Half year results for the six months ended 30 June 2011
- Underlying pre-tax profit* of £59.7m up 52% (2010: £39.4m)
- Earnings per share* of 15.5 pence, up 29% (2010: 12.0 pence per share)
- Interim dividend of 4.0 pence per share, up 33% (2010: 3.0 pence per share) reflecting the improved underlying profitability of the business
- Underlying operating margin* of 9.0% (2010: 8.0%) – continued improvement in underlying performance
- Cash generation robust: £72.5m cash generated from operations (2010: £185.6m) – net borrowings** reduced to £15.2m (30 June 2010: £122.1m)
- Revenues of £712.8m (2010: £776.6m)
- Legal completions of 4,439 (2010: 4,657)
- Average selling price*** 3.7% lower at £162,647 (2010: £168,936) due to mix change
- Significant reduction in net finance costs to £4.5m (H1 2010: £22.7m)
- 6.4% increase in net assets per share to 601.1p (30 June 2010: 565.1p)
- Further optimisation of the Group’s debt portfolio through strong liquidity: early repayment of remaining Senior Loan Notes and new 5 year £300m revolving credit facility
- 10% increase in forward sales at 22 August 2011 of c. £1,005m (23 August 2010: £912m) with improving margins. Weekly sales rates from 30 June 2011 running 4% ahead of the prior year
- Further strengthening of total land holdings – owned and under control landbank of 62,364 plots – 7,493 plots added since December 2010 with c. 37% successfully converted from our strategic land portfolio
- FirstBuy incentive successfully launched. Persimmon secured c. 20% of available funding to support over 2,000 first time buyers to enter the market
* Stated before goodwill impairment and exceptional items
** Stated before finance lease obligations and financing transaction costs
*** Calculated from nominal value of turnover – before fair value charge on shared equity sales
Nicholas Wrigley, Group Chairman said: “We remain committed to our strategic objectives of margin improvement and cash generation. As a consequence our teams across the country remain focussed on the basics of house building in their local markets which I am confident will deliver future success for the Group.”