Half Year Results for the six months ended 30 June 2016

  • Profit before tax increased 29% to £352.3m (2015: £272.8m)
  • Revenue up 12% to £1.49bn (2015: £1.33bn)
  • Legal completions increased 6% to 7,238 new homes sold (2015: 6,855) - an additional 383 new homes delivered
  • Average selling price of £205,762 up 6% (2015: £194,378)
  • Further expansion of underlying operating margin* to 23.8% (2015: 20.5%), an increase of 330bps
  • Return on average capital employed** increased by 29% to 35.6% (2015: 27.5%)
  • 7,108 plots of new land secured in the period bringing consented land bank to 93,519 plots
  • Continued success in securing planning consent for the Group’s strategic land bank with 2,856 plots converted in the period, 40% of the new plots acquired in the period
  • Net free cash generation*** of £229.9m in the period (2015: £190.7m)
  • Net cash of £462.0m at 30 June 2016 (2015: £278.0m)
  • Basic earnings per share increased 19% to 92.0p (2015: 77.3p)
  • Current forward sales 2% ahead at £1.75bn (2015: £1.71bn)
  • Fourth payment of surplus capital under the Capital Return Plan of £338.3m (110p per share) paid 1 April 2016

* 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’s robust trading performance in the first half of 2016 was driven by our continued focus on meeting market demand to deliver controlled sustainable growth. The Group’s strong cash generation has supported further disciplined land investment embedding value for the future.”

“While the result of the EU Referendum has created increased economic uncertainty, customer interest since then has been robust with visitor numbers to our sites around 20% ahead year on year. Our private sale reservation rate since 1 July is currently 17% ahead of the same period last year. The Group is now trading through the traditionally slower summer weeks but customer demand remains encouraging and we anticipate a good autumn sales season.”

“We are confident that our long term strategic focus will continue to deliver strong returns for our shareholders.”