Persimmon has performed well during the last eighteen months making further strong progress during the first half of 2011. In line with our strategic objectives we have delivered further significant margin improvement and excellent cash generation. Combined with our healthy forward order book this places the Group in a strong position for the second half of our financial year.
Persimmon legally completed 4,439 new home sales during the six month period to 30 June 2011 and revenues of £712.8m were achieved. Underlying pre-tax profits for the period increased by 52% to £59.7* million. Underlying operating profit* of £64.2 million generated an operating margin of 9.0%. Our strong cash generation from operations of £72.5 million through the six month period reduced our borrowings** to £15.2 million at 30 June 2011. During the first six months of 2011 we added 7,493 plots to our consented landbank which, at 30 June 2011, stood at 62,364 plots owned and under control. 37% of the new plots added to our consented landbank were successfully pulled through from our strategic holdings.
On 23 August 2011 the Board announced that in the light of this performance it was recommending a substantial increase in the Interim Dividend to 4.0 pence per share. The Interim Dividend will be payable on 13 December 2011 to shareholders on the Register on 4 November 2011.
In the year to 31 December 2010 we sold 9,384 homes, generating revenue of £1.57 billion. During 2010 we increased legal completions, revenue margins and profits. Pre-tax profit for the year was £95.5m (before exceptional items and goodwill charges). We also reduced debt by over £215 million and reinstated dividends whilst continuing to invest in our landbank.
The Group’s half year results for the six month period to 30 June 2011 were announced on 23 August 2011 and our final results for the current year will be announced on 28 February 2012.
* Stated before goodwill impairment and exceptional items
** Stated before finance lease obligations and financing transaction costs