead, we have made a strong start to the year, with forward sales up by 9.4% to £927 million. Visitor levels and reservations continue on an improving trend and, although we expect the UK housing market to remain difficult, Persimmon is in a strong position to meet this challenge.
In addition to the strong financial results we are reporting today I am pleased to announce the conclusion of a strategic review, which will see Persimmon return £1.9 billion of cash to shareholders over the next 9.5 years, whilst maintaining a largely ungeared balance sheet. This new strategy sets Persimmon on course to build a stronger, larger business and deliver enhanced shareholder returns over the next decade."
