Persimmon Profits £95.5m as Margins Improve to 8.2%

Housebuilder Persimmon today reported underlying pre-tax profits of £95.5m for the year to end-December 2010, strongly ahead of prior year (2009: £7m).

Revenues were 10.5% higher at £1.57bn (2009: £1.42bn).

Legal completions increased 4.5% to 9,384 new homes (2009: 8,976), while the average selling price of £167,249 was 5.7% ahead of last year (2009: £158,272).

The underlying operating margin was 8.2% (2009: 4%) and Persimmon said its performance continues to strengthen.

Reported pre-tax profit was £153.9m following a net exceptional credit of £63m (2009: £77.8m, after £74.8m net exceptional credit).

Basic earnings per share were 38.3p (2009: 24.7p).

£225.6m cash was generated from operations (2009: £356.8m).

Gearing was 3% (2009: 16%) and net borrowings reduced to £51m (2009: £267.5m).

Net assets per share increased by 7.2% to 579.1p (2009: 540.2p).

Persimmon said it saw strong forward sales of £848m (2009: £898m).

A final dividend of 4.5p per share to bring the total dividend for the year to 7.5p per share.

John White, Group Chairman, said: “Despite a continuing low level of mortgage approvals, the Group is achieving improving returns and remains well positioned for the upturn in the housing market when it occurs.”

 

A full copy of the statement from Persimmon can be obtained from their website http://corporate.persimmonhomes.com/ or the following link Statement Report

Onyx Construction Consultants are pleased to count Persimmon as one of its valued clients working with its Northampton and Witham offices and more than pleased that its doing very well in the current market conditions.

If you are a house builder and need assistance with your commercial needs or a subcontractor looking for an introduction to major house builders then contact Andrew Fella at Onyx Construction Consultants Ltd

 

Persimmon Adds 5000 More Plots in Late 2010 and Opening 70 New Sites 1st Half 2011

In a Trading Statement issued today 10th January 2011 by Persimmon Homes it advised that it had acquired over 5,000 plots worth of land in the later half of last year and is looking to open 70 new sites in the 1st half of this year.

The Statement read as follows…

In keeping with our current strategy we have continued to acquire new land through the remainder of the second half of the year on a selective basis and have acquired over 5,000 plots in the second half.  We have c. 59,000 plots owned and under control in our landbank at 31 December 2010, which represents c. 6.3 years supply…

 

We expect to open c. 70 new developments over the course of the next six months which will ensure our operating developments are maintained at current levels of c. 380 outlets.  It is too early in the New Year to assess the likely outcome of the forthcoming Spring sales season.  However, we believe that prospective purchasers who may have postponed visits to our developments due to the harsh weather conditions prior to the year end will return during the coming weeks…

 

We will give an update on our assessment of the housing market over the first weeks of 2011 when we announce our Results for the year ended 31 December 2010 on Tuesday 1 March 2011.

 

A full copy of the statement from Persimmon can be obtained from their website http://corporate.persimmonhomes.com/ or the following link Statement Report

Onyx Construction Consultants are pleased to count Persimmon as one of its valued clients working with its Northampton and Witham offices and more than pleased that its doing well in the current market conditions.

If you are a house builder and need temporary assistance with your commercial needs or a subcontractor looking for an introduction to major house builders then contact Andrew Fella at Onyx Construction Consultants Ltd

Persimmon Extends its Pretax Profit & Slashes Debt

Housebuilder Persimmon said it has achieved a significant increase in underlying profit before tax in the year to end-December 2010, which will be at the top end of analysts’ expectations.

During 2010 Persimmon legally completed 9,384 (2009: 8,976) homes at an average selling price of c. £167,000 generating a turnover of c. £1.57 billion. This represents an increase on the 2009 performance of 4.5% on legal completions, a c. 6% improvement in average selling price of our homes, partly due to mix changes, and a c. 10% increase in turnover.

The company also achieved a further significant reduction in net borrowings to c. £51m (2009: £267.5m) during this period. This reduction in net borrowings is well ahead of original expectations and is a result of our continued strategy to generate cash whilst maximising margins.

As previously indicated underlying operating margin for the year will be c. 8%.

Persimmon said it had not experienced the usual level of upturn in sales in the autumn period with most parts of the country affected by severe weather conditions for several weeks. Whilst, unsurprisingly, this has reduced the level of sales activity during the period, pricing has remained stable and the margins on forward sales of c. £565m have been maintained at the levels achieved over recent months.

A full copy of the statement from Persimmon can be obtained from their website http://corporate.persimmonhomes.com/ or the following link Statement Report

Onyx Construction Consultants are pleased to count Persimmon as one of its valued clients working with its Northampton and Witham offices and more than pleased that its doing well in the current market conditions.

If you are a house builder and need temporary assistance with your commercial needs or a subcontractor looking for an introduction to major house builders then contact Andrew Fella at Onyx Construction Consultants Ltd

UK’s 20 Biggest House Builders by Turnover

The Top 20 house builders league table ranks the UK’s 20 biggest house builders by turnover and profit.

2010 Rank by turnover

2010 Rank by profit

Company

Latest turnover (£m)

Previous turnover (£m)

Latest pre-tax profit (£m)

Previous pre-tax profit (£m)

Latest margin (%)

Previous margin (%)

2009 Rank by Turnover

2009 Rank by Profit

1

20

Taylor Wimpey

2,596

3,468

-700

-1,970

-27.0

-56.8

2

25

2

19

Barratt

2,285

3,555

-679

137

-29.7

3.9

1

2

3

2

Persimmon

1,421

1,755

77.8

-780

5.5

-44.4

3

24

4

12

Bellway

684

1,150

-36.6

34.8

-5.4

3.0

4

4

5

1

Berkeley

615

702

110

120

17.9

17.1

5

1

6

8

Bloor *

311

335

-1.5

-51.9

-0.5

-15.5

13

18

7

17

Miller

310

646

-157

52.9

-50.6

8.2

12

21

8

16

Redrow

302

650

-141

-194

-46.7

-29.8

7

22

9

6

Bovis Homes

282

282

4.8

-78.7

1.7

-27.9

15

20

10

10

Stewart Milne

276

420

-27

25.1

-9.8

6.0

11

6

11

13

Crest Nicholson **

238

544

-50.7

-383

-21.3

-70.4

8

23

12

14

Galliford Try

235

486

-53.8

10.6

-22.9

2.2

6

8

13

3

McCarthy & Stone ***

226

457

19

114

8.4

24.9

10

3

14

7

Fairview

224

223

0.4

-32.3

0.2

-14.5

17

17

15

9

Countryside

188

518

-25.7

26.5

-13.7

5.1

9

5

16

11

Cala

168

175

-33.9

-266

-20.2

-152.0

14

11

17

5

Telford

159

107

7.3

4.3

4.6

4.0

24

12

18

15

Kier

151

312

-62.4

-21.2

-41.3

-6.8

16

15

19

18

McInerney

127

256

-164

-175

-129.1

-68.4

22

14

20

4

Morris

112

163

11.9

17.3

10.6

10.6

18

9

 

 

Totals

10,910

16,204

(1,901)

(3,410)

 

 

 

 

All companies ranked according to their most recently filed accounts.

* Bloor Holdings only publishes an operating profit (before exceptional items) for its house-building business.

** Crest Nicholson results cover period 23 January to 31 October 2009. The company was incorporated on 23 January 2009.

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