Persimmon (PSN)

[idpickering]

Half Year Results.

Dean Finch, Group Chief Executive, said:

"Against a backdrop of higher mortgage rates, the removal of Help to Buy and significant market uncertainty, Persimmon has delivered a robust sales rate excluding bulk sales whilst growing the private average selling price in our forward order book and also securing cost savings. We are on track to deliver profit expectations for the year and are building a platform for future growth.

"Our private sales rate has remained broadly consistent throughout the period resulting in a private forward order book that is now 83% higher than it was at the beginning of the year, despite controlled use of sales incentives and limited recourse to investor deals. Our pricing overall has remained resilient with continued positive momentum in the forward order book. However, the reduced volumes in the first half of the year has negatively affected our operating margins as we predicted earlier in the year. As we look forward, we expect increasing completions to result in improving operating margins.

"We have been proactive in managing our cost base however, this has been done without losing our focus on quality. We were delighted to retain a five-star customer service rating in the period and have made very pleasing progress in our Trustpilot scores. The Group's national network of outlets providing high quality products at a range of attractive prices and an improved brand reputation are crucial strengths in this market.

"We have maintained targeted investment in exceptional new land opportunities and enhanced key capabilities to deliver high quality homes for customers consistently. Subject to the challenges in the planning system we are determined to grow our outlet numbers in a disciplined way. Our new Space4 factory and investment in TopHat modular manufacturer will help us drive even greater efficiencies in the coming years. We are carefully strengthening our operations and national outlet network to position ourselves for future growth while protecting margins.

"With the historic under-supply of homes the longer term outlook for housing remains positive. Persimmon has a proven track record of delivering strong returns through the cycle. I am confident that the combination of a relentless focus on our key enduring strengths while enhancing key capabilities, will again drive strong returns through the next cycle."

And latwe;

On 10 August 2023, the Board announced their intention to pay 20p per share (or £63.9m) of surplus capital to shareholders as an interim cash dividend in respect of the financial year 31 December 2023.

https://www.investegate.co.uk/announcem ... ts/7687419

Div 20p ps, Ex div 12 Oct 23, paid 03 Nov 23.

Ian.

[idpickering]

Q3 Trading Statement.

Persimmon Plc is today providing an update on trading for the period from 1 July 2023 to 6 November 2023 ('the period').

Dean Finch, Group Chief Executive, commented:

"Trading in the period was in line with expectations and pricing was broadly stable. We are on track to deliver around 9,500 quality new homes in 2023 with operating profit in line with expectations and at an operating margin similar to the first half. While the near term is likely to remain challenging and we remain disciplined on costs, we continue to position the business for growth when the market recovers, as demonstrated by our further progress on planning in the period. The Group's national network of outlets providing a high-quality product at a range of attractive prices is a crucial strength in this market."

2023 Trading

The Group traded in line with expectations during the third quarter, delivering a total of 1,439 homes (Q3 2022: 2,270 homes). This included 1,234 private homes (Q3 2022: 1,894 homes) and 205 partnerships homes for our housing association partners (Q3 2022: 376 homes).

The Group's private selling price on completions was up 2% in the quarter on the prior year at £296,822. Our partnerships average selling price increased 20% in the same period, reflecting a higher weighting of completions to the South compared with the prior year and the continued work of our dedicated Partnerships team.

Average private sales per outlet per week were 0.48 in the period (Q3 2022: 0.63). Trading in the period followed the normal seasonal drop over the summer months and a pick-up from September following the launch of our latest marketing campaign. Pricing was broadly stable in the period despite continued affordability constraints, particularly in the South of England where we have seen an increase in the use of incentives. In the third quarter, average incentives on private sales increased to c.3.6%.

https://www.investegate.co.uk/announcem ... t-/7864158

Ian (No holding).

[idpickering]

Appointment of Chief Financial Officer.

The Board of Persimmon Plc is pleased to announce the appointment of Andrew Duxbury as Chief Financial Officer (CFO). Andrew will join the Board as an Executive Director, with his start date to be confirmed in due course. Dean Finch, Group Chief Executive, will continue to hold interim responsibility for the finance function, supported by Mike Smith, Group Financial Controller, until Andrew joins.

https://www.investegate.co.uk/announcem ... er/7866952

Ian (No holding).

[idpickering]

Trading Statement

Persimmon Plc today announces the following update ahead of its Final Results for the year ended 31 December 2023, which will be released on 12 March 2024.

Trading

The Group successfully navigated challenging market conditions in 2023 and completed the sale of 9,922 new homes, ahead of previous guidance, with a particularly strong delivery in Q4. This was achieved while providing exceptional service to our customers and we are proud to have maintained our 5-star HBF rating. We have further improved our quality metrics in the year to what we believe are our best ever, with a 43% improvement in reportable items per home in 2023, as measured by the NHBC.

Dean Finch, Group Chief Executive, commented:

"Persimmon performed well in challenging market conditions, delivering completions ahead of expectations in 2023 alongside enhanced quality metrics of our already five-star homes. Persimmon's offering is resonating well with customers with sales rates relatively robust throughout the year. We have successfully balanced our need to control costs, whilst investing in the business to position it for sustainable growth when conditions improve.

"I would like to thank our colleagues, sub-contractors and suppliers for their commitment and support. Their hard work has helped ensure that Persimmon remains well positioned to serve customers across the UK who seek high quality, sustainable homes at a price they can afford."

https://www.investegate.co.uk/announcem ... nt/7982247

Ian (No holding).

[idpickering]

FULL YEAR RESULTS FOR THE YEAR ENDED 31 DECEMBER 2023

Dean Finch, Group Chief Executive, commented:

"The Group successfully navigated the challenging market conditions in 2023. Completions were ahead of expectations, margins were industry-leading, we maintained our strong balance sheet and we continued to deliver further improvements in our product quality and service.

Although the near-term outlook remains uncertain, the significant pent-up demand for homes remains unchanged. Customers want quality homes in the places where they want to live and work, and affordability is crucial. During the year we have continued to take further steps to strengthen the business and we are well placed to meet this demand through our three excellent brands offering different price ranges with overall private average selling prices that are below the market average. The investments and operational changes that we have made in the past few years mean that we are trusted by our customers to deliver consistently high-quality homes.

We can achieve this while positioning the business to maintain industry-leading financial returns as markets recover, supported by our vertically integrated business model, strategic land buying and disciplined approach to cost control. Through further investments in innovation, I believe we can build even higher quality homes better, faster and more efficiently over time.

We are well placed to manage the ongoing uncertainty and we have good visibility over our land pipeline which, over the medium-term, will support a return to growth in outlets and volumes, alongside improved margins and robust cash generation, paving the way for sustainable shareholder returns."

And later;

On 12 March 2024, the Directors announced the scheduled CAP payment of 40p per share as a final dividend in respect of the financial year 31 December 2023.

https://www.investegate.co.uk/announcem ... ts/8082220

Ian (No holding).

[idpickering]

Annual Report 2023 and Notice of Annual General Meeting 2024.

The Company announces that the Annual Report 2023 and Notice of Annual General Meeting 2024 have today been posted or otherwise made available to shareholders.

https://www.investegate.co.uk/announcem ... 24/8105577

Ian (No holding).

[idpickering]

Q1 Trading Statement

Dean Finch, Group Chief Executive, commented:

"Persimmon has had a good start to the year and is on track to deliver growth in completions to between 10,000-10,500 for the full year. Our first quarter performance was in line with expectations, and we saw an improvement in sales rates alongside firm pricing. Trading over recent weeks has been encouraging with robust visitor numbers and enquiries, giving us confidence for the remainder of the year. Overall, our private forward order book is up 18% on the prior year with the embedded private average selling price ahead of the position at the start of the year. We are making good progress in expanding our outlet network and we will continue to position the business for success, maintaining our focus on quality and customer service, and converting our land holdings into active developments."

https://www.investegate.co.uk/announcem ... t-/8155602

Ian (No holding).