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Persimmon (PSN)

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OLTB
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Persimmon (PSN)

#203359

Postby OLTB » February 23rd, 2019, 7:32 am

Morning all

Several newspapers are reporting that Persimmon may lose the contract to sell Help-to-Buy homes from the Govt from 2021 owing to concerns about their leaseholds, build quality, hidden charges applied to new buyers. One of the stories is here https://www.independent.co.uk/news/busi ... 93181.html .

I'm not too sure if there's any 'teeth' to this story and that Persimmon will ensure that they make the necessary charges to many practices that satisfy James Brokenshire to renew the contract.

For me, this story illustrates a lack of knowledge on my part - I had no idea that house builders needed to have some form of authority to be able to build Help to Buy homes, I assumed they could just build the houses. Fortunately, they are an average-sized holding in my HYP portfolio, but the income they generate is currently higher than the others, so any changes to the profits they make will have an effect. You never know what's round the corner in this investing lark do you...

Cheers, OLTB.

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Persimmon (PSN)

#203676

Postby idpickering » February 25th, 2019, 12:21 pm

More discussion on this can by found on HYP Practical.

viewtopic.php?f=15&t=16437

(edited 25/2. Added some text to the link. Raptor.)

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Re: Persimmon (PSN)

#203701

Postby monabri » February 25th, 2019, 1:50 pm

Drat, that pesky " source" of information & disinformation.

http://www.cityam.com/273715/housing-mi ... erned-over

"Brokenshire is “increasingly concerned” over the behaviour of the UK’s second biggest housebuilder, raising issues over leasehold, build quality and accountability, a source told Reuters."

“Leasehold, build quality, their leadership seemingly not getting they’re accountable to their customers, are all points that have been raised by (the minister) privately,” the source said.

PSN report on 28th - a convenient snippet for a press release from "the source."

https://www.persimmonhomes.com/corporat ... l-calendar

Edit.
26th...not the 28th...I blame my source lol:
Last edited by monabri on February 25th, 2019, 2:02 pm, edited 1 time in total.

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Re: Persimmon (PSN)

#203704

Postby SuperCally » February 25th, 2019, 1:59 pm

<<When do PSN report next?>>

Tomoz - as my 11-yo grandson might say!

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Re: Persimmon (PSN)

#203851

Postby idpickering » February 26th, 2019, 7:33 am

Highlights of finals here; viewtopic.php?f=15&t=16452

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Re: Persimmon (PSN)

#206965

Postby monabri » March 11th, 2019, 12:02 pm

"Persimmon Sues BT Over Unpaid Bill for New Homes Infrastructure"


House builder Persimmon has launched a lawsuit against BT (Openreach), which accuses the UK telecoms giant of allegedly owing them £7.2m plus interest for unpaid work as part of deploying new broadband ISP and phone infrastructure on 759 of its developments between 2008 and 2016"


https://www.ispreview.co.uk/index.php/2 ... cture.html

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Re: Persimmon (PSN)

#209015

Postby daveh » March 21st, 2019, 8:26 am

Customer care improvement plan.
www.investegate.co.uk/article.aspx?id=2 ... 5115T&fe=1

Customers solicitor to be able to retain 1.5% of the house price until all snagging identified at key handover is completed. Seems a bit low to me at £3600 on average.

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Persimmon - More problems?

#209118

Postby Cornytiv34 » March 21st, 2019, 2:42 pm

Here in the South West BBC yesterday had a news report on the failure of Persimmon to fit obligatory fire protection materials in their timber framed buildings.

It was commented upon, here and elsewhere, that the problems were could go back many years and the rate of inspections being carried out was slow. It was thought that the problems might not be limited to the South West. Further suggestions questioned whether Persimmon were alone. Local councils said they did not have to inspect, NHBC have apparently also failed to do so as have Persimmon.

Bearing in mind that many HYPers may hold these shares and previous problems with excessive remuneration and advancing of bonus entitlements I thought that attention should be drawn to the latest problems.

https://www.bbc.co.uk/news/uk-england-cornwall-47613496

https://eastdevonwatch.org/2019/02/25/persimmon-cranbrook-is-confirmed-among-developments-being-inspected-for-missing-fire-safety-barrier-inspections

CornyTiv

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Re: Persimmon (PSN)

#215359

Postby idpickering » April 16th, 2019, 10:46 am

This from TMF, penned by Kevin Godbold;

Is Persimmon’s 10% dividend yield safe?

Housebuilder Persimmon (LSE: PSN) has seen its share price fall from last year’s highs, but share screening websites are flashing up the firm’s gigantic dividend yield of around 10%. Is there a catch? Sort of.

I reckon the most important thing to note is that Persimmon doesn’t classify its dividend in the ordinary way. Instead, the firm announced a capital return plan back in 2012 in which it set out the payments it aimed to make to shareholders in the following years to 2021. So, the dividends we get from Persimmon are really classified as ‘special’ rather than ‘ordinary’, which means they could stop whenever the directors decide there isn’t enough spare cash left over to pay some back to shareholders.


https://www.fool.co.uk/investing/2019/0 ... ield-safe/

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Re: Persimmon (PSN)

#215410

Postby Breelander » April 16th, 2019, 1:39 pm

idpickering wrote:This from TMF, penned by Kevin Godbold;

...the firm announced a capital return plan back in 2012 in which it set out the payments it aimed to make to shareholders in the following years to 2021. So, the dividends we get from Persimmon are really classified as ‘special’ rather than ‘ordinary’,they could stop whenever the directors decide there isn’t enough spare cash left over to pay some back to shareholders....


The next line does go on to say that...
However, Persimmon has since increased the amount it plans to return to shareholders because of good trading....


PSN wasn't the first the first to introduce such a capital return plan. The Berkeley Group announced a near-identical plan shortly before PSN did.

Breelander wrote:Compare and contrast - while PSN have consistently increased their capital return plan over and above the original planned payments, BKG have cut back their original plan in favour of share buybacks.

I know which I'd prefer to (and do) hold.
viewtopic.php?p=155067#p155067

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Re: Persimmon (PSN)

#218611

Postby idpickering » May 1st, 2019, 7:04 am

Trading Update.

Persimmon plc ("the Group") announces the following trading update covering the period from 1 January 2019 to date, ahead of its Annual General Meeting ("AGM") which is being held at 12.00 noon today.

Persimmon is focussed on building good quality homes at a range of prices offering customers great choice across the UK. Since the start of the year the new build housing market has proved resilient with high levels of employment and low interest rates continuing to support consumer confidence. With mortgage lenders continuing to offer attractive products, the level of customer activity has been encouraging with visitor levels to site, sales conversion rates and cancellation rates all running in line with our expectations.


https://www.investegate.co.uk/persimmon ... 00056505X/

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Re: Persimmon (PSN)

#218769

Postby monabri » May 1st, 2019, 5:20 pm

"Persimmon is focussed on building good quality homes at a range of prices offering customers great choice across the UK"

Hmmm... they might need to supply fire extinguishers in the meantime until the can address major potential safety issues !

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Re: Persimmon (PSN)

#233835

Postby idpickering » July 4th, 2019, 7:07 am

Trading Update.



Good early progress on improving customer satisfaction

Decision to delay sales release to later stage of construction in higher demand locations beginning to deliver anticipated benefits

Build rate remains robust with new home inventories increased by 19% year on year at period end

Customer satisfaction rating improved in the first seven months of the new HBF Survey period

New customer retention scheme being introduced in July, with cover extended to include any faults identified during the first week of occupation


Strong financial performance maintained

Total revenues1 of £1.754 billion (2018: £1.836 billion)

Legal completions of 7,584 (2018: 8,072), reflecting the outcome of our customer service initiatives and later sales releases which reduced average active sites by 8% in H1

Average selling price of c. £216,950 (2018: £215,813)

Anticipate underlying housing operating margin2 of 30.8% for full year 2018 to be a reasonable guide for H1 2019·

More first-time buyers helped on to the housing ladder than any other UK housebuilder.

3,082 new home sales in H1 were to first time buyers - 52% of all private sales (full year 2018 - over 6,850 new home sales, 51% of all private sales)



https://www.investegate.co.uk/persimmon ... 00054297E/

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Re: Persimmon (PSN)

#237589

Postby monabri » July 18th, 2019, 5:00 pm

Seems that PSN are in the news again...for all the wrong reasons.

"Crooks, cowboys and conmen: MP's damning verdict on Persimmon over its appalling building work"

https://www.thisismoney.co.uk/money/new ... -work.html



https://www.devonlive.com/news/devon-ne ... rk-3102240

"Persimmon Homes ordered to stop work after building starts without planning permission"

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Re: Persimmon (PSN)

#237595

Postby Dod101 » July 18th, 2019, 5:11 pm

And the taxpayer is helping this lot? This is the company whose CEO got what was it £85 million?

Good luck to all the shareholders but not a company I would want to be invested in.

Dod

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Re: Persimmon (PSN)

#262689

Postby idpickering » November 7th, 2019, 7:08 am


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Re: Persimmon (PSN)

#277508

Postby idpickering » January 15th, 2020, 7:05 am

Trading Update

Highlights

"Persimmon continues to make good progress with the implementation of its customer care improvement plan. Central to this plan is putting customers before volume, with new home legal completions for 2019 being 4% lower than last year.

"Delivering the maximum benefit to our customers from our quality and service improvement initiatives will continue to be my top priority for 2020. I am pleased with the progress we have made in 2019 and there is more to do. Action taken to maintain our increased levels of work in progress investment, the increase in quality assurance and customer service resources, and our plans for the implementation of the recommendations of the recent Independent Review, will all add to our momentum.

"While our plans for delivering a sustained improvement in quality go far beyond a focus on the criteria of the HBF customer satisfaction survey, our current rating, which is trending strongly ahead of the Four Star threshold, is tangible evidence of the improvement we are making. I am determined that we will make further headway this year, supported by the introduction of Persimmon's customer retention scheme from July 2019, which was a first for the industry.

"I am encouraged by the enthusiasm and commitment with which the whole Persimmon team is making the step change necessary to deliver higher levels of quality and service to our customers. When combined with Persimmon's strong forward build and sales position, robust liquidity and industry-leading land holdings, I am confident of the Group's future success."



https://www.investegate.co.uk/persimmon ... 00058007Z/

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Re: Persimmon (PSN)

#287019

Postby idpickering » February 27th, 2020, 7:16 am

CEO Succession

After 23 years at Persimmon, David Jenkinson has informed the board of his wish to step down as Group CEO in due course. He has signalled his intention early to give the board good time to recruit a successor. Dave will remain in the CEO role and fully committed to leading the ongoing programme of change for as long as the business requires.

Roger Devlin, Chairman of Persimmon, said: "Dave has played a critical role in the development of a new Persimmon. As Chief Executive he quickly set about designing and implementing a programme of change and started the process of resetting the culture of the business. Under his leadership Persimmon has invested in a range of customer care and quality initiatives, prioritised customers over volume, became the first UK housebuilder to implement a retention policy and will achieve an HBF 4-star rating. Throughout this period of significant change, the operational performance of the business has remained strong.

"Dave has the full support of the board and will continue to do so until he leaves. I am grateful that Dave has signalled his intention to step down at an early stage to give us the time to carry out a thorough search process and to continue the evolution of the business."

https://www.investegate.co.uk/persimmon ... 00132695E/

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Re: Persimmon (PSN)

#287036

Postby Breelander » February 27th, 2020, 8:19 am

Final Results

Financial highlights
· Financial trading performance remains strong
- 15,855 new homes sold (2018: 16,449) - 4% down on last year
- Total new homes average selling price of £215,709 (2018: £215,563)
- Total Group revenue 2.4% lower at £3.65bn (2018: £3.74bn)
- Underlying new housing operating margin5 of 30.3% (2018: 30.8%)
- Profit before tax of £1,041m (2018: £1,091m)
- Net free cash generation6 of £544m (2018: £478m)
- Basic earnings per share of 266.8p (2018: 283.3p)
- Return on average capital employed7 of 37.0% (2018: 41.3%)
- Return on equity8 of 26.3% (2018: 27.7%)

...

Shareholder returns
- Return of surplus capital of £1.25 per share (£397.7m) paid 29 March 2019 in addition to the scheduled payment of £1.10 per share (£350.1m) paid on 2 July 2019
- Interim and Final dividends of £1.25 and £1.10 per share respectively declared for 2019 to be paid in 2020
- Commitment to a total return of £2.35 per share in 2021 (2020: £2.35)

https://www.investegate.co.uk/persimmon ... 00092734E/

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Re: Persimmon (PSN)

#293889

Postby idpickering » March 25th, 2020, 7:25 am

Covid-19, Capital Return Plan and AGM Updates

Including this re the dividend;

Accordingly, the Board of Persimmon has decided to: (i) cancel the proposed 125p per share interim dividend payment of surplus capital to shareholders on 2 April 2020; and (ii) to postpone the proposed annual, final dividend payment of 110p per share on 6 July 2020 and reassess it later in the calendar year when the effects of the virus will be clearer. Whilst the Company's regular annual payment of at least 110p per share has been stress tested for payment through the housebuilding industry cycle, the Covid-19 virus presents an exceptional set of circumstances.


https://www.investegate.co.uk/persimmon ... 00064710H/


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