Persimmon Plc is one of the UK’s leading housebuilders. Our financial discipline means we have:
A very strong balance sheet
Excellent margins and profitability
Robust 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 7,794 homes in the first half of 2017, 556 more homes than in the same period in 2016. Our underlying operating margin (before goodwill impairment) was 27.6% for the six months to 30 June 2017 (2016: 23.8%) and our profit before tax increased 30% to £457.4m (2016: £352.3m).
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.355 active sites and a superior turnover of work in progress. Our return on average capital employed was 47.3% in the six months to 30 June 2017 (2016: 35.6%)*.
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.16,340 acres of strategic landholdings at 30 June 2017 and our success at converting this asset to land with planning permission means that c.49% of our consented landbank has been converted from our strategic land portfolio.
*12 month rolling average stated before goodwill impairment.