Persimmon Plc is one of the UK’s leading housebuilders. Our financial discipline means we have:
A very strong balance sheet
Improving margins and profitability
Excellent cash generation
We are a team of c.4,500 people focused on the successful growth of our business and our results demonstrate our ability to react swiftly to changes in housing demand whilst improving the quality of shareholder returns. We sold 15,171 homes during 2016, 599 more homes than in 2015. Our underlying operating margin (before goodwill impairment) was 24.8% during 2016, a 13% increase on the prior year and our profit before tax (before goodwill impairment) was £782.8m for 2016, up 23% on the prior year.
We concentrate on family housing with c.90% of our sales being traditional house types, with just under 50% of our private home sales at prices below £200,000 creating a large potential customer base.
We maintain a strong focus on capital efficiency and return on average capital employed, which is supported by strong capital disciplines, controlled investment in our c.390 active sites and a superior turnover of work in progress.
One of our main strengths and a key element to our strategy is the conversion of our strategic landholdings to land with planning permission and the value this asset can create for shareholders. We have c.16,600 acres of strategic landholdings at 31 December 2016 and our success at converting this asset to land with planning permission means that c.48% of our consented landbank has been converted from our strategic land portfolio.