Persimmon Plans To Speed Up Dividend Payments

Persimmon revealed that it is ahead of schedule to return billions of pounds worth of dividends to shareholders and that due to the strong financial start of the year it will pay an early 10 pence a share dividend in 2014.

According to the UK's largest homebuilder's interim management statement, Persimmon says it is "well on track to deliver £1.9bn (€2.2bn / $2.9bn) of capital to shareholders over a nine-and-a-half year period ending in 2021, whilst continuing to build a stronger and larger business."

Persimmon adds that since it is ahead of its initial financial projections, it would "accelerate" £30m worth of dividends, initially earmarked for 2015, and pay shareholders 10 pence per ordinary share, subject to the company's board approval.

The first payment of about £228m, or 75 pence a share, will be paid to investors on 28 June this year.

According to Persimmon's 2012 Annual Results, the group's underlying profit before tax soared by 52 percent to £225.1m, as it sold more homes at higher prices.

The statement also revealed that profits increased after installing a strategic land development plan and focusing on houses rather than apartments in urban areas to increase margins.

In Thursday's statement, Persimmon also provided a positive outlook for the group as it feels "encouraged by the announcements made in the Budget with respect to the Government's support both for customers wishing to enter the housing market and for those existing homeowners who aspire to move home."

The Persimmon share price rose slightly in early trading, reaching 1,115.00p as of 0900 BST. It is up over 75 percent from one year ago.