Investment Case
Maintaining financial strength through the housing cycle
Persimmon is one of the UK’s leading homebuilders, with high quality land holdings, a strong balance sheet and a highly experienced management team.
We are well positioned in our market, providing high quality homes at attractive prices for our customers.
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Our investment case
Three strong brands
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Our investment case
UK-wide network
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Our investment case
Disciplined approach
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Our investment case
Innovation and technology
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Our investment case
Strong operating platform
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Our investment case
Vertical integration
Our investment case
UK-wide network
We have a UK-wide network with 30 operating businesses, three housebuilding brands and off-site manufacturing facilities providing homes and serving local communities.
We are a national housebuilder with a local focus. This ensures that our developments are aligned with local needs, as we build good-quality homes which are affordable for local people.
Our investment case
Disciplined approach
Persimmon has a strong track record of acquiring high quality land. We have significant experience in identifying high potential sites in attractive locations where people wish to live and work.
We acquire land from multiple channels and have a strong track record of designing sites that deliver for both Persimmon and our customers. This achieves high quality embedded margins across our portfolio. At the end of 2022, we had 87,190 plots owned and under our control across the UK, providing good visibility over future developments.
We have a highly disciplined approach to work in progress investment, taking into account current levels of demand, the cash cost of fire safety remediation works and land creditor commitments. The Group operates from an already lean fixed cost base and has an established and disciplined cost control process. With a strong balance sheet, we can be agile to quality opportunities as they arise.
Our investment case
Innovation and technology
We are continuing to innovate through the increased use of Modern Methods of Construction (‘MMC’) providing security of our supply chain and exploring solutions to meet changing regulations within the building industry. We are investing in a second Space4 factory to complement our existing factory and our Tileworks and Brickworks manufacturing facilities. We are also exploring where we can manufacture additional components and further improve the quality of our homes. Our FibreNest business was developed in response to feedback from customers and aligns with the current Government strategy to deliver modern technology to new homes.
Our investment case
Strong operating platform
We have a strong platform led by an experienced operational management team that have deep industry skills and knowledge. The national footprint of our business means we benefit from scale with a good track record of building efficiently. We have made significant progress on quality over recent years, with The Persimmon Way fully embedded across the business as we look to build right, first time, every time. This, combined with the Group’s longstanding commercial excellence, positions the business well to meet the strong demand for new homes over the long-term.
Our investment case
Vertical integration
Our vertical integration provides us with security of supply over key material components while allowing continued innovation.
- Our Space4 manufacturing business produces timber frames, highly insulated wall panels and roof cassettes as a ‘fabric first’ solution to the construction of new homes.
- Our Brickworks produces concrete bricks and is entirely focused on supplying the Group’s housebuilding operations.
- Tileworks, the Group’s own concrete roof tile manufacturing facility, produces tiles solely for the Group.
- FibreNest is the Group’s own ultrafast, nationwide full fibre broadband service to the home, which aims to ensure all our customers are connected to the internet from moving in day.
See our brands for further information.
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