Persimmon Plc is one of the UK’s leading housebuilders.
We are a team of over 5,000 people focused on building good quality homes for our customers. We aim to create and protect superior and sustainable levels of value for the benefit of our customers, workforce, suppliers and shareholders through the housing cycle. We sold 15,855 new homes in 2019. Our underlying new housing operating margin* was 30.3% for the year ended 31 December 2019 (2018: 30.8%) and our profit before tax was £1,041m (2018: £1,091m).
Persimmon aims to provide homes for all by constructing a wide range of good quality affordable homes in places where people want to live and work right across the UK. The Group’s average private selling price of £241,985 is 18% lower than the national average for newly built homes sold to owner occupiers**. Persimmon supports more first time buyers onto the housing ladder than any other UK major housebuilder, with 50% of our private new homes being sold to first time buyers in 2019.
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 are confident that our strategic land portfolio of c.15,900 acres will, in due course, yield in excess of 100,000 forward plots for future development by the Group.
To support our construction operations we continue to invest in our off-site manufacturing capability. Our brick manufacturing factory has the capacity to produce c. 80m bricks a year which approximates to two thirds of the Group’s brick requirements. Additionally, the Group has constructed its own roof tile manufacturing facility which plans to commence deliveries to sites in spring 2020. This new facility will secure quality, cost and supply of this key material component. Finally, the Group’s Space4 business produces a “fabric first” solution to the construction of new homes using off-site manufacturing techniques to produce timber frames, highly insulated wall panels and roof cassettes. During 2019 Space4 delivered c. 6,900 timber frame house kits and insulated roof systems to the Group’s housebuilding businesses.
The expertise of all the Group’s employees and subcontractors are key ingredients in delivering the Group’s strong operational performance. We continue to invest in the training and development of our employees and we are delivering improvements in customer care and levels of service through further investment in our teams, processes and systems.
*Stated before goodwill impairment (2019: £7.3m, 2018: £9.2m) and based on new housing revenue (2019: £3,420.1m, 2018: £3,545.8m).
** National average selling price for newly built homes sourced for the UK House Price Index as calculated by the Office for National Statistics from data provided by HM Land Registry.