persimmon

https://www.persimmonhomes.com/corporate/investors/regulatory-news-(rns)

Value:38+

On 27 February 2018 Persimmon plc (the “Company”) was informed that on that day Persimmon (Share Scheme Trustees) Limited purchased 6,000 ordinary shares in the Company at an average price of 2763.1301p.

Persimmon (Share Scheme Trustees) Limited holds 52,926 shares in the Company for the Bonus Share Scheme representing 0.02% of the issued share capital.  

The issued share capital of the Company on 27 February 2018 was 310,484,244 ordinary shares. 

on 15 December 2017, Nicholas Wrigley’s resignation is effective from 26 February 2018. [chairman]

27 February 2018 announces Final Results for the year ended 31 December 2017.

Legal completions increased by 872 new homes to 16,043 (2016: 15,171) and average selling price increased by 3.2% to £213,321 (2016: £206,765)

Revenue for the year up 9% to £3.42bn (2016: £3.14bn)

Operating margin* increased to 28.2% (2016: 24.8%); with second half improvement to 28.8%

26% increase in underlying basic earnings per share* to 258.6p (2016: 205.6p)

17,301 plots of land acquired in the year, with 8,296 plots successfully converted from the Group’s strategic land portfolio

Net cash of £1,303m at 31 December 2017 (2016: £913m)

10% increase in post tax return on equity to 26.5% (2016: 24.1%)

7.5% increase in forward sales at £2.03bn (2017: £1.89bn)

Interim and Final dividends declared of 125p and 110p per share respectively

Since the launch of the Group’s new strategy in 2012 the Group has increased new home completion volumes by more than 70% and invested c. £3.18bn of cash in land while simultaneously returning c. £1.49bn of surplus capital to shareholders.”

The Government’s cut in stamp duty for first time buyers in the budget on 22 November 2017 should provide support to the market in 2018.

our rating scores in the HBF National New Homes Customer Satisfaction Survey.  Our score in relation to the question ‘Would you recommend Persimmon to a friend?’ has increased to 79.1% for 2017 (2016: 74.6%).  This is just below the 80% required for the HBF to rate us a four star builder.

1/6/2017 shares : 308,624,506

 1/3/2017 28 February 2017 consisted of 308,580,361 ordinary shares of 10p each.

27/2/2017 – Final result for the year ended 31 December 2016

  • Focus on disciplined high quality growth delivers excellent full year performance
  • Underlying profit before tax* increased by 23% to £782.8m (2015: £637.8m)
  • Full year revenue up 8% to £3.14bn (2015: £2.90bn)
  • Legal completions increased by 599 new homes to 15,171 (2015: 14,572) and average selling price increased by 3.8% to £206,765 (2015: £199,127)
  • Operating margin* increased to 24.8% (2015: 21.9%); with second half improvement to 25.7%
  • 41% increase in cash generation pre capital returns to £681m (2015: £483m)
  • Return on average capital employed** increased by 23% to 39.4% (2015: 32.1%)
  • A further 18,709 plots of land acquired in the year, with 11,268 plots successfully converted from the Group’s strategic land portfolio
  • Underlying basic earnings per share* increased by 19% to 205.6p (2015: 173.0p)
  • Net cash of £913.0m at 31 December 2016 (2015: £570.4m)
  • Forward sales ahead at £1.89bn (2016: £1.74bn), an increase of 9%
  • Persimmon opened 255 new sales outlets during 2016 (2015: 252).
  • The Board therefore made a long term commitment in early 2012 to deliver £1.9bn (£6.20 per share) of surplus capital to shareholders over ten years to 2021 (“the Capital Return Plan”).
  • The total value of the Capital Return Plan therefore increased to c. £2.76bn, or £9.00 per share, an increase of 45% over the original Plan value. The future Capital Return Plan payment of £5.50 per share was set to be paid in equal instalments of £1.10 per share over the remaining five years of the Plan period, commencing in early July 2017.
  • 25 pence per share to be paid on 31 March 2017.
  • the scheduled payment of 110 pence per share will be made on 3 July 2017
  • As a result the Capital Return Plan to 2021 has now been increased by 49% to £9.25 per share.
  • We are pleased with customer activity in the first eight weeks of the 2017 spring season. Visitors to our sites are c. 7% ahead year on year.
  • Over the five years since the launch of the Group’s new strategy we have opened almost 1,000 new sales outlets. The Group currently has a strong network of c. 390 sites across all regions of the UK (2015: c. 375).
  • The Group owned c. 52,800 plots of land which have an implementable detailed planning consent at 31 December 2016 (2015: c. 54,300 plots)
  • Over the last five years we have acquired over 98,500 plots of land to support the growth of the Group whilst spending c. £2.6bn.
  • The Group’s aim of growing the business to meet market demand delivered a 20% increase in post tax profit in the year whilst our focus on capital discipline
  • -Brickworks : Subsequent to the planned commissioning in Q1 2017 the plant will have the capacity to manufacture c. 80 million bricks each year. This output will satisfy approximately two thirds of the Group’s current requirements and deliver a pay-back period of approximately three years on the initial investment of c. £10m.
  • By exercising capital discipline, together with maximising the cash efficiency of operational activities, management will deliver strong cash generation whilst minimising financial risk through the cycle. In 2016 we generated £681m of free cash before capital returns, or 221 pence per share (2015: £483m, 158 pence per share) and held £913m of cash balances at 31 December 2016 (2015: £570m).
  • high quality land bank – margin resilience and asset value protection
    – 67,300 plots owned at a cost to revenue ratio of 15.7%
    – 4.4 years owned forward supply at 15,200 units