House Builder Persimmon Boosts Half-Year Profit on Strong U.K. Housing Market

HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 > 18 AUGUST 2015

Persimmon  announces half year results for the six months ended 30 June 2015.

Highlights

·  Profit before tax increased 31% to £272.8m (2014: £208.9m)

·    Revenue up 11% to £1.33bn (2014: £1.20bn)

·  Legal completions increased 7% to 6,855 new homes sold (2014: 6,408), average selling price increased 4% to £194,378 (2014: £186,970)

·  Further expansion of underlying operating margin* to 20.5% (2014: 17.7%), an increase of 280bps

·  Return on average capital employed** increased by 27% to 27.5% (2014: 21.7%)

·  Strong land investment with 11,539 plots of land secured in the period bringing consented land bank to 92,404 plots

·   Continued success in securing planning consent for the Group's strategic land bank with 2,974 plots converted in the period

·  Net free cash generation*** of £191m in the period (2014: £122m)

·   Net cash of £278m at 30 June 2015 (2014: £326m)

·  Underlying basic earnings per share* increased 43% to 78.6p (2014: 54.8p)

·  Current forward sales 12% ahead at over £1.71bn (2014: £1.53bn)

·      Third payment of surplus capital under the Capital Return Plan of £291m (95p per share) paid 2 April 2015

* stated before goodwill impairment

** 12 month rolling average stated before goodwill 

impairment

*** net free cash generation stated before Capital Return 

Plan payments

Jeff Fairburn, Group Chief Executive, said: "Persimmon has traded well in the first half of 2015. The Group continues to take advantage of the current market opportunities to deliver sustainable growth whilst also utilising its excellent cash generation to build a strong asset platform for the future. We have now entered the traditionally slower summer weeks for the market. Our private sale reservation rate since 1 July is currently 5% ahead of the same period last year which is a reflection of the continuation of healthy customer demand.

The performance in the first half of 2015 further demonstrates the results of the Group's focus on successfully executing its operational objectives and the delivery of the ten year strategic plan launched in 2012. We are confident that our long term strategic focus through the current cycle will continue to deliver strong returns for our shareholders."

                                                          

                                                                     Trading Podcast update  June 2015