Persimmon Plc is one of the UK’s leading housebuilders. Our financial discipline means we have:
A very strong balance sheet
Improving margins and profitability
Excellent cash generation
We are a team of over 4,500 people focused on the successful growth of our business and our results demonstrate our ability to react swiftly to changes in housing demand whilst improving the quality of shareholder returns. We sold 7,238 homes in the first half of 2016, up 6% on the prior year. Our underlying operating margin (before goodwill impairment) was 23.8% for the first half of 2016, an increase from 20.5% on the prior year and our profit before tax was £352.3m for the half year to 30 June 2016, up 29% on the prior year.
We concentrate on family housing with c.90% of our sales being traditional house types, with 49% of our private home sales are at prices below £200,000 creating a large potential customer base.
We maintain a strong focus on capital efficiency and return on average capital employed, which is supported by strong capital disciplines, controlled investment in our c.375 active sites and a superior turnover of work in progress.
One of our main strengths and a key element to our strategy is the conversion of our strategic landholdings to land with planning permission and the value this asset can create for shareholders. We have c.17,500 acres of strategic landholdings at 30 June 2016 and our success at converting this asset to land with planning permission means that c.45% of our consented landbank has been converted from our strategic land portfolio.