Persimmon PLC Trading Update (1167K)
July 05 2017 - 2:00AM
UK Regulatory
TIDMPSN
RNS Number : 1167K
Persimmon PLC
05 July 2017
TRADING UPDATE
WEDNESDAY 5 JULY 2017
Persimmon plc ("the Group") announces the following update ahead
of its Half Year Results to 30 June 2017, which will be released on
Tuesday 22 August 2017. This statement covers the period from 1
January 2017 to 30 June 2017.
The Group's trading performance in the first half of the year
has been excellent. We have increased legal completion volumes by
8% to 7,794 new homes (2016: 7,238). The 556 increase in new homes
sold demonstrates the Group's drive to meet market demand in all
its regional markets across the UK. Our average selling price
improved by 3.5% to c. GBP213,000 (2016: GBP205,762). Revenue grew
by 12% to reach GBP1.66bn (2016: GBP1.49bn).
We have continued to experience good levels of customer demand
since the Group's AGM trading update on 27 April 2017, with the
market taking the snap UK General Election in its stride. Consumer
confidence remains resilient and compelling mortgage rates continue
to offer good support to new home buyers. Group sales through May
and June were healthy, leaving our weekly private sales rate per
site for the first half c. 7% ahead of last year at 0.80 (2016:
0.75).
We expect the Group's strong trading through the first half of
the year, including the contribution from 95 new sales outlets
opened in the period, will lead to further good progress in our
operating margin. We anticipate that the Group's operating margin
in the first half of 2017 will comfortably exceed the 25.7%
delivered in the second half of the prior year.
The Group has strong momentum moving into the second half of the
year, with total forward sales value at 30 June 2017 of GBP1.60bn,
18% higher than last year (2016: GBP1.36bn) and a network of 375
active outlets. In addition, sales through the second half of 2017
will be supported by opening a further c. 100 new sales outlets
despite the frustration of continued delays to site starts due to
planning inefficiencies. We are developing all our sites for which
we have secured detailed residential planning consent.
The Group has remained active in the land market with 47 new
land deals for c. 9,300 new homes that will provide high quality
returns in future periods. We have pulled through c. 3,000 plots
from our strategic land portfolio within this total, representing
38% of our first half land consumption. Our land spend totalled c.
GBP370m (2016: GBP305m).
A key feature of the Group's strategy is our commitment to
return surplus capital to shareholders over the long term. On 27
February 2017 the Board announced an additional payment under the
Group's Capital Return Plan ("the Plan") of 25p per share (or
GBP77m) which was paid to shareholders on 31 March 2017. This
raised the total value of the Plan to c. GBP2.85billion, or GBP9.25
per share, to be returned to shareholders by the end of 2021. This
represents an increase of 49% over the original value of the Plan
at launch in 2012. The scheduled instalment of 110p per share (or
GBP339m) under the Plan was paid on 3 July 2017.
At 30 June the Group held GBP1,120m of cash (2016: GBP462m)
prior to payment of the scheduled Capital Return of GBP339m on 3
July 2017.
Successful execution of the long term strategy launched in 2012
has placed the Group in a very strong financial position, with an
excellent asset platform designed to position Persimmon for success
through the housing cycle. We remain fully committed to building
the new homes needed by communities right across the UK. Our focus
on building traditional family housing in attractive locations will
help meet unfulfilled demand from first time buyers and home
movers. We are confident in the Group's future prospects.
We will announce our Half Year Results on Tuesday 22 August
2017.
Please Note
There will be a call for analysts at 0900 BST today. Please use
the dial-in details below:
Telephone number: +44 (0)333 300 0804
PIN: 89206677#
Password: Persimmon
An audiocast of the call will be available on
www.corporate.persimmonhomes.com from this afternoon.
For further information please contact:
Persimmon plc Citigate Dewe Rogerson
Jeff Fairburn, Group Chief Simon Rigby
Executive
Mike Killoran, Group Finance Kevin Smith
Director
Persimmon plc
Tel: +44 (0) 20 7638 9571 Citigate Dewe Rogerson
on the day
Tel: +44 (0) 1904 642 199 Tel: +44 (0) 20 7638
thereafter 9571
This information is provided by RNS
The company news service from the London Stock Exchange
END
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