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STRONG GROWTH;
STRONG PLATFORM
Persimmon Plc Annual Report 2025
Persimmon is built on a strong platform for growth,
underpinned by trusted brands, financial resilience
and a skilled workforce. With a clear focus on quality,
efficiency and innovation, we are well positioned to
deliver sustainable value for customers, communities
and shareholders, while supporting the UK’s housing
needs for the future.
Our achievements are
possible only thanks to
ourexceptional people.
Iwould like to sincerely
thank every member ofthe
Persimmon team for their
dedication, expertise
andcommitment.
Dean Finch
Group Chief Executive
Strategic report
01 Our strategic framework
02 At a glance
03 Highlights 2025
03 Investment case
04 Chairman’s statement
06 Our markets
08 Our business model
09 Our value chain
10 Vertical integration
12 The value we create
13 Group Chief Executive’s statement
16 Our strategy
18 Key performance indicators
22 Financial review
25 Our people
28 Sustainability
50 Non-financial andsustainability
informationstatement
51 Section 172 statement
58 Principal decisions
59 TCFD
70 Principal and emerging risks
77 Viability statement
Governance
80–117 Directors' report
80 UK Corporate Governance Code 2024
81 Governance at a glance
83 Chairman’s introduction togovernance
86 Board leadership
88 Corporate governance statement
101 Nomination Committee report
108 Audit & Risk Committee report
115 Other disclosures
118 Remuneration Committee report
143 Statement of Directors’ responsibilities
Financial statements
144 Independent auditor’s report
151 Consolidated statement of
comprehensive income
152 Balance sheets
153 Statement of changes in
shareholders’equity
155 Cash flow statements
156 Notes to the financial statements
196 Other information
CLEAR PRIORITIES
WITHSUSTAINABILITY
ATTHE HEART
Our mission
To build homes with quality our customers
canrely on at a price theycan afford.
Our vision
To be Britain’s leading homebuilder, with
quality andcustomer service at its heart,
building the best value homes on the market
insustainable and inclusive communities.
We will invest in innovation and technology
to extend our low-cost strengths and
enhance our five-star capabilities to enable
as many peopleaspossible to buy the
homeswe build.
Our strategic framework
Read more about this on pages 16 and 17
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Customer focused
Value driven
Teamwork
Social impact
Excellence always
1
Build quality
and safety
2
Customers at the
heart of our business
3
Disciplined growth:
high-quality land
investment
4
Industry-leading
financial
performance
5
Supporting
sustainable
communities
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Read more on pages 16 and 17
Persimmon Plc Annual Report 2025 – 01Financial statementsGovernance Other informationStrategic report
At a glance
THREE STRONG BRANDS
PROVIDING DIVERSIFICATION
Persimmon is a leading UK homebuilder and is well placed with three strong brands. We have a
differentiated proposition focused on delivering high-quality homes at attractive price points for
our customers.
Discover more at www.persimmonhomes.com
Group housing
revenue
(£m)
Homes
sold
Land holdings
(plots)
30
North Scotland
East Scotland
West Scotland
Lancashire
North
East
Durham
Teesside
West
Yorkshire
Yorkshire
Nottingham
North West
West
Midlands
East Wales
West Wales
Severn
Valley
Wessex
Thames
Valley
South East
South
Midlands
Central
North
Midlands
Midlands
East
Midlands
Anglia
Suffolk
Essex
South
Coast
South
West
Cornwall
North and East Yorkshire
Eastern Counties
Southern
South West & Midlands
Central & Wales
Scotland North & West
Offices
Off-site manufacturing
Head office
Discover more about our
locations online:
www.persimmonhomes.com/
corporate/about-us/
our-locations/
Attractive product in its target market; builtandpricedwhere
value is important
Persimmon Homes is our core brand, which delivers a range of traditional family
housing throughout the UK in places where customers wish to live and work.
Witha focus on delivering value and quality for our customers, we sell most
ofourhomes under this brand.
Repositioned brand driving growth and value
The Charles Church brand complements and differentiates itself from Persimmon
by delivering larger, higher specification homes in premium locations across the
UK. We build homes under this brand tailored to local markets where our research
and experience have identified a strong demand for a premium product.
Expandingpartnershipopportunities
Westbury Partnerships is our brand with a focus on affordable social and Build
toRent housing. We sell these homes to housing associations and institutional
investors across the UK. This brand plays a key part in the delivery ofsustainable
homes for people looking to rent rather than buy their home, aswellas offering
solutions to some of the country’s affordable housing needs.
Persimmon Homes 2,498
Charles Church 465
Westbury Partnerships 349
Total 3,312
Persimmon Homes 8,730
Charles Church 1,100
Westbury Partnerships 2,075
Total 11,905
Persimmon Homes 58,260
Charles Church 10,950
Westbury Partnerships 15,669
Total 84,879
Financial statementsGovernance Other informationStrategic report02 – Persimmon Plc Annual Report 2025
Highlights 2025
1. Stated before net exceptional charge (2025: £44.9m; 2024: £34.4m) and goodwill impairment (2025: £3.4m; 2024: £1.6m).
2. 12-month rolling average calculated on operating profit before net exceptional charge (2025: £44.9m; 2024: £34.4m),
goodwill impairment (2025: £3.4m; 2024: £1.6m) and total capital employed. Capital employed being the Group’s net assets
less cash and cash equivalents plus land creditors.
3. The value of homes delivered to housing associations, the value of discounted open market value homes plus the value of planning
contributions we have made over the last five years.
4. The Group participates in a National New Homes Survey, run by the Home Builders Federation. The rating system is based on the
number of customers who would recommend their builder to a friend.
5. Estimated using an economic tool kit.
Operational highlights
Number of new homes sold
11,905
2024: 10,664
Net private sales rate
0.70
2024: 0.70
Outlets at 31 Dec
277
2024: 270
Average selling
price 2025
£278,203
2024: £268,499
Underlying
operating profit
1
£472m
2024: £405m
Return on capital
employed (‘ROCE’)
2
11.7%
20 24: 11.1%
Cash at 31 Dec
£117m
2024: £259m
Owned land holdings (plots)
70,236
2024: 69,189
Dividend per share
60p
2024: 60p
Sustainable
Investment in
local communities
3
c.£2.3bn
2024: c.£2.2bn
Customer
satisfaction score
4
93.5%
2024: 96.0%
Construction and supply
chain jobs supported
5
c.96,000
2024: c.79,000
DRIVING GROWTH
Investment case
High-quality
land bank and
growing
outlets
Three strong
brands
providing
diversification
Excellence in
build quality
and customer
service
Innovation
and unique
vertical
integration
Strong
balance sheet
Operating margin and
ROCE ambition of 20%
Increasing
shareholder returns
Supported by market fundamentals
and a pro housing Government
Investment case in action
AMBITION TO
DOUBLE THE SCALE
OF CHARLES CHURCH
During the year we launched our refreshed Charles Church brand
atHarlestone Grange in Northampton. We are seeing good demand
forour premium Charles Church homes and are targeting doubling
thescale of the business.
Volume
Margin
ROCE
Shareholder return
Persimmon Plc Annual Report 2025 – 03Financial statementsGovernance Other informationStrategic report
BUILDING MOMENTUM
FROM ASTRONG
PLATFORM
Chairman’s statement
Introduction
I am delighted to report another
year of positive progress in 2025,
achieving meaningful growth of
12% in completions in a challenging
market environment.
The progress that we have made over recent years –
expanding our outlet base, enhancing our planning
capability, developing our brands, investing in our
people and strengthening our vertically integrated
model – continues to differentiate our operational
platform from others and support ourlong-term strategy.
We remain true to our three core principles of high
standards of build quality, a strong balance sheet,
andexcellent operational efficiency enhanced by
vertical integration.
We were delighted to be awarded five-star status by
the Home Builders Federation (‘HBF’) for a fourth year
in a row, with customer excellence firmly embedded
within the Group’s strategic ambitions.
Our strong balance sheet has enabled us to make
disciplined investments at the appropriate point in
thecycle, expanding our land bank to support future
growth, guided by clear principles that ensure our
long-term ambitions remain firmly on track. In line
withour focus on core competencies and disciplined
capital allocation, we completed the sale of FibreNest,
the broadband provider business in August 2025,
enabling us to reinvest proceeds into areas that best
support Persimmon’s long-term growth ambitions
andoperational excellence.
Our three distinct brands – the core Persimmon product,
a revitalised Charles Church range, and Westbury
Partnerships focused on housing for our institutional
and registered provider customers – have all contributed
to deliver strong results for the year. This diversified
portfolio enables us to address a broad spectrum
ofcustomers.
Our vertically integrated model helps secure our
supply chain and support our capacity to consistently
deliver high-quality, affordable homes with industry-leading
margins. I have been delighted to see the progress
made, particularly at Space4 following the installation
of a new robotic line during the year.
Persimmon is in an excellent position to continue
growing, with a focused strategy and differentiated
platform to deliver strong financial results and value
for its shareholders.
Industry leadership
The UK’s housing need is well documented, and the
Government is committed to an ambitious housebuilding
target. Persimmon is positively engaged with Government,
and we welcome the beneficial changes to the planning
environment that the Government has introduced,
which should improve over time.
We remain dedicated to our building safety remediation
programme. In line with this, we were the first housebuilder
to sign the Scottish Government’s developer remediation
contract in December, demonstrating our commitment
to dealing with the programme diligently and swiftly.
Thanks to our proactive efforts, we have begun or
finished work on 77% of identified developments.
Weremain on track to complete most of the required
works over the course of the next two years, and further
progress on our remediation work will allow us the
opportunity to update our future capital allocation priorities.
We remain true
toour three core
principles of high
standards of build
quality; a strong
balance sheet;
andexcellent
operational
efficiency.
Roger Devlin
Chairman
Financial statementsGovernance Other informationStrategic report04 – Persimmon Plc Annual Report 2025
Shareholder returns
Our Capital Allocation Policy balances returns to
shareholders with investment for future growth. For 2025,
the Board proposes a final dividend of 40p per share,
payable on 10 July 2026 to shareholders on the
register at 19 June 2026, following shareholder
approval at the AGM. This dividend, combined
withthe interim dividend of 20p per share paid
inNovember 2025, totals 60p per share for the
2025financial year.
Board changes
As previously announced, Anand Aithal formally
joined the Board on 1 January 2025, and we are
already seeing the benefit from his wealth of
experience across many sectors.
Nigel Mills retired from the Board in May 2025
afternine years of service. On behalf of the Board,
Iwould like to extend my sincere thanks to Nigel for
hiscontribution during his time as a member of the
Board and wish him all the best for the future.
Duncan Davidson
I wish to pay heartfelt tribute to our esteemed founder,
Duncan Davidson, whose passing in October 2025
marks the loss of a visionary leader and the guiding
force behind Persimmon. Duncan was instrumental to
my appointment as Chairman and was always available
to provide help and guidance. Since establishing the
Company in 1972, Duncan’s unwavering dedication,
integrity, and principled leadership shaped our values
and left an enduring legacy – not only within our business
but also in the communities we serve across the UK.
His memory will forever inspire our commitment to
excellence and our belief in building thriving communities,
reflecting the spirit and standards Duncan championed
throughout his remarkable life. Iam delighted that we
are establishing an Apprenticeship Programme in his
honour funded by the Persimmon Charitable Foundation.
In conclusion
I would like to thank all our colleagues, partners
andstakeholders for their unwavering support
andcommitment during what has been a period
ofchallenge and achievement.
Although we operate within a challenging geopolitical,
economic and policy environment, our focus remains
on what we can control, executing on our strategy
andbuilding our business. As we look ahead, I am
confident that Persimmon’s strong foundations, clear
strategic direction and dedicated team will ensure
wecontinue to deliver growing value for customers
and shareholders alike.
Roger Devlin
Chairman
9 March 2026
DUNCANDAVIDSON
1941-2025
Duncan Davidson founded Persimmon in 1972 and led the
business until his retirement as
Executive Chairman in 2006.
On retiring, Duncan was appointed Life President of the
Company.
Duncan passed away in October 2025,
butheleaves behind a remarkable legacy.
Through his determination, integrity and pioneering spirit, Duncan grew Persimmon from
a small regional builder into one of the nation’s leading housebuilding companies.
Duncan was a man of great vision and entrepreneurship; he was pivotal to every stage
ofPersimmon’s growth. Duncan is also remembered for his warmth, humility and his belief
in doing things the right way. Duncan’s values continue to shape who we are today.
Duncan’s legacy lives on in the thousands of homes Persimmon has built, thecommunities
we continue to serve and the people whose lives he helpedshape.
In tribute to Duncan, we are launching an apprentice programme in his honour through
the Persimmon Charitable Foundation. The Duncan Davidson Apprenticeship Programme
will provide financial support to enable young people who might otherwise be unable to
do so, to access a career in housebuilding.
Persimmon Plc Annual Report 2025 – 05Financial statementsGovernance Other informationStrategic report
Our markets
GROWTH IN A CHALLENGING MARKET
Housing supply: persistent
challenges, planning policy
The UK continues to face a structural undersupply of
housing, with population growth and the need to replace
ageing stock intensifying the crisis. The Government’s
commitment to deliver 1.5 million homes over this Parliament
remains
1
, but delivery is lagging: completions in England
for the 12 months to September 2025 were well below
the 300,000 required annually tomeet the target. The
Government has reaffirmed its pro-housebuilding stance,
passing the Planning and Infrastructure Act in December
2025, andincreased funding with £39bn
2
pledged
under the Affordable Housing Programme as part of the
June Spending review. While encouraging, the sector
awaits changes on the ground. For example, the key
measures of the Act still require enabling through
secondary legislation.
1.5m homes
Government target for new home additions
overthis Parliament¹
Our response
We have proactively enhanced our planning approach
over the past few years and secured approvals on 12,815
plots in 2025 — exceeding utilisation rates and demonstrating
resilience despite policy uncertainty. Our engagement with
policymakers remains robust, advocating for streamlined,
sustainable development and faster planning decisions.
We are leveraging our national land bank and strategic
land pipeline to maintain delivery momentum, while
closely monitoring evolving planning frameworks and
environmental requirements. This allowed us to grow
ouroutlet base during 2025, against industry trends,
with further growth expected in 2026.
Discover more at www.persimmonhomes.com
1. www.gov.uk/government/news/planning-overhaul-to-
reach-15-million-new-homes.
2. www.gov.uk/government/publications/delivering-a-
decade-of-renewal-for-social-and-affordable-housing/
delivering-a-decade-of-renewal-for-social-and-
affordable-housing.
Affordability and market
trends: headwinds remain
In 2025, the UK economy continued its recovery,
withreal GDP growth estimated at 1.3%. Although
inflation has eased, it continued to exceed the Bank
ofEngland’s target, which has dampened the pace
ofrate cuts impacting affordability, particularly for
first-time buyers. Nevertheless, wage growth has
outstripped house price inflation, and mortgage rates
have declined — with the average two-year fixed rate
at 4.86%
1
in December 2025. Meanwhile, despite a
pause on investment in the lead up to the Budget, total
institutional investment in Build to Rent (’BTR’) schemes
totalled a record c.£5.3bn in 2025
2
. 59% of this was
for single family housing, continuing the trend seen in
2023 and 2024.
While the Autumn Budget contained little direct impact
on housebuilders, the introduction of a mansion tax for
properties over £2m from April 2027, adjustments to
pension salary sacrifice, new pay-per-mile charges for
electric vehicles, higher taxes on rental income, frozen
income tax thresholds and a consultation on ending
Lifetime ISAs could have an impact on the wider
housingmarket.
Our response
We continue to offer a broad range of homes at
accessible price points, with our core private average
selling price below the national average. During 2025,
we also launched two new products, New Build Boost
and Rezide to help our customers bridge the affordability
gap with an interest-free loan of 15% of the purchase
price. Our diversified brand portfolio — spanning our
core Persimmon brand, the premium market through
Charles Church, and the BTR/affordable institutional
markets through Westbury — enables us to adapt to
regional market dynamics. Strategic partnerships in the
private rental and affordable housing sectors underpin
our resilience and growth, while our national footprint
provides a buffer against regional volatility.
1. www.moneyfactsgroup.co.uk/media-centre/group/
lenders-slash-rates-and-improve-choice-for-borrowers/.
2. Savills UK Build to Rent Market update.
Links to key priorities
1
Build quality and safety
2
Customers at the heart of our business
3
Disciplined growth: high-quality land investment
Read more on pages 16 and 17
Links to principal risks
1
UK economic and market conditions
2
Government policy and political risk
6
Land and planning
7
Supply chain
12
Regulatory compliance
Read more on pages 73 to 76
Links to key priorities
2
Customers at the heart of our business
3
Disciplined growth: high-quality land investment
5
Supporting sustainable communities
Read more on pages 16 and 17
Links to principal risks
1
UK economic and market conditions
2
Government policy and political risk
6
Land and planning and planning
Reputation
Read more on pages 73 to 76
Financial statementsGovernance Other informationStrategic report06 – Persimmon Plc Annual Report 2025
Labour and build cost
pressures: benefiting
fromvertical integration
Labour shortages, an ageing workforce and persistent
skills gaps continue to constrain productivity and inflate
build costs nationally. While build cost inflation was at a
more normal c.2%-3% in 2025, the impact on projects
acquired in previous years remains. The sector’s focus on
apprenticeships and graduate programmes is growing,
but as the industry returns back to previous peak
volumes, supply may be constrained. In addition, the
2025 Budget introduced a sharp increase in landfill
taxes (with the lower rate for inert materials such as
topsoil, doubling from April 2026, and further rises
expected in future years) adding further regulatory
costpressure to developers.
526
trainees and apprentices within the business
c.96,000
supply chain jobs supported
Our response
We are mitigating supply chain and cost challenges
through robust supplier agreements and investment in
vertical integration. Our apprenticeship and educational
partnerships are expanding, with over 520 trainees and
apprentices currently in training and c.96,000 supply
chain jobs supported. We continue to invest in our
factories as we look to increase productivity as well as
increase off-site manufacture. During 2025, we installed
a new semi-automated timber frame line and were the
first developer to install an automated roof truss line,
both at our existing Space4 timber frame factory. We
also continue to pilot innovative construction methods,
including with a brick facade system. As we increase the
use of timber frames and continue to find innovative
solutions, this will drive efficiency and address
longer-term skill shortages.
Discover more at www.persimmonhomes.com
Regulatory shifts: adapting
to a changing landscape
The regulatory environment remains changeable.
TheGovernment’s planning reforms aim to reinstate local
housing targets and streamline approvals, but
implementation timelines remain uncertain. The Future
Homes Standard (’FHS’), targeting net zero-ready homes,
is still to be finalised and a date set for implementation.
TheBuilding Safety Levy, designed to fund remediation
of unsafe cladding, will be introduced in Autumn 2026.
The Competition and Markets Authority (’CMA’) closed
itsinvestigation into housebuilding in October 2025,
with the sector committing to enhanced compliance,
transparency and a £100m contribution to affordable
housing (of which Persimmon contributed £15.2m)
1
.
Our response
We are actively preparing for regulatory change,
withenergy transition plans in place for all developments
and early adoption of low-carbon heating solutions such
as air source heat pumps. Our compliance and training
programmes are being enhanced in line with CMA
commitments, and we are working closely with industry
bodies to shape best practice on information exchange
and competition.
1,328
Low-carbon heating solutions installed instead
of gas boilers
Discover more at www.persimmonhomes.com
1. www.gov.uk/government/news/affordable-housing-set-
to-benefit-from-100-million-following-cma-probe.
Links to key priorities
1
Build quality and safety
4
Industry-leading financial performance
Read more on pages 16 and 17
Links to principal risks
1
UK economic and market conditions
2
Government policy and political risk
7
Supply chain
9
Skilled workforce, retention and succession
Read more on pages 73 to 76
Links to key priorities
1
Build quality and safety
2
Customers at the heart of our business
3
Disciplined growth: high-quality land investment
4
Industry-leading financial performance
Read more on pages 16 and 17
Links to principal risks
2
Government policy and political risk
3
Climate change and sustainability
5
Building safety and legacy buildings
6
Land and planning
Reputation
12
Regulatory compliance
Read more on pages 73 to 76
Persimmon Plc Annual Report 2025 – 07Financial statementsGovernance Other informationStrategic report
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Our business model
WHAT WE DO
We are a UK homebuilder focused
on identifying and meeting local
housing needs. Our skilled land,
planning and design teams
collaborate closely with local
governments, landowners and
communities to plan and deliver
developments in areas where
people desire to live and work.
With a disciplined land investment strategy and
in-house manufacturing facilities for key materials,
weensure quality and sustainability. Our goal is to
create affordable, well-designed homes within
sustainable communities, backed by exceptional
customer service throughout the home-buying journey.
See Sustainability on
pages 28 to 49
BRANDS
AND
GEOGRAPHIC
REACH
Our UK-wide network and
three strong brands provide
quality homes at a range
ofprice points.
VERTICAL
INTEGRATION
AND
INNOVATION
Our factories provide
security of supply over key
materials while allowing
continued innovation.
HIGH-QUALITY LAND
Our high-quality land holdings with industry-leading
embedded margins areakey strength.
QUALITY AND AFFORDABILITY
We build high-quality homes at attractive
prices,enabling our customers to access
thehousingmarket.
CUSTOMERS
Placing customers first, building
trust and delivering exceptional
value homes.
Financial statementsGovernance Other informationStrategic report08 – Persimmon Plc Annual Report 2025
Land
Through a disciplined and strategic approach to land
acquisition, we leverage strong local relationships to
secure optimal opportunities, with a significant proportion
of our completions sourced from our strategic land
bank. This approach consistently delivers superior
margins compared toopen market purchases.
Our value chain
VALUE CREATION AT EVERY STAGE
Our value chain is fundamental to driving growth at every stage of our operations. Right from the way
we acquire land through to handing over keys to the customer, we are maximising growth and driving
returns. We choose where to build, how to build and what to build to drive value creation.
Planning
Our strong master planning skills and high plot density
drive value from the land we purchase. We have a
local engagement-led approach to achieving planning,
which is driving success in achieving approvals.
Procurement and construction
In procurement and construction, our unique vertically
integrated model is a key driver of business value,
ensuring consistency, quality and efficiency across the
supply chain. The adoption of The Persimmon Way
streamlines the build process, maintaining high
standards and operational efficiency.
Sales and customer care
Our significant investment in dedicated in-house sales
and customer care teams for each of our brands has
resulted in consistently exceptional service and strong
customer recommendation rates. In addition, through
the launch of innovative products and incentives we
are driving our sales rates.
84,879
plots owned or controlled, with
over 77k
further potential plots in strategic land bank
12,815
plots achieved planning in 2025
3%
growth in outlets
93.5%
of our customers would recommend
ustoafriend
Persimmon Plc Annual Report 2025 – 09Financial statementsGovernance Other informationStrategic report
Delivering quality at scale
Tileworks, the Group’s own concrete roof tile
manufacturing facility, produces tiles solely for
theGroup. During the year, Tileworks supplied
c.12million tiles to 282 sites across the Group,
54%more tiles than in 2025. To meet increasing
demand for tiles across the Group we are planning
tointroduceathird shift in 2026.
Group’s tile usage
89%
Vertical integration
OPPORTUNITY
THROUGH VERTICAL
INTEGRATION
Our vertical integration provides security of
supply and quality of key materials at efficient
cost. This is supported by Group and local
buying teams, which secure the best deals
onother material requirements.
Through our vertically integrated capabilities, we are investing in
innovation and technology to extend our low-cost strengths and
enhance our five-star capabilities to enable as many people as
possible to buy the homes we build.
This gives us a strong platform to support our growth ambitions, through
greater use of off-site manufacture providing increased build speed
and efficiency while reducing our exposure to build cost inflation.
Disposal of FibreNest
In August, we sold FibreNest, our non-core broadband
service, to BUUK Infrastructure, allowing us to use the proceeds
to invest further in our growth strategy as set out in March
2025 and eliminating further investment inFibreNest. Under
BUUK’s ownership, FibreNest will offer improved choice for
customers, with access to upto 18 internet service providers.
Net cash receipt
£68m
Securing supply,
ensuringstandards
Brickworks produces concrete bricks and
isentirelyfocused on supplying the Group’s
housebuilding operations. During 2025, Brickworks
supplied c.60 million bricks and block paving to
258sites across the Group. This represented 56%
ofthe Group’s brick usage in the year and a 23%
increase in demand in 2025. The factory has the
capacity to produce c.70 million bricks per year
withextra capacity being added during 2026,
givingus security of supply as volumes recover.
Group’s brick usage
56%
Financial statementsGovernance Other informationStrategic report10 – Persimmon Plc Annual Report 2025
NEW AUTOMATED AND
ROBOTIC TECHNOLOGY
AT SPACE4
During the year we installed new automated and robotic technology at our existing
Space4 facility in Birmingham. The investment means we are able to deliver a more
advanced product more safely, with higher accuracy and consistency and less
wastage. The production line has been custom built for our house types with our 3D
designs fed into the software, which works out how much material is needed with
minimal waste, resulting in a more sustainable way of building. We are the first
developer to install an automated roof truss line with certification achieved in
November 2025, and the first deliveries to site due early in 2026.
Discover more at www.persimmonhomes.com
Driving efficiency
through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. Space4’s MMC system helps us to improve
siteproductivity (cutting seven weeks off build time),
increase build capacity and mitigate construction
industry skills shortages. Space4 supports all of our
brands and supplied c.4,600 timber frame kits and
roof systems to the Group in 2025, up 36% year on
year. Our Space4 factory provides us with the unique
ability to implement, among other initiatives, innovative
‘fabric first’ solutions to enhance the future efficiency
of our homes.
Timber frame kits and roof systems
suppliedtothe Group
c.4,600
Persimmon Plc Annual Report 2025 – 11Financial statementsGovernance Other informationStrategic report
Create sustainable communities
Our Placemaking Framework ensures
thatallourdevelopments create a sense of
placefor our customers and put communities
attheheart of our developments.
New homes delivered
11,905
2,075 delivered to
housing associations
‘Homes for all’
£286,145
Persimmon Homes private average selling price
c.19% lower than the UK national average¹
Investing in communities
c.£2.3bn
over the last five years
Public open spaces
541
acres created²
HBF score
4.30
HBF combined survey score³
Financial performance
Our well-established strategy provides aresilient
balance sheet and high-quality landholdings
from which we have the expertiseto deliver
sustainable returns forallour stakeholders.
Financial strength
£3.61bn
balance sheet net assets
at 31 December 2025
Capital returned to shareholders
£192m
in the year to 31 December 2025
Resilient balance sheet
£117m
net cash at 31 December 2025
Employment
4,605
direct employees at 31 December 2025
Jobs supported
c.96,000
construction and supply chain jobs
2
1. Based on the Persimmon Homes private average selling price
of £286,145 for the year to 31December 2025 compared
with the national average selling price for newly built homes
sourced from the UK House Price Index as calculated by the
Office for National Statistics from data provided by HM
LandRegistry.
2. Estimated using an economic tool kit.
3. National New Homes Survey, run by the Home Builders
Federation, combined build quality and customer service
scorebased on 8-week and 9-month survey responses.
Persimmon performed
very well in 2025,
withearnings growth
underpinned by our
sustained investment
inthe business and
focus on self-help over
the past few years.
Dean Finch
Group Chief Executive
The value we create
Financial statementsGovernance Other informationStrategic report12 – Persimmon Plc Annual Report 2025
Group Chief Executive’s statement
DELIVERING A STRONG
PERFORMANCE
THROUGH STRATEGIC
INVESTMENT AND
SELF-HELP
Persimmon’s performance exceeded
expectations in 2025, with earnings
growth underpinned by our sustained
investment in the business and focus
on self-help over the past few years.
Our strategy is focused on choosing where we build,
what we build and how we build. This strategic focus
drove 12% growth in completions and 13% increase in
underlying profit before tax
1
, supporting cash generation
and improvements in margin and ROCE. Our three
strong, well-positioned and distinct brands all grew
and remain a key differentiator: the core Persimmon
brand is well placed for today’s market, Charles
Church grew strongly as we invested in our premium
offering, and Westbury continues to drive growth in
the partnerships and Build to Rent (‘BTR’) markets.
We increased the number of outlets we operated from,
against industry trends. We sold more homes, with
ex-bulk sales rates up 4% to 0.59 per outlet per week
and we successfully launched innovative products like
New Build Boost and Rezide to help address affordability
challenges for customers. Our current forward order
book is up 6% year on year. Our investment in our
vertical integration benefited delivery in 2025 and will
continue to do so for years to come. Enhanced house
type ranges are meeting customer needs while also
improving build efficiency. The addition of new sites to
our already strong strategic land bank provides us with
an expanding platform for future growth.
Our strategy enables us to build more routes to more
markets to deliver more homes and growing returns.
Our plans for further investment, innovation and self-help
all support our medium-term growth ambitions, driving
further margin improvement and enhanced returns. As
an already growing company at this point of the cycle,
we are well positioned to secure further expansion
when market conditions improve and the Government’s
welcome planning reforms take effect.
During the year, we also made further progress in
building safety remediation and expect the programme
of works to be largely completed in the next two years.
As proudly the first major housebuilder to protect
leaseholders from the cost of building safety remediation,
we have always recognised this action is the right thing
to do as a responsible business. The works’ completion
alongside the continued delivery of our broader growth
strategy paves the way for improved shareholder returns.
Our achievements are only possible thanks to our
exceptional people. I would like to sincerely thank
every member of the Persimmon team for their dedication,
expertise and commitment. I am proud to work alongside
so many industry-leading experts and committed
colleagues. Their efforts and passion are fundamental
to our success, delivering value for shareholders and
helping to build thriving communities across the UK.
Trading performance
Our 2025 results demonstrate the success of the strategy
to position the business for growth, despite a challenging
market backdrop. We delivered 11,905 new homes in
the year (2024: 10,664) and grew our net sales rate
excluding bulk by 4% year on year to 0.59 per outlet
per week (2024: 0.57). We achieved a further 0.11 per
outlet per week contribution from bulk sales (2024: 0.13),
lower than the prior year reflecting the November
Budget’s widely documented effect on the broader
BTR market. Our continued investment in sales and
marketing helped to drive increased customer enquiries
and overall sales figures, with both ahead of the prior
year. Private average selling prices on reservations
remained robust, with incentives controlled at c.4.6%
per gross reservation (2024: c.4.5%).
We are pleased to have achieved an underlying operating
margin
1
of 14.3% (2024: 14.1%). Our vertical integration
and operational efficiencies enabled us to mitigate the
substantial impact of embedded build cost inflation
coming into the year. These unique capabilities have
helped underpin the margin performance and will help
drive further growth.
High-quality land bank and growing outlets
Our land acquisition strategy is founded on disciplined,
targeted assessments to ensure control over our development
pipeline. We carefully select sites aligned with our
growth ambitions, market demand and margin potential.
In 2025 we increased our investment, with net land
spend of £541m, up from £437m in the previous year.
Our improved reputation, including our enhanced
placemaking approach, helped us access more
opportunities, with more promoters and agents working
Our strategy enables us
to build more routes to
more markets to deliver
more homes and
growing returns.
Dean Finch
Group Chief Executive
Persimmon Plc Annual Report 2025 – 13Financial statementsGovernance Other informationStrategic report
positioning by offering innovative shared equity products
to proactively address our customers’ affordability
challenges and make homeownership more accessible
to more people. Alongside our broader sales and
marketing campaigns and disciplined use of tailored
incentives that meet individual customer needs, we
have driven increased interest in our homes. We saw a
21% rise in website visitors, with good interest observed
across all regions in 2025. We will build further on this
progress in 2026, with a new customer website and
marketing platform launched in the first half of the
year. Persimmon is well placed for continued growth.
The relaunch of Charles Church, our premium brand,
has generated real momentum, with completions up
16% in 2025. Customers have embraced our new
house types and enhanced specifications, supporting
the premium pricing Charles Church achieves and
demonstrating the opportunity to drive further growth
in this market segment. Indeed, we closed the year
with 64 Charles Church outlets, up from 48, including
41 dual-branded sites. We achieved both these extra
completions and outlet expansion using our existing
teams and structure, demonstrating the efficiency benefits.
With clear brand distinction, we are expanding into
new regions, actively pursuing both standalone and
dual-branded opportunities. Charles Church is allowing
us to secure land opportunities in new markets we are
unlikely to have otherwise accessed. As well as serving
distinct markets, a dual-branded presence can generate
additional sales for each brand as customers explore
the breadth of homes on offer. Our medium-term target
remains to double Charles Church’s contribution to the
Group and its first bespoke marketing strategy is helping
drive increased interest and enquiries. So far in 2026,
enquiries are up 48% and website visitors are up 127%.
With Charles Church also launching its own new and
enhanced customer website in the coming months,
alongside the marketing platform mentioned above,
we are confident it will continue to drive growth and
enhance returns for the Group.
Our Westbury Partnerships brand is becoming a
trusted partner for institutional investors and registered
providers. Our flexible model lets us match each site to
local demand, whether private homes, affordable
housing or BTR. We have invested in both the homes
we are building, to ensure they efficiently meet the
The Planning and Infrastructure Act passed in December
was a positive step. While it will take time for planning
reforms to take effect, we are proactively shaping our
pipeline, identifying 68 sites for accelerated planning
ofwhich 25 planning applications are expected to
besubmitted by the end of the first quarter. This will
include 300 plots at Dudley, West Midlands and 200
plots at Keynsham, Severn Valley. These sites combined
represent about 13,000 plots to support medium-term
delivery. Following extensive discussions with Government,
we were delighted to see the launch of ‘Phase 2’ of its
‘New Homes Accelerator Programme’. The accelerator
is now more focused on speed, unblocking stalled sites
that can deliver in the short term. We immediately submitted
sites and have identified a longer list of additional
opportunities. We look forward to working closely with
Government to accelerate the opening of new outlets.
Three strong brands providing diversification
Our three-brand strategy – Persimmon Homes, Charles
Church, and Westbury Partnerships – allows us to target
diverse and distinct market segments. This approach
delivered robust growth in 2025, with each brand
delivering more homes than the previous year. Across
all three brands we have invested to enhance the customer
proposition, the quality of the homes we offer and the
efficiency in which we build them. By strengthening
each brand and sharpening their distinct positions in
the market, we have built a platform that not only
supports current performance but also positions us for
sustained progress towards our medium-term ambitions.
Core Persimmon remains our largest brand and the
cornerstone of the Group. In 2025, our outlet network
and sales and marketing initiatives led to a 7% increase
in core Persimmon completions. We continued to invest
in the core Persimmon brand, refining our approach to
placemaking, creating standout developments with
quality street scenes and landscaping. We streamlined
our core product range making them more efficient to
build and harnessing in-house manufacturing capabilities.
By utilising our own bricks, tiles, and timber frames, we
not only enhance supply chain security and accelerate
delivery times but support our margins with estimated
savings of up to £6,000 per plot.
We also invested further in our sales and marketing to
drive customer interest. Core Persimmon is well placed
in the market with private selling prices around 19%
below the market average
3
. We augmented this market
requirements of these customers, and the relationships
to open up and sustain new market opportunities.
The BTR market continues to offer good opportunities
for capital-efficient sales to our institutional customers.
We increased the number of partners we worked with
in 2025 and introduced new BTR house types – drawing
on our knowledge of investors’ requirements – to meet
their needs efficiently. This improved offering and expanded
partner network, led to a 21% increase to 1,758 in the
homes we delivered for our partners (2024: 1,456).
Despite some partners pausing investment decisions
ahead of the Budget, all planned deals completed in
2025. This budget-related pause is reflected in our
current forward order book. Investor interest remains
high, however, and we are working closely with a
number of partners to complete deals shortly. Persimmon’s
national footprint and single-family housing expertise
position us well to capitalise on this market, particularly
where we have larger sites that offer the opportunity of
mixed-tenure development, enabling us to maximise
value and returns.
Completions to housing associations rebounded
strongly in the second half and in total we delivered
2,075 homes for our partners, up 31% on the prior
year (2024: 1,589). Delivery was particularly strong
in the fourth quarter of 2025 and consequently we do
not anticipate this level of growth to be replicated in
2026. Our relationships across the housing association
market remain strong and we are focused to ensure we
meet partner requirements, especially for the forthcoming
Social and Affordable Homes Programme to maximise
future opportunities.
With three distinct brands serving unique customer
segments and market channels, we have built a dynamic
platform to drive our medium-term ambitions. Alongside
our growing outlets we are building more routes to
more markets to deliver more homes and growing returns.
Build quality and customer service
At Persimmon, our commitment to build quality and
customer service is central to our business operations.
During 2025, we delivered a step change in growth,
without compromising on the consistently high standards
we have achieved in recent years. This provides a strong
platform to meet our medium-term targets. By combining
strong growth with a reputation for consistent build
quality and service excellence we will meet customers’
Group Chief Executive’s statement continued
with us. We had some excellent land opportunities in
2025 and as a result secured 16,309 new plots at
strong embedded margins, achieving a replacement
rate of 137%. This underpins our confidence in our
medium-term targets, as this land comes into production
and older land acquired before the spike in build cost
inflation begins to unwind. Overall, our total land
holdings increased to 84,879 plots giving us good
visibility over our future pipeline (2024: 82,084).
Our proactive approach to planning is removing barriers
to consent and securing more approvals, converting our
sustained land investment into a growing number of active
sites. We opened 103 new outlets in the year (2024: 103
outlets) and finished the year with 277 outlets, up 3%,
while the sector reduced outlet numbers by c.2%
2
.
We obtained detailed or reserved matters planning for
12,815 plots in 2025, 108% of our completions for the
year. Examples include at Madgwick Lane, Chichester
and Hull Road, York, where we combined enhanced
placemaking with proactive engagement to navigate
local planning and stakeholder challenges to secure
approvals and outlet openings. These successes are
helping to develop a strong pipeline, with plans for
more than 100 outlet openings in 2026. We expect to
see net growth in outlets this year and remain on track
to meet our target of at least 300 outlets.
Our strategic land portfolio is already a strong asset
for our business, making an important contribution to
our current growth. Over one third of the plots we secured
detailed planning approval for in 2025 came from our
strategic land bank. It is also an important asset to
support our medium-term growth ambitions and we
have therefore invested to strengthen our strategic
landportfolio further. During the year, we acquired
theMidlands-based land promoter Lone Star Land
and have already identified significant new opportunities
amongst their portfolio. We have also invested in
ourin-house strategic land teams across Persimmon,
broadening our reach and influence in the market.
Overall, we added c.10,000 potential plots to our
strategic land bank in 2025 and ended the period
with over 77,000 potential plots up from c.70,000
potential plots, equivalent to 10% growth. Our ability
to choose the right locations and navigate the planning
process is central to our growth strategy.
High-quality land bank and growing outlets
continued
Financial statementsGovernance Other informationStrategic report14 – Persimmon Plc Annual Report 2025
Innovation and vertical integration
Our vertically integrated model has continued to
benefit the business, with increased production at
Brickworks, Tileworks and Space4 to meet the demands
of our expanding business. Further investment across
all three facilities will also play a pivotal role in supporting
our growth ambitions. Our in-house materials are now
the preferred choice throughout the business. This
approach delivers significant advantages in cost,
efficiency and quality, ensuring reliable supply and
consistent high standards, allowing us to deliver
affordable high-quality homes for our customers.
To meet the increasing demand for our next-generation
brick during the year, we implemented a third shift at
the Brickworks facility. Brickworks delivered c.60 million
bricks, 23% more than in 2024, to 258 sites during
2025. With the factory now operating, 24 hours a day
and seven days a week, plans are in place to further
expand capacity in 2026 by introducing an additional
production line, opening in 2027.
Our own tile is now our preferred option for every
region, except where local planning rules require an
alternative product. Demand again grew in 2025, with
c.12 million tiles, 54% more than in 2024, delivered to
282 sites. We anticipate adding a third shift this year,
further enhancing cost efficiency.
The new state-of-the-art automated timber frame line
at our Space4 factory became fully operational in the
second half of 2025 and has improved both the efficiency
of the factory as well as the consistent quality of the
product being delivered to site. We are also the first
developer to install an automated roof truss line. This
truss line gained certification in November 2025 and
began delivery to site in January 2026. The investment
made in the factory reflects the significant growth in
demand for the product. Space4 supplied 3,666 timber
frame products as well as 964 room-in-roof kits, a
36% increase in delivery during 2025. By the end of
2026 all of our regions outside of Scotland (where we
use third-party suppliers), will be taking product from
our Space4 factory. We continue to see the use of
timber frame as key to delivering future growth and to
improving on-site efficiency, by not only shortening
build times but also reducing demand for scarce labour.
We are looking to innovate and further increase our
use of AI, including seeking out new opportunities to
leverage advanced tools for compliance, site management,
and land assessment. By exploring AI-powered insights,
we aim to strengthen decision making and enhance
operational efficiency across our core business areas.
To support this, we have launched a pilot Persimmon
Data & AI Academy to build practical, immediately usable
data and AI capability across the organisation. The
first cohort of colleagues will begin their training in March.
Current trading and outlook
Market conditions have been supportive – including
greater mortgage availability and real wage growth –
which when combined with our increasing outlet base,
has underpinned our growth. We welcome the beneficial
changes to the planning environment that the Government
has introduced, which should support further outlet
growth over time. Our diversified value-positioned
brands and strong platform position us well to meet
increasing demand supported by our sustained
investment in land, continued success in planning,
vertical integration and commitment to quality and
customer service.
In the first nine weeks of this year our net private sales
rate per outlet per week was 0.73, up 9% compared
tothe same period last year (2025: 0.67). The private
average selling price in the order book is up 6%, which
combined with increased reservations has resulted in
a9% increase in our private forward sales position
to£1.25bn as at 1 March compared with a year ago
(2025: £1.15bn). Total forward sales as at 1 March
have increased by 6% to £1.80bn (2025: £1.69bn).
With stable build cost inflation and our unique vertical
integration, we are managing ongoing cost pressures
effectively while investing in further capacity and
innovation. This, together with our investment in land
and plans to open more than 100 outlets in 2026,
positions us well. We are monitoring the impact the
conflict with Iran could have on our markets in 2026.
Within private sales, we have not assumed mortgage
rate reductions or the introduction of any government
demand stimulus, with the most important short-term
factor being any changes to customer sentiment in
response to increased uncertainty. However, sales in the
opening weeks of the year have been strong and our
BTR and partnerships customers have funds mostly in
place for our planned delivery this year. The potential
impact of the current uncertainty on build cost inflation is
not yet known, but we would anticipate limited impact
on the current year due to our existing agreements with
key suppliers and our accelerated production levels
coming into 2026. More widely, our increased banking
facilities provide additional balance sheet strength.
Assuming the conflict with Iran and its impact is short,
we expect to deliver between 12,000 and 12,500
completions in 2026, with underlying operating
profittowards the upper end of current consensus
5
.
Ourinvestment for growth at this point in the cycle
willresult in increased finance costs and therefore
underlying profit before tax is expected to be in line
withcurrent consensus
5
.
The enduring aspiration for home ownership remains
strong and provides the opportunity for growth into
themedium term. Continued strategic investment in the
business and our self-help strategy over recent years
has positioned us well for future expansion. This investment,
along with capital allocation choices as we progress
our building safety remediation work, will enable us
toconvert market opportunities into sustainable growth
in support of our medium-term ambitions to deliver an
underlying operating margin and ROCE of 20% and
increased returns for our shareholders.
Dean Finch
Group Chief Executive
9 March 2026
Footnotes:
1.
Stated before net exceptional charge (2025: £44.9m; 2024: £34.4m),
and goodwill impairment (2025: £3.4m; 2024: £1.6m). Margin
based on new housing revenue (2025: £3.31bn; 2024: £2.86bn).
2. HBF industry data based on 12 months to 31 December 2025.
3. Based on the Persimmon Homes private average selling price of
£286,145 for the year to 31 December 2025 compared with the
national average selling price for newly built homes sourced
from the UK House Price Index as calculated by the Office for
National Statistics from data provided by HM Land Registry.
4. The Group participates in the House Building Federation
(HBF)’s Five Star Scheme. The HBF star ratings are based on
results from the National New Homes Customer Satisfaction
Surveys run by the NHBC. From the 2024/2025 survey year
the HBF has moved to a combined mean score (not percentage
satisfied) for build quality and service after score based on the
8-week and 9-month survey responses. In the first year, a score
of greater than 4.15 is equivalent to five-star status.
5. Company compiled full year 2026 consensus of 12,136
homes, an underlying operating profit range of £486m to
£517m and underlying profit before tax mean of £470m.
aspirations, increase the number investors, landowners
and suppliers who want to partner with us and further
enhance our attractiveness as an employer of choice.
Our combined quality and service HBF score ended the
survey year at 4.30
4
and continues to track at five-star
homebuilder status, reflecting our ongoing focus on the
quality of our customers’ experience. We are
delighted to have maintained our five-star HBF rating,
awarded to us for the fourth year running in March 2025.
Delivering this while growing the business demonstrates
the embedded culture of consistently delivering
high-quality homes. This is further reflected in our
Trustpilot scores, which remain at their ‘Excellent’
rating with 4.6 stars for both Persimmon Homes and
Charles Church (December 2024: Persimmon 4.5 star;
Charles Church 4.4 star).
We also sustained our improvements in build quality,
with reportable items continuing to track at low levels
at 0.29 (2024:0.26). Our increased investment in site
work in progress alongside more accurate and efficient
build programmes has meant we built 22% more homes
on average per week than in the prior year. Our improved
build programmes also ensure a more rigorous alignment
to our key stage inspections process, providing build
quality checks and reducing the need for and costs of
rework. This has been further strengthened by investment
in more Independent Quality Control officers and more
training for our people. These initiatives led to a 310bps
improvement in our NHBC Construction Quality Review
scores to 92.6% (2024: 89.5%), which is a great achievement.
We are continuing to invest in our people, systems and
processes, to drive further progress. The continued roll
out of digitised systems is helping to drive further efficiency
and quality benefits. A materials management system
that will help automate call-offs in line with build
programmes, will help manage cash flow and reduce
lost, stolen and damaged costs. Granular analysis of
our build programme progress, measuring site-level
labour rates and plot-level progress, is allowing a
greater focus on areas for improvement and best
practice sharing to secure further improvements in
ourefficiency. Tools, platforms and processes such
asthese are crucial to us driving the growth necessary
to meet our medium-term targets efficiently.
Persimmon Plc Annual Report 2025 – 15Financial statementsGovernance Other informationStrategic report
Our strategy
Our five key priorities provide the framework
forleveraging our sector-leading land holdings
and strong operational capabilities.
Our land holdings and pipeline of outlets provide us with a strong platform
to deliver disciplined growth, leveraging our operational capabilities.
We continue to focus on what is within our control – growing outlets,
developing our brands and investing in vertical integration. We are
advancing our systems and processes to improve our product for our
customers while building high-quality, safe and sustainable homes.
Strategic progress
NHBC
reportable items
0.29
SAP rating¹
89
average on ourhomes
Embedded in landbank
c.28%
gross margin
1. The average standard assessment procedure (‘SAP’) rating of our new
homes; equivalent to EPC ‘B’ rated.
KEY PRIORITIES
1
Build quality and safety
Progress in 2025
·
Maintained high levels of build quality, reflecting significant
improvements since the introduction of The Persimmon Way
with NHBC Construction Quality Review scores at 92.6%.
·
NHBC Reportable Items maintained at low levels; 0.29 per
inspection in 2025.
·
Expanded training and digital tools for site teams, enhancing
operational efficiency.
·
Continued strong performance in safety reviews and
independent inspections, supporting our mission to deliver
trusted, high-quality homes.
Future focus
·
Advance systems and processes to further improve
productquality.
·
Innovate in modern construction methods and
verticalintegration.
·
Maintain leadership in building safety and sustainability.
Link to principal risks
·
Supply chain disruptions may impact material availability
andbuild schedules.
·
Regulatory changes could require rapid adaptation in safety
and quality standards.
·
Market volatility may affect investment in new technologies.
·
Maintaining consistent quality across expanding operations
remains a challenge.
·
Environmental risks and sustainability goals need
continualfocus.
Read more on pages 73 to 76
2
Customers at the heart
ofourbusiness
Progress in 2025
·
Delivered outstanding customer experience, with HBF five-star
rating for the fourth consecutive year in 2025 and NHBC
customer recommend a friend at 93.5%.
·
Trustpilot scores improved to 4.6 for Persimmon Homes
(2024: 4.5) and 4.6 for Charles Church (2024: 4.4).
·
Enhanced sales schemes and incentives, including New Build
Boost and Rezide.
·
Continued development of all three brands, expanding
customer base and improving digital journey.
Future focus
·
Further enhance customer experience.
·
Strengthen brand presence and marketing initiatives.
·
New website and customer CRM to be launched in 2026.
·
Maintain customer satisfaction ratings.
Link to principal risks
·
Market fluctuations affecting customer demand
andaffordability.
·
Changes in customer expectations and preferences.
·
Maintaining high levels of customer satisfaction.
·
Regulatory changes impacting customer service processes.
Read more on pages 73 to 76
Financial statementsGovernance Other informationStrategic report16 – Persimmon Plc Annual Report 2025
3
Disciplined growth: high-quality
landinvestment
Progress in 2025
·
Strengthened land bank and increased sales outlets,
supporting growth despite mixed market conditions.
·
Average selling price, completions, planning approvals,
andforward order book all up year on year driven by quality
locations and outlet growth.
·
Disciplined investment in land complemented by continued
industry-leading planning success, securing new site openings.
·
Three-brand strategy and marketing investment further
supporting growth, with 11,905 completions in 2025.
Future focus
·
Continue disciplined investment in land and planning to
expand outlet base.
·
Invest in marketing and sales processes to drive growth.
·
Monitor market conditions and adapt strategy to
maintainmomentum.
·
Target expansion to 300 outlets in the next 12–24 months.
Link to principal risks
·
Macroeconomic volatility and interest rate changes may
affectgrowth.
·
Planning system challenges could delay site openings.
·
Competition for land and resources.
·
Climate change impacts could affect land availability and cost.
·
Regulatory changes affecting investment strategy.
Read more on pages 73 to 76
4
Industry-leading
financialperformance
Progress in 2025
·
Operating profit improved, reflecting disciplined cost control
and efficiency gains.
·
Revenue from new housing increased to £3.31bn, 20bps
improvement in underlying housing operating margin.
·
Improved ROCE to 11.7%.
·
Cash flow from operating activities supporting investment,
firesafety remediation and dividends.
Future focus
·
Sustain tight cost controls and efficiency improvements.
·
Enhance vertical integration for greater efficiency and supply
chain security.
·
Explore new opportunities for faster build times and
qualityenhancements.
·
Maintain strong cash flow and financial resilience.
·
Deliver high-quality, affordable homes while securing
industry-leading returns.
Link to principal risks
·
Cost inflation, regulatory changes and new levies impacting
sector-wide profitability.
·
Market volatility affecting sales and profitability.
·
Maintaining financial resilience in uncertain conditions.
Read more on pages 73 to 76
5
Supporting sustainable communities
Progress in 2025
·
Average SAP rating of homes of 89 (‘B’ EPC rating).
·
Placemaking framework delivering high-quality design
andgreen spaces, creating sustainable communities.
·
Invested £484m in local communities, and supported
c.23,500 jobs across the supply chain.
·
Operational waste recycling rate maintained at 98%.
·
Continued progress on legacy building remediation,
withworks completed or started on 77% of developments.
Future focus
·
Continue to improve the energy efficiency of our homes,
andreduce living costs for customers.
·
Deliver our net zero carbon transition plan.
·
Invest in local communities through our community champions
and outreach programmes.
·
Leverage our supply chain engagement to increase
sustainability resilience and innovation.
·
Enhance biodiversity and green infrastructure in
newcommunities.
Link to principal risks
·
Minimise climate risk by reducing carbon emissions
fromourbusiness activities.
·
Supply chain challenges may impact delivery
ofsustainabletechnologies.
·
Maintaining progress on legacy remediation.
Read more on pages 73 to 76
Persimmon Plc Annual Report 2025 – 17Financial statementsGovernance Other informationStrategic report
New housing revenue
£3,312m
+16%
Underlying profit
beforetax
2
£446m
+13%
Underlying new housing
operatingmargin
1
14.3%
+20bps
Forward sales
at 31 December
£1,173m
+2%
Key priorities
1
Build quality and safety
2
Customers at the heart of our business
3
Disciplined growth: high-quality land investment
4
Industry-leading financial performance
5
Supporting sustainable communities
Read more on pages 16 and 17
Key performance indicators
FINANCIAL
Definition
Revenue generated from the legal completion
ofnew homes to our private customers and
housing association partners.
Why we measure it
Strength of housing revenue is an important
measure of the success of our strategy. Our
range of house types and emphasis on quality
homes at a range of price points put us in a
strong position in our markets.
Links to key priorities
2
3
4
Definition
Anticipated revenue for future home sales to
private customers and contracts with housing
associations that have yet to legally complete.
Why we measure it
Forward sales give us an indication of the
level of demand we have for homes going
into future periods. This allows us to ensure we
are controlling work in progress to meet demand
andmaintain strong financial discipline.
Links to key priorities
2
3
4
Definition
Based on operating profit before net exceptional
charge and goodwill impairment (underlying
operating profit) and new housingrevenue.
Why we measure it
We have a strong track record of delivering
industry-leading returns and we monitor our
performance to ensure continued discipline
inour approach.
Links to key priorities
2
3
4
Definition
Stated before net exceptional charge
andgoodwillimpairment.
Why we measure it
Our disciplined land replacement processes,
cost management and efficiency programmes
aim to generate superior returns that provide
a platform for further investment in the Group’s
resources to support our future growth.
Links to key priorities
2
3
4
2023
2024
2022
2021
2,538
2,863
3,696
3,450
Read more on page 22 Read more on page 15 Read more on page 22 Read more on page 23
1,060
1,146
1,040
1,624
14.0
14.1
27. 2
28.0
359
395
1,012
973
2025 3,312 1,173 14.3 446
2023
2024
2022
2021
2025
2023
2024
2022
2021
2025
2023
2024
2022
2021
2025
Financial statementsGovernance Other informationStrategic report18 – Persimmon Plc Annual Report 2025
Net assets per share
1,127p
+3%
Return on average
capitalemployed
3
11.7%
+60bps
Net cash
£117m
-£142m
Free cash generation
£56m
+£16m
Read more on page 24 Read more on page 24 Read more on page 23 Read more on page 23
420
259
862
1,247
10.5
11.1
30.4
35.8
1,070
1,096
1,077
1,136
(173)
373
40
767
Definition
Net cash flow before financing activities.
Why we measure it
We use this to measure balance sheet strength
and liquidity. Ensuring we have an appropriate
capital structure to support the business
through the cycle is keyto our success.
Links to key priorities
2
3
4
Definition
12-month rolling average calculated on
underlying operating profit and total capital
employed. Capital employed is the Group’s
net assets less cash and cash equivalents plus
land creditors.
Why we measure it
Our focus on return on average capital
employed allows us to measure the efficiency
ofour use of capital. We will continue our
disciplined approach to working capital
management to meet market demand.
Links to key priorities
3
4
Definition
Calculated as the total value of the Group’s
assets minus total liabilities divided by the
number of shares in issue.
Why we measure it
Net asset value per share movement is an
indicator of thevalue that we are delivering
for our shareholders. Wehave a good track
record of delivering strong returns for our
shareholders through the cycle.
Links to key priorities
3
4
5
Definition
Cash and cash equivalents, bank overdrafts
andinterest bearing borrowings.
Why we measure it
Ensuring we have an appropriate capital
structure to support the business through the
cycle is key to our success.
Links to key priorities
2
3
4
56 117 11. 7 1,127
2023
2024
2022
2021
2025
2023
2024
2022
2021
2025
2023
2024
2022
2021
2025
2023
2022
2021
2024
2025
Persimmon Plc Annual Report 2025 – 19Financial statementsGovernance Other informationStrategic report
Number of work-related
incidents (’RIDDORs’)
3.8
+1.6%
Quality
91.4%
-210bps
Customer
satisfaction score
93.5%
-250bps
Land holdings
84,879
+3%
Key priorities
1
Build quality and safety
2
Customers at the heart of our business
3
Disciplined growth: high-quality land investment
4
Industry-leading financial performance
5
Supporting sustainable communities
Read more on pages 16 and 17
Key performance indicators continued
NON-FINANCIAL
Definition
The number of plots we have either owned
orunder control to support our future
homedelivery.
Why we measure it
The Group’s high-quality land holdings with
industry-leading margins are a key strength of
the business. By monitoring them we can track
our future pipeline of work.
Links to key priorities
3
4
5
Definition
Based on the number of customers who would
recommend their builder to a friend in the
National New Homes Survey, run by the HBF.
Why we measure it
We put our customers at the heart of our
business and ensuring they are satisfied is key
to the Group’s success. We were delighted to
be awarded HBF five-star builder status again
in 2025. From 2026, we will report on the
HBF’s combined score which is the new measure
for benchmarking housebuilder star ratings.
Links to key priorities
1
2
4
5
Definition
Based on how satisfied customers are with
thequality of their new home in the National
New Homes Survey, run by the HBF.
Why we measure it
Our ethos is to ‘build right, first time, every
time’. Monitoring our performance is key to
building consistently high-quality homes for
our customers.
Links to key priorities
1
2
4
5
Definition
Reportable accidents, RIDDORs, reported
per 1,000 workers in our housebuilding
operations (including, where relevant,
thosereported by our subcontractors).
Why we measure it
The safety of our employees, subcontractors
and customers is the number one priority for
ourbusiness.
Links to key priorities
1
2
4
5
82,235
82,084
87,19 0
88,043
Read more on pages 14, 16, 23 and 24 Read more on pages 15, 16 and 52 Read more on pages 15 and 16 Read more on pages 45 to 47
2023
2024
2022
2021
92.9
96.0
90.6
92.0
89.6
93.5
86.6
87.9
2.8
2.2
3.6
4.0
84,879 2025 93.5 91.4 3.8
2023
2024
2022
2021
2025
2023
2024
2022
2021
2025
2023
2024
2022
2021
2025
Financial statementsGovernance Other informationStrategic report20 – Persimmon Plc Annual Report 2025
Absolute Scope 1 and 2
carbon emissions (tonnes
CO
2
e market based)
16,938
Read more on pages 30 to 39
21,973
20,306
25,017
26,447
Definition
The amount of carbon we emit from using
energy in our own activities including offices,
manufacturing businesses, construction sites and
business travel. Energy sources include diesel,
petrol, LPG, kerosene, gas and electricity.
Why we measure it
We are committed to reducing our carbon
emissions, ensuring we meet our approved
science-based targets, and contribute to
achieving the Government’s long-term net
zero carbon goal.
Links to key priorities
2
4
5
2023
2024
2022
2021
2025 16,938
1. Based on new housing revenue
(2025:£3,312.0m; 2024: £2,863.3m)
and underlying operating profit
(2025:£472.1m; 2024: £405.2m)
stated before net exceptional charge
(2025: £44.9m; 2024: £34.4m) and
goodwill impairment (2025: £3.4m;
2024: £1.6m).
2. Stated before net exceptional charge
(2025: £44.9m; 2024: £34.4m) and
goodwill impairment (2025: £3.4m;
2024: £1.6m). Profit before tax after
net exceptional charge and goodwill
impairment is £397.3m (2024: £359.1m).
3. 12-month rolling average calculated
on underlying operating profit and
total capital employed (including land
creditors). Underlying operating profit
is stated before net exceptional charge
(2025: £44.9m; 2024: £34.4m) and
goodwill impairment (2025: £3.4m;
2024: £1.6m).
NEW BUILD BOOST
HELPSCOUPLE BUY
THEIRFIRST HOME
Katy and Chris Marshall’s journey illustrates the transformative impact of Persimmon’s
New Build Boost product. After years of instability and 14 moves due to rising rents and
insecure tenancies, the couple discovered Persimmon’s scheme while searching for a new
build home. The interest-free equity loan enabled them to purchase a two-bedroom
house in Selsey with a manageable deposit and fixed payments, providing long-term
security. Persimmon’s innovative product not only helped the Marshalls escape the rental
cycle, but also offered peace of mind and a stable future for their family, demonstrating
the real-world value of tailored homebuying solutions.
Persimmon Plc Annual Report 2025 – 21Financial statementsGovernance Other informationStrategic report
Financial review
The Group generated total revenue
1
of £3.75bn (2024: £3.20bn), with
new housing revenue up 16% at
£3.31bn (2024: £2.86bn).
In total, the Group delivered 11,905 new homes in
2025, up 12% on the prior year (2024: 10,664), at
ablended average selling price up 4% at £278,203
(2024: £268,499).
Of these, 9,830 homes were delivered to private
customers, an increase of 8% on last year (2024: 9,075)
and representing 83% of total completions (2024: 85%).
The private average selling price of £301,392 was up
5% on the prior year (2024:£287,162) reflecting an
increase in delivery from Charles Church and the strength
of the market in some of our regions, partially offset by
an increase in the number of plots sold to investors.
During the year, we completed the sale of 1,758
homes to investors, up 21% from the 1,456 delivered
last year. Our ongoing focus on strengthening strategic
partnerships has contributed to growth in this key
market segment. As some of our partners delayed
investment decisions ahead of the November Budget,
ourforward BTR order book was reduced coming
into2026. Weremain confident that investor sales
willcontinue tobe an important market for Persimmon.
The Group delivered 2,075 new homes to housing
associations, up 31% on the prior year with particularly
strong delivery in the fourth quarter (2024: 1,589).
Asa result, we would expect a similar number of
homes to be delivered in 2026 with over 80% of
2026delivery already secured. The average selling
price of £168,347, was 4% higher than the prior year
(2024:£161,916), reflecting the geographic mix and
size of properties.
The Group’s performance continues to be supported
by our high-quality land portfolio, with land cost
recoveries
2
of 11.5% of new housing revenue for the
year (2024: 11.9%). This decrease in the year reflects
the mix of completions.
The Group’s underlying gross profit
3
for the year
increased by 13% to £656.3m (2024: £582.4m).
TheGroup’s reported gross profit for the year is
£616.5m (2024: £580.4m) after exceptional items,
asdescribed below. Our underlying gross margin
3
reduced to 19.8% (2024: 20.3%), partly reflecting
thehigher proportion of BTR and housing association
completions within the year and the impact of embedded
build cost inflation.
The Group has maintained its focus on cost control
andwith the benefit of greater volume delivery has
been able to increase its operating margin in the year.
Underlying operating profit
4
for the Group increased
17% to £472.1m (2024:£405.2m), generating an
underlying operating margin
4
of 14.3% (2024: 14.1%).
On a reported basis, operating profit increased 15%
to £423.8m (2024: £369.2m) including the net
exceptional charge described below.
In August we sold FibreNest, our non-core broadband
service, to BUUK Infrastructure. This allowed us to use
the proceeds to invest further in our growth strategy
asset out in March 2025 and eliminates the requirement
for further investment in FibreNest. Under BUUK’s
ownership, FibreNest will offer improved choice
forcustomers, with access to up to 18 internet
serviceproviders.
The Group has reported a net exceptional charge
of£44.9m (2024: £34.4m). This comprises a net
exceptional charge within gross profit of £39.8m
(2024: £2.0m), relating to anticipated costs for the
removal of combustible cladding and other building
safety remediation works (see below). Additionally,
afurther exceptional charge of £5.1m has been
recognised within operating profit, reflecting Persimmon’s
£15.2m voluntary contribution to the Government’s
affordable homes programme following the closure
ofthe CMA investigation (see below) and associated
fees of £1.0m, partially offset by the £11.1m profit
realised from the disposal of FibreNest. These items
are classified as exceptional due to their non-recurring
nature. Further details can be found in note 6 to the
financial statements.
DISCIPLINED
INVESTMENT
DRIVINGGROWTH
The Group’s Capital
Allocation Policy is
toinvest in future
growth through
disciplined expansion
of our land portfolio
while maintaining
astrong balance
sheetand delivering
sustainable returns
toshareholders.
Andrew Duxbury
Chief Financial Officer
Financial statementsGovernance Other informationStrategic report22 – Persimmon Plc Annual Report 2025
Net finance cost for the year was £26.5m (2024: £10.1m)
being a result of lower average cash balances, increased
utilisation of our £700m Revolving Credit Facility,
£12.0m of imputed interest payable on land creditors
(2024: £3.8m) and £7.0m of imputed interest payable
on the legacy buildings provision (2024: £7.4m).
The Group generated an underlying profit before tax
4
of £445.6m (2024: £395.1m), and a reported profit
before tax of £397.3m (2024: £359.1m).
The Group has an overall tax charge of £111.6m for
the year (2024: £92.0m) and an effective tax rate of
28.1% (2024: 25.6%), marginally lower than the standard
rate of 29% (including both corporation tax and the
Residential Property Developers Tax) (2024: 29.0%).
Underlying basic earnings per share
4
for the year was
100.7p, 9% higher than the prior year (2024: 92.1p).
Reported basic earnings per share was 7% higher
thanlast year at 89.3p (2024: 83.6p).
Underlying return on average capital employed (‘ROCE’)
including land creditors was 11.7%
5
, 60bps higher
than the prior year (2024: 11.1%), reflecting the increase
in underlying operating profit
4
in the year. ROCE excluding
land creditors was 13.1%
5
compared with 12.2% at
31December 2024. On a statutory basis, ROCE
including land creditors was 10.5%
5
(2024: 10.1%).
Building safety
The Group has committed to make progress on its
building safety remediation programme, as well as
investing in future building quality. Our proactive work
has been recognised through our status as a Building
aSafer Future Charter Champion.
Across our Legacy Building Programme, we continue
our proactive approach of working with management
companies, factors (in Scotland) and their agents to
carry out necessary remediation as soon as possible.
Of the total of 87 developments in our programme,
43(49%) have already had any necessary works
completed. Of the remaining 44 developments,
24currently have work on site and 20 are at varying
stages of pre-tender, live tender, progressing to contract
or agreed contract and works starting very soon.
Strong balance sheet
andlow leverage
Maintain a strong balance sheet
through the cycle and prioritise
building remediation works
Investment in growth
andcapabilities
Investment in new and existing
sitesto continue outlet growth
M&Aonly where it meets strict
financial criteria
Sustainable
ordinarydividend
Well covered by profits
overthecycle
Return any excess capital
to shareholders
Special dividend
orsharebuybacks
Capital allocation
Aswe actively progress the programme, the number
ofdevelopments at or before the tender stage has
reduced to eight. With over 90% of developments fully
tendered, this gives some reassurance over our future
cost estimates. The number of developments on site
orcompleted has increased 10% to 67. For further
information please see note 23.
During the year, the provision has been increased by
£39.8m, following a review of the projected costs to
complete rectification work, along with the identification
of four additional developments requiring remediation,
offset by works assumed by, or recoveries secured
from, historical subcontractors. We continue to pursue
cost recoveries from third parties. Due to the non-recurring
nature of these changes, they have been disclosed as
exceptional items to support the understanding of
financial performance and improve the comparability
between reporting periods.
We utilised £56.1m of the provision in the year, with
total aggregate expenditure now over £175m, whilst
afurther £7.0m of imputed interest was charged to the
Income Statement through finance costs. The remaining
provision at 31 December 2025 was £226.0m, a
£9.3m reduction on the position as at 31 December 2024.
The next 18 to 24 months are projected to be the peak
period of cash expenditure on this programme.
Competition and Markets Authority (‘CMA’)
On 9 July 2025, the CMA announced its intention to
close its investigation on whether Persimmon, along
with six other UK housebuilders, had exchanged
competitively sensitive information, accepting voluntary
commitments from all parties. The CMA has not made
any findings that Persimmon Plc and its group companies
has infringed UK competition law and the voluntary
commitments offered do not constitute an admission
ofany wrongdoing. As part of these commitments,
Persimmon made an ex-gratia financial contribution
of£15.2m to the Government’s Affordable Homes
Programme in January 2026. This has been
accountedfor in the period as an exceptional cost.
Balance sheet
Total equity increased by £0.1bn to £3.61bn at
31December 2025 (2024: £3.51bn). This is after
returning £192.1m of capital to shareholders through
afinal dividend of 40p per share in respect of the
2024 financial year and an interim dividend of 20p
per share for the 2025 financial year. Retained earnings
increased to £3.04bn (2024: £2.94bn). Reported net
assets per share of 1,127p represents a 3% increase
from 1,096p at 31 December 2024.
Land holdings
A core strength of the business remains its disciplined
approach to land replacement. Over the last three
years we have maintained our selective land purchase
strategy, positioning us well for the future as we look
togrow our outlet position. At 31 December 2025, we
had 277 outlets, 3% higher than 31 December 2024,
and remain on track to increase outlets in 2026 as we
position the business for further growth.
At 31 December 2025, the carrying value of the
Group’s land assets increased by 14% to £2.59bn
(2024: £2.27bn), reflecting continued investment in
the Group’s future and our ongoing focus on converting
owned land with outline planning permissions to
implementable consents. The Group’s land cost
recoveries for the year of 11.5%
2
of new housing
revenue is 40bps lower than the prior year, reflecting
the mix of completions in the year, and remains an
excellent position.
During the year, the Group brought 16,309 plots
intoits owned and under control land holdings
across71 locations throughout the country, equivalent
to a replacement rate of 137%. 1,639 plots were
converted from our strategic land portfolio, which
continues to be a strength for the business. In August
2025, we bought a Midlands-based land promoter,
Lone Star Land, further strengthening our strategic land
capabilities. Further detail is provided in note 7.
At the end of the year, the Group had owned and
under control land holdings of 84,879 (2024: 82,084)
representing approximately seven years of forward
supply at 2025 volumes. Owned plots totalled 70,236
(2024: 69,189) of which 40,215 have a detailed
implementable planning consent, providing excellent
visibility (2024: 40,430). The Group’s owned land
holdings represent approximately six years of forward
supply at 2025 volumes, with an overall pro-forma site
gross margin
6
of c.28% (2024: c.29%), slightly lower
year on year, partly due to fewer conversions from
high-margin strategic land in the period. The land cost
to revenue ratio within the owned land bank of 12.8%
7
(2024: 11.9%) reflects both the lower conversion from
strategic land, the purchase of more serviced land in
the period, where infrastructure costs (reflected in
build costs) are expected to be lower and weighting
towards land purchases in the south.
Persimmon Plc Annual Report 2025 – 23Financial statementsGovernance Other informationStrategic report
Land holdings continued
We have made some excellent additions to our owned
land bank during the period, and together with our
controlled and strategic land pipeline, we remain
confident in our ability to deliver our medium-term
growth targets.
In addition to its owned plots, the Group controls
14,643 plots (2024: 12,895) through exchanged
contracts. These contracts to acquire the site will be
completed once all outstanding unfulfilled planning
conditions have been satisfied. Cash invested in these
under control plots is limited to deposits paid on the
exchange of contracts and fees associated with
progressing the sites through the planning system.
During the year, the Group secured detailed or reserved
matters planning for 12,815 plots (2024: 13,064).
The Group incurred net land spend of £541.3m
during2025 (2024: £437.0m), including £211.2m of
payments in satisfaction of deferred land commitments
(2024: £210.6m).
In 2025, the Group acquired interests in a further c.10,000
potential plots of strategic land opportunities resulting
in a total of over 77,000 plots at 31 December 2025
(2024: c.70,000 plots). This will provide a long-term
supply of forward plots for future development by the Group.
Work in progress
At 31 December 2025, the Group had work in progress
of 4,114 equivalent units of new homes under construction,
12% higher than the position we entered the year with
(2024: 3,684) as we position the business for further
growth in 2026. On average, overall weekly build
rates tracked 22% higher in the year, with an average
of 245 equivalent units of build per week, compared
to 201 per week in 2024.
Our work in progress investment at 31 December 2025
of £1.63bn was up 15% on the prior year (2024: £1.43bn).
This reflects the anticipated growth in completions and
investment in expanding our outlet base in 2026, along
with accelerating our build programmes to drive continued
high standards of quality and customer service.
As at 31 December 2025, we owned 894 part
exchange properties (2024: 739 properties) at a
value of £198.8m (2024:£154.4m). Part exchange
continues to be a key sales incentive for our customers,
and we are progressing sales of part exchange
properties promptly at around expected values.
Cash generation and liquidity
During the year, we continued our targeted investment
into the business to enhance quality, efficiency and
returns as we build a more sustainable business
andposition for further growth. Our long-standing
financial discipline will continue to maintain our
robustbalance sheet.
At 31 December 2025, the Group had a cash balance
of £117.0m (2024: £258.6m) with land creditors of
£623.4m (2024:£423.2m), of which c.£355m are
expected to be settled during 2026. This increase in
land creditors is in line with our strategy to increase
our outlet base as we continue to target reaching
over300 outlets.
The Group generated £487.9m of cash from operating
activities in the year (2024: £419.6m), before investing
£349.4m in working capital (including a £590.1m
increase in inventories offset by a £321.4m increase
intrade and other payables), the net receipt of £68.1m
in relation to the disposal of FibreNest and returning
£192.1m of capital to shareholders through dividend
payments (2024: £191.8m).
The Group’s shared equity loans have generated
£4.0m of cash in the year (2024: £4.6m). The
carrying value of these outstanding shared equity
loans, reported as ‘shared equity loan receivables’,
is£25.7m at 31 December 2025 (2024: £29.0m).
On 26 January 2026, the Group agreed an increase
to its secured funding arrangements with the syndicate
of partnership banks.The Group’s existing syndicated
facility of £700m committed to July 2030 was expanded
to £750m and an additional fixed term facility of
£250m was agreed to 31 January 2028, giving
anincreased total secured funding level of £1bn,
supporting the continued investment programme over
the coming years. The extra facilities will allow the
Group to prudently manage growth at this stage
ofthecycle, while maintaining ample headroom.
The Group’s defined benefit pension asset is in line
with last year at £130.7m at 31 December 2025
(2024: £130.7m).
Capital allocation
The Group is creating value by investing in growth.
TheGroup’s Capital Allocation Policy is to invest in
future growth through disciplined expansion of our
land portfolio while maintaining a strong balance
sheet and delivering sustainable returns to shareholders.
For 2025, the Board proposes a final dividend
of 40p per share to be paid on 10 July 2026 to
shareholders on the register on 19 June 2026,
following shareholder approval at the AGM. This
dividend is in addition to the interim dividend of 20p
per share paid on 7 November 2025 to shareholders
on the register on 17 October 2025 to give a total
dividend of 60p per share in respect of the financial
year 2025 (2024: 60p).
As we deliver on our medium-term growth ambitions,
coupled with further progress on our Building Safety
Remediation Programme, we anticipate increasing
ourreturns to shareholders.
2026 outlook
The strong desire for home ownership, together with
our strategic investments, positions us well to deliver
sustainable growth and shareholder returns.
Our current private forward sales position stands at
£1.25bn, a 9% increase year on year (2024: £1.15bn).
With this progress in our forward order book, we are
targeting 12,000-12,500 completions for 2026 assuming
stable market conditions. We are conscious of geo-political
uncertainty and are monitoring the impact this could
have on our markets. Benefiting from our improved
operational capabilities and disciplined investment in
our land holdings, we aim to achieve further growth in
profit and returns. We expect underlying operating
profit to be towards the upper end of the current market
consensus range
8
and, with increased financing costs
reflecting our investment for growth, underlying profit
before tax is expected to be in line with current market
expectations
8
.
The next two years are expected to see peak
expenditure on our building safety remediation
programme, with approximately £100m anticipated
tobe spent in 2026. Our net cash position at the end
of 2026 is currently forecast to be between £100m
netdebt and £100m net cash, reflecting our ongoing
investment for growth.
Andrew Duxbury
Chief Financial Officer
9 March 2026
1. The Group’s total revenues include the fair value of
consideration received or receivable on the sale of part
exchange properties, planning promotion contracts and
income from the provision of broadband internet services.
Newhousing revenues are the revenues generated on the
saleof newly built residential properties only.
2. Land cost value for the plot divided by the revenue of the new
home sold.
3. Underlying gross profit stated before a net exceptional charge
of £39.8m (2024: £2.0m) and margin based on new housing
revenue (2025: £3.31bn; 2024: £2.86bn).
4. Underlying measures
stated before a net exceptional charge of
£44.9m (2024: £34.4m),
and goodwill impairment (2025:
£3.4m; 2024: £1.6m) and margin based on new housing
revenue (2025: £3.31bn; 2024: £2.86bn).
5. 12-month rolling ROCE calculated on underlying operating
profit and total capital employed. Capital employed being the
Group’s net assets less cash and cash equivalents plus land
creditors. ROCE excluding land creditors is calculated on
capital employed being the Group’s net assets less cash and
cash equivalents excluding land creditors. Statutory ROCE
including land creditors is calculated on reported operating
profit and capital employed with capital employed being the
Group’s net assets less cash and cash equivalents plus land creditors.
6. Estimated weighted average site gross margin based on
assumed revenues and costs at 31 December 2025 and
normalised output levels.
7. Land cost value for the plot divided by the anticipated future
revenue of the new home sold.
8. Company compiled full year 2026 consensus of 12,136
homes, an underlying operating profit range of £486m to
£517m and underlying profit before tax mean of £470m.
Financial review continued
Financial statementsGovernance Other informationStrategic report24 – Persimmon Plc Annual Report 2025
Our people
SUPPORTING
OURWORKFORCE
At Persimmon, our people remain the cornerstone of our success.
Their dedication, talent and hard work drive our commitment to
delivering high-quality homes and exceptional customer service.
As we look back on 2025, we are proud to have built on the
strong foundations laid in previous years, further strengthening
our culture of pride, inclusion and opportunity.
Our approach to people management is structured around the full employee lifecycle – attraction,
onboarding, development, reward, progression, retention and exit – ensuring a consistent, connected
experience that reflects our commitment to safety, wellbeing, clarity and opportunity at every stage.
Employee
Lifecycle
1: Attraction and
recruitment
7: Exit
2: Onboarding
6: Culture and
retention
3: Learning and
development
5: Progression and
performance
4: Reward and
recognition
Culture and talent
Our unique business culture continues to foster pride
and happiness among our talented employees. This
culture, combined with our people, is a key driver of
our industry-leading performance. In 2025, we continued
to attract, retain and develop top talent through
comprehensive training programmes, robust succession
planning and a deep commitment to diversity and inclusion.
Employee survey results reinforce this strength,
with89% of colleagues saying they know what they
need to do to be successful in their roles, and 87%
understanding how their work contributes to Persimmon’s
goals. This clarity and sense of purpose are fundamental
to our culture.
This year, we launched a mentoring scheme connecting
over 100 colleagues – including Executive members
– with mentors and mentees, fostering growth and
knowledge sharing across the business. Our refreshed
Performance Development Review model has enabled
more meaningful career conversations, while targeted
secondments and stretch projects, such as our AI working
group, have opened new pathways for development.
Chantelle Muir’s achievement as the first female
bricklayer to reach the SkillsBuild national final
andachieving a strong second place is a powerful
testament to the quality and impact of Persimmon’s
apprenticeship programme. Her success reflects the
effectiveness of our training, mentoring and on-site
development, and highlights our commitment to
developing skilled, confident professionals who
areshaping the future of the industry.
Our Advanced Management Programme and Leadership
Development Programme continue to deliver results,
with 46% of participants promoted, including female
leaders in senior roles. We are proud to see our
internal talent stepping into key positions, supported
by structured learning and leadership opportunities.
Our Management Development Training Programme
(‘MDP’) was shortlisted for the Housebuilder Awards
2025 in the ‘Best Training Initiative’ category.
In addition, employees report strong confidence
inleadership, with 79% expressing favourable
viewsof local leadership – 19 points above the
UKConstruction and Heavy Industry benchmark.
Chantelle Muir – Bricklaying Apprentice – West Scotland.
Persimmon Plc Annual Report 2025 – 25Financial statementsGovernance Other informationStrategic report
Our people continued
Training and development
We continue to invest in the growth and development
of our people across all areas of the business. In
2025, our in-house training team delivered a wide
range of programmes, including digital learning,
wellbeing initiatives and customer-focused development.
Ongoing digitisation of our training offer has
enhanced the learning experience, providing flexible,
role-relevant access to high-quality eLearning that
supports performance and long-term development.
During the year, we launched the Customer
CareAcademy, a structured programme for
customer careadvisors and managers, incorporating
an ICS accredited qualification and a Service
Improvement Plan to ensure learning is applied directly
to service delivery.
We also introduced our Trainee Assistant Site
Manager (‘TASM’) Programme, providing a
practical, experience-based pathway for experienced
site operatives to progress into site management roles
through targeted training and mentoring.
Number of training days delivered
c.15,900
Number of Mental Health First Aiders
299
(2024: 270)
98%
of our staff would recommend
Persimmon training to colleagues
46%
of staff undertaking our AMP andLDPmanagement
programmes havebeenpromoted
TWO AWARDS
FOR TARGET ZERO
Our Target Zero campaign to spread awareness of workplace safety has been recognised
attheInternational Brilliance Awards.
The campaign, produced in partnership with agency Gallagher Communication, won
theEmployee Engagement category in the internal communications section of the awards.
Andwecame second in the Internal Communications Campaign category.
Target Zero, which means ‘zero incidents and zero regrets’, launched in 2024. Phase two of the
campaign kicked off during Safety Week in July 2025 and included an ‘On the Sidelines’ video
series with former rugby players Nathan Hines and Stuart Grimes, Managing Director, North
East. The campaign continued through the autumn with monthly ‘Train yourself to THINK’ toolbox
talks, delivered to site operatives by site management, and a focus on telehandler activities.
Abigail Bainbridge, Group Health, Safety & Environment (’HS&E’) Director, said: “Target Zero
isour commitment to safety excellence and highlights the need to report all incidents, however
minor they may seem. Due to the campaign, reporting has gone up 70%. This gives us a more
accurate view of health and safety on our sites – and a better understanding of the incidents that
are occurring and why, so that we can continue to make efforts to reduce them. We won’t rest
until we eliminate all workplace incidents.”
Charlotte Ling, Group Head of Internal Communications, added: “Target Zero is a great example
of how our business can use communications in an engaging and impactful way to make a real
difference to site colleagues. Working with HS&E, we will continue to build on what we’ve
achieved so far – and you can expect to see more on Target Zero later this year.”
Financial statementsGovernance Other informationStrategic report26 – Persimmon Plc Annual Report 2025
Our overall
engagementscore
70%
7 vs. benchmark
I would
recommend
Persimmon as
agreat place
towork
8 vs. benchmark
5 vs. 2024
5 vs. 2023
79%
I am proud
towork for
Persimmon
1 vs. benchmark
3 vs. 2024
3 vs. 2023
76%
Key
Positive Neutral Negative
Our apprenticeship and graduate programmes remain
a cornerstone of our workforce strategy. In 2025, we
welcomed our fifth cohort of graduate trainees, with
40% of trainees female. During 2025, we supported
345 apprentices across theGroup, working in close
partnership with colleges, professional bodies and key
supply chain partners. Ourapprenticeship levy
utilisation exceeded 80%, demonstrating our continued
commitment to investing infuture ready talent and
building a sustainable skills pipeline for the business.
Feedback from our employee survey shows
clearrecognition of this commitment, with 76% of
colleaguesreporting they receive useful feedback
onperformance and 77% feeling part of a team
– demonstrating the positive impact of structured
learning and capability development.
Diversity and inclusion
We are committed to fostering an environment where
everyone feels valued and respected. This year, female
representation increased to 31%, with 34% of senior
roles now held by women. Ethnic minority representation
rose to 5%, reflecting our focused recruitment and
development efforts.
New network groups, including the Carers’ Network,
and initiatives like ‘Persimmon People’ and our Religion
and Culture Group, are helping to build a culture
ofbelonging.
Our bespoke mentoring intervention is providing support
for up-and-coming female and ethnic minority colleagues,
while enhanced data tracking and disability support
programmes ensure we continue to make progress on
our diversity and inclusion goals.
Employee voice from the Engagement Survey reinforces
that colleagues see Persimmon as ‘a company undergoing
positive transformation’, with particular appreciation
for improvements in communication, culture and
people-focused initiatives.
Employee engagement
andwellbeing
We provide an exceptional employee experience.
In2025, our engagement score reached 70%, 7%
ahead of the external benchmark, and 79% of colleagues
would recommend Persimmon as a great place to work.
Labour turnover reduced from 24% in 2024 to 23% in
2025, and 84% of colleagues agree Persimmon is
positioned to succeed over the next three years.
The wellbeing of our colleagues is a top priority.
Welaunched a Group Wellbeing Hub and a Wellbeing
Charter, providing a single front door to support and
resources. Over 180 Mental Health First Aiders have
been trained, and our new Absence Policy has
contributed to an 18% reduction in sickness absence.
Colleagues highlighted Persimmon’s focus on
wellbeing as a major strength, with 84% saying their
manager genuinely cares about their wellbeing and
commentary emphasising the Company’s focus on
employee wellbeing.
Wellbeing training for managers and role-based
support are now embedded across the business.
Recognition and rewards
Recognising and rewarding our people is central
toour culture. In 2025, we introduced new sales
incentive schemes, a Buy Holiday Scheme and a
Wellbeing Charter, alongside long service awards
and the launch of our Carers’ Network. Our intranet
now features more people stories, celebrating
achievements and promoting Persimmon as an
employer of choice. We have also enhanced our
careers landing page and developed targeted
campaigns to attract diverse talent.
Looking ahead
As we move into 2026, we remain focused on expanding
talent and succession planning, enhancing diversity
and inclusion, embedding wellbeing initiatives and
driving employee engagement and rewards. We will
be expanding our academy offering with the launch
ofour Sales Academy and the development of
standardised training programmes for our Technical
and Commercial teams. We will also introduce
initiatives that strengthen our own apprenticeship
provision while providing structured support for
apprenticeships across our supply chain partners.
By investing in our people and fostering a culture of
opportunity and belonging, we are building a resilient,
inclusive and high-performing workforce ready to
support Persimmon’s long-term growth and success.
We are genuinely
guided by a strong
commitment to doing
the right thing — even
when it’s difficult. At
our core, we value
asking tough questions
and embracing
complexity, all within
an environment that
remains deeply
people-focused.
Employee Engagement Survey
Persimmon Plc Annual Report 2025 – 27Financial statementsGovernance Other informationStrategic report
Sustainability
SUSTAINABILITY STRATEGY
Our three sustainability pillars
enable us to focus on driving our
strategic performance and are
aligned with the Group’s key priorities,
ensuring sustainability is a core part
of the Group’s operations.
BUILDING FOR
TOMORROW
We will reduce our environmental
impacts and achieve net zero
carbon reductions aligned with
science-based targets in both
the near and long term.
By minimising our environmental impact, we
can also benefit from increased efficiencies
throughout our supply chain and operations.
We focus on not only operational environmental
impact, but also the benefit that improved
sustainability can bring to our customers
through their homes and communities.
Key priorities
·
We are committed to reducing carbon
emissions from our operations and across
our value chain and have developed our
netzero pathway to 2045.
·
We aim to reduce absolute operational
carbon emissions by 46% by 2030.
·
We aim to achieve zero carbon ready
homes in use by 2030.
·
We aim to have 50% of our homes built
using timber frames from our off-site
manufacturing facilities in the medium term.
TRANSFORMING
COMMUNITIES
We will positively transform the
communities directly connected
to Persimmon’s activities.
Creating sustainable places for our customers
isat the heart of what we do. Our Placemaking
Framework guides all our developments and
ensures we create lasting, sustainable communities
with great design, the right house types and
valued green open spaces.
We make a positive local impact when building
new homes, meeting stakeholder expectations
and engaging with residents.
Key priorities
·
We are committed to maintaining an HBF
five-star rating for our customer satisfaction.
·
We are committed to delivering high-quality
homes. Our NHBC Reportable Items was
0.29 for the year ended 31 December 2025.
·
We are committed to delivering at least
a10% Biodiversity Net Gain on all
newdevelopments.
·
We have signed up to the Future Homes Hub
Homes for Nature Commitment to support the
protection of endangered species and provide
homes for wildlife.
·
We have specific and measurable commitments
on every site to leave a positive and lasting
legacy for the communities in which we operate.
SAFE AND
INCLUSIVE
We have a safe and inclusive
culture focused on the wellbeing
of our customers, communities
and workforce.
Recruiting and retaining the right people
meanswe deliver our key priorities and
provideexcellent customer service.
It is a priority that our processes meet stringent
standards to ensure safety and wellbeing. In
2025, we continued to drive our Target Zero
initiative, a bespoke safety excellence commitment.
Key priorities
·
We will report our Annual Incidence Injury
Rate and will aim to improve it year on year.
·
We will use our Target Zero initiative to work
towards zero incidents.
·
We aim to increase diversity across our
business and create an inclusive workplace.
·
We are committed to being a Living Wage
Foundation-accredited employer.
·
We will continue to apply ethical standards
and expect our supply chain to comply with
similar standards.
Read more on pages 30 to 40 Read more on pages 41 to 44 Read more on pages 45 to 49
We align our
SustainabilityStrategy
withthe UN Sustainable
Development Goals
We understand our material issues and align our
strategy and priorities to the Sustainable
Development Goals (’SDGs’).
Financial statementsGovernance Other informationStrategic report28 – Persimmon Plc Annual Report 2025
Carbon
DisclosureProject
(‘CDP’) Score
A-
2024: A-
Tonnes of greenhouse
gas emissions per
home sold
1.42
2024: 1.90
Community
Champion donations
c.£1.1m
2024: c.£900k
Trees planted on
our developments
c.215k
2024: c.146k
Average SAP rating
of our homes
89
2024: 86
Operational
wasterecycled
98%
2024: 98%
Investment in local
communities over
the last fiveyears¹
c.£2.3bn
2024: £2.2bn
Affordable
homes²
2,339
2024: 1,763
Low-carbon heating
solutions installed
instead of gas boilers
c.1,328
2024: 671
SUSTAINABILITY HIGHLIGHTS
Public open spaces
and gardens
provided for families
541 acres
2024: 484 acres
1. Estimated using an economic tool kit.
2. Homes provided to our housing association partners and discounted open market value homes.
Persimmon Plc Annual Report 2025 – 29Financial statementsGovernance Other informationStrategic report
In this pillar:
1
PROGRESSING
TOWARDS NET ZERO
1a
PROGRESSING
TOWARDS NET
ZEROHOMES
1b
PROGRESSING
TOWARDS NET ZERO
CARBON OPERATIONS
1c
PROGRESSING
TOWARDS NET ZERO
SCOPE 3 EMISSIONS
2
GREENHOUSE
GASREPORTING
3
CREATING A
RESPONSIBLE
SUPPLYCHAIN
The average standard assessment
procedure (‘SAP’) rating of our new homes
89
equating to an EPC ‘B’ rating
Average dwelling emission rate
ofourhomes (kgCO
2
e/m
2
/yr)*
11.78
Our carbon reduction targets
Near-term targets (2030) –
approvedby the SBTi
To reduce absolute carbon emissions
fromouroperations (Scope 1 & 2) by
46.2%
by 2030 (2019baseline)
To reduce carbon emissions
fromourindirect operations by at least
22% per m
2
completed floor area
i.e. those from our homes in use and our
supplychain, known as Scope 3, by 2030
(2019baseline)
Long-term targets (2045) –
commitment made to the SBTi
To become a net zero carbon business
across all our operations and value chain
by 2045. This will require a reduction in
emissions of at least
c.90%
with the remaining 10% offset or neutralised
through a suitable mechanism. A commitment
has been made and the exact targets are
underdevelopment
BUILDING FOR TOMORROW
Fuels 9,629
Business travel 3,513
Gas 3,512
Scope 1
(tonnes CO
2
e)
Sites inc. plots 1, 313
Manufacturing and FibreNest 722
Offices and business travel 727
Scope 2
(tonnes CO
2
e
location-based)
Purchased goods and services 1,102,711
Use of sold products 684,741
Employee commuting 8,532
Scope 3
(tonnes CO
2
e)
1
PROGRESSING
TOWARDS
NETZERO
Reducing carbon emissions to
helplimit global warming is a key
business priority. We have developed
a decarbonisation pathway to deliver
carbon reductions over the near and
long term, aligned to ensuring that
global warming remains below 1.5
o
C.
During 2025, we continued to optimise our reduction
strategies with a focus on reducing carbon emissions
from our operations, increasing energy efficiency in
our homes, and furthering our understanding of the
carbon emissions from our supply chain. As a homebuilder,
our Scope 3 emissions make up the majority (c.99%)
of the emissions that we generate. See our carbon
reporting methodology for more information.
Our 2030 near-term carbon reduction targets have
been approved by the Science Based Targets initiative
(’SBTi’), and we have committed to setting long-term
net zero carbon targets for 2045. These are challenging
targets requiring product innovation, supply chain
engagement and changes to current operational processes.
* The average dwelling emission rate has been externally assured
to a limited level of assurance by Ernst & Young LLP (see www.
persimmonhomes.com/corporate/sustainability).
Sustainability continued
Financial statementsGovernance Other informationStrategic report30 – Persimmon Plc Annual Report 2025
Our decarbonisation pathway
We have developed our decarbonisation pathway to
achieve net zero carbon across our operations and
our value chain by 2045. We are closely aligned with
the recommendations of the Transition Plan Taskforce
(’TPT’) and with the sector Net Zero Transition Plan
developed by the Future Home Hub (’FHH’) as a
framework for the new homes sector, and we continue
to work closely with the FHH on its evolution.
We already have near-term science-based carbon
reduction targets in place, which have been approved
by the SBTi, and we have committed to long-term net
zero carbon targets aligned to the SBTi standards.
Emissions from electricity use
Reduce as the grid decarbonises.
Emissions from natural gas use
Phases out of natural gas, in line with the
FutureHomesStandard.
Scope 1 and 2 emissions from
onsiteoperations
Decarbonisation strategies such as fuel
switching and compound energy savings.
Scope 3 emissions from bricks
Use of low-carbon cements and alternatives
inbrick manufacture.
Scope 3 emissions from asphalt
Use of low-carbon alternative materials
andmethods.
Scope 3 emissions from MMC and steel
Increased use of MMC and low-carbon steel.
Scope 3 emissions from concrete
Increased use of low-carbon cements and
alternative materials.
Remaining emissions In the next 10-20
years, new decarbonisation levers will
become available to further reduce emissions.
Persimmon will also explore offsetting
emissions through a suitable mechanism.
2035 2040 2045
2030 near-term SBTi targets:
·
46% reduction in Scope 1 and 2
absolute emissions.
·
Scope 3 intensity reduction of
22% bym
2
completed floor area.
2045 proposed long-term SBTi target:
·
c.90% absolute reduction in Scope 1, 2
and 3 carbon emissions.
100%
50%
0%
CO
2
e absolute emission as a % of the 2019 baseline
2022 2025 2030
We have identified key decarbonisation levers that
provide the most material reductions with current
known technologies and are in line with other key
sector decarbonisation pathways.
The main areas of reduction opportunity are:
1
Reducing our Scope 1 and 2 emissions
– These account for a small percentage of our
total emissions, but they are under our direct
control, and so this is a key area of focus.
2
Reducing in-use emissions from completed
homes – We are committed to producing zero
carbon ready homes by 2030. The decarbonisation
of the grid by 2035 is a key enabler for reducing
carbon emissions.
3
Reducing the embodied carbon of materials
– This is a complex area across multiple supply
chains, and we are engaging with our supply
chain partners. Our vertical integration strategy,
with the use of our own timber frames, concrete
bricks and tiles, is a key contributor to reducing
our carbon emissions.
Long-term carbon reductions require significant
assumptions on the achievement of decarbonisation
ofkey carbon-intensive sectors such as cement,
asphalt steel and bricks, on which the construction
sector is dependent. These sectors have mostly made
commitments to NZC targets and are investing in
innovation and technology. We will review and update
our decarbonisation pathway regularly as new
information becomes available and key sectors
evolvetheir transition plans.
We have a strong relationship with our supply chain
and, collectively, the sector is developing common
tools and methodologies to ensure comparability in
carbon data, including EPDs and LCAs, and to support
decision making. We are an active member of the
Future Homes Hub and are a member of the Embodied
Carbon/Whole Life Carbon Working Group.
The following tables on pages 32 to 34 summarise
ourdecarbonisation pathway actions as we transition
towards net zero carbon emissions.
Persimmon Plc Annual Report 2025 – 31Financial statementsGovernance Other informationStrategic report
Our decarbonisation pathway continued
Reducing our operational carbon emissions (Scope 1 and 2 emissions)
From 2022–2026 By 2030 By 2040–2050
Our carbon reduction targets
29% reduction in absolute carbon emissions
(from2019 baseline)
46% reduction in absolute carbon emissions
(froma 2019 baseline)
Achieve net zero absolute carbon emissions by 2045
(expected to be c. 90% reduction)
Our priority actions
(already underway and planned)
100% REGO-backed electricity purchased for our
offices, sites, manufacturing facilities and supplies
to our plots whilst under our ownership
100% REGO-backed electricity purchased for our
offices, sites, manufacturing facilities and supplies
to our plots whilst under our ownership
100% eco site cabins with diesel-free hybrid generators
Efficiency-first strategy – reduction in diesel use Up to 90% switch to hybrid generators
Construction plant all-electric or hydrogen
Hybrid generators on all sites where appropriate Eco cabin replacement programme underway
100% EV car fleet
Energy-efficient cabin strategy in place
c.80% of car fleet EV
Achieve 40% car fleet EV or hybrid
Option to use green/HVO diesel replacement
HVO trial underway
Introduce electric/hydrogen construction plant
vehicles in use
External enablers
·
Grid decarbonisation trajectory maintained and sufficient
electricity grid capacity
·
Sustainable HVO or green diesel alternatives available
·
FHS in place requiring low-carbon homes
·
Grid decarbonisation on track for 100% by 2035
·
Industry availability of electric or hydrogen
constructionplant
·
100% green electricity from grid
Key: Targets in place Targets awaiting approval Actions complete Actions underway Actions planned
Sustainability continued
BUILDING FOR TOMORROW CONTINUED
1
PROGRESSING TOWARDS NETZERO CONTINUED
Financial statementsGovernance Other informationStrategic report32 – Persimmon Plc Annual Report 2025
Reducing in-use emissions from completed homes (Scope 3 emissions)
From 2022–2026 By 2030 By 2040–2050
Our carbon reduction targets
FHS Readiness Plan in place
Achieve zero carbon ready homes in use by 2030
Achieve net zero carbon emissions across our value
chain by 2045 (expected to be c. 90% reduction)
Achieve a carbon reduction of at least 22% per m
2
completed floor area by 2030 (vs. 2019 baseline)
Our priority actions
(already underway and planned)
Energy transition plans in place for all
developments
In line with the FHS, all homes to achieve
areduction in carbon emission of 75%-80%
Increased thermal efficiency
Part L 2021 homes designed with a ‘fabric first’
approach to maximise energy efficiency
New house type designs already in place in
readiness for FHS introduction
Smart home technology trials underway
12-month real-life trial of zero carbon home
atGermany Beck undertaken
Zero carbon house at Malmesbury built
Increase use of timber frames for improved
energyefficiency
c.1,135 ASHPs installed by the end of 2025
External enablers
·
Availability of ASHPs and sufficient qualified installers
·
Grid decarbonisation trajectory maintained and sufficient
electricity grid capacity
·
Lenders recognise the increased value of more energy-efficient
homes and this is reflected in mortgage offers
·
Grid decarbonisation on track for 100% by 2035
·
Gas in new homes banned through FHS
Key: Targets in place Targets awaiting approval Actions complete Actions underway Actions planned
Persimmon Plc Annual Report 2025 – 33Financial statementsGovernance Other informationStrategic report
Our decarbonisation pathway continued
Reducing the carbon footprint of materials used in construction (Scope 3 emissions)
From 2022–2026 By 2030 By 2040–2050
Our carbon reduction targets
Achieve a carbon reduction of at least 22% per m
2
completed floor area by 2030 (2019 baseline)
Achieve net zero carbon emissions across our value
chain by 2045 (expected to be c. 90% reduction)
Our priority actions
(already underway and planned)
Building around 30% timber frame homes
Increasing timber frame to c.50%
andMMCcomponents
Introduction of ~30% GGBS at Brickworks and
Tileworks to reduce cement content
New Space4 factory operational
Detailed embodied carbon study already
complete, informing materials targets
andreduction plans
Aiming to be a zero-waste company
Innovation programme in place – undertaking a
trial of zero cement substitute for bricks and tiles
Strategic partnerships with suppliers and trials
oflow-carbon alternatives
Building circular economy principles
intoouroperations
External enablers
·
Grid decarbonisation trajectory maintained and sufficient
electricity grid capacity
·
Development of supply chain partnerships
·
Standardisation of LCA methodologies and data
·
Cement industry on track to achieve its NZC pathway
·
Iron and steel industry on track to achieve its NZC pathway
·
Clay brick industry on track to achieve its NZC pathway
·
Grid decarbonisation on track for 100% by 2035
·
Embodied carbon regulations
Key: Targets in place Targets awaiting approval Actions complete Actions underway Actions planned
Sustainability continued
BUILDING FOR TOMORROW CONTINUED
1
PROGRESSING TOWARDS NETZERO CONTINUED
Financial statementsGovernance Other informationStrategic report34 – Persimmon Plc Annual Report 2025
1a
PROGRESSING TOWARDS NET ZEROHOMES
Considering the needs and experience
of our customers has been key to
our careful integration of low-carbon
design and heating solutions into
our homes. These solutions improve
energy efficiency and reduce emissions.
Our homes, which are being built to Part L 2021
standards, are more energy efficient and are reducing
carbon emissions by 31%. This is achieved by taking
a‘fabric first’ design route and using solutions such
asincreased insulation, smart heating technology,
wastewater heat recovery and solar PV. As a result,
our homes now use less energy compared to
traditional older properties.
Each of our developments has a bespoke energy
transition plan, which ensures that we are prepared for
the forthcoming Future Homes Standard (‘FHS’) and
implementing the New Build Heat Standard in Scotland.
These plans support the phase-out of gas boiler installations,
balancing regulatory timelines with commercial
considerations. Ahead of the regulatory requirements,
we have already started installing low-carbon design
and heating solutions, such as air source heat pumps.
Homes with these low-carbon heating solutions installed
are zero carbon ready in use and emissions will
reduce further once the UK grid electricity supply
decarbonises.
Innovative products and new solutions are emerging
onto the market, and our technical teams are constantly
analysing options and creating optimised solutions.
We have a significant advantage through our Space4
timber frame products to provide an effective ‘fabric
first’ approach and deliver increased insulation and
thermal efficiency, which will be a key contributor to
achieving the energy efficiency requirements.
Optimising energy performance in the home and customer
experience is a key enabler to reducing carbon emissions
and energy bills. We are evaluating the opportunities
for smart technology solutions in our homes and
currently have trials underway.
SUSTAINABILITY
AT THE HEART OF OUR
DEVELOPMENTS
Zero carbon ready homes in West Wales
Persimmon Homes West Wales has secured planning approval for 543 new high-quality,
zerocarbon ready homes in use for local people in Llanilid. All properties in these phases
havebeendesigned with energy efficiency in mind, taking a ‘fabric first’ approach.
Thehomeswilluseair source heat pumps instead of gas boilers and solar panels, reflecting
Persimmon’s commitment to sustainability and the Welsh Government’s decarbonisation goals.
The site hastaken careful consideration of our Placemaking Framework. Retained woodland to
the north ofthesite, ecological connectivity routes for dormice and bats, and state-of-the-art
sustainable drainage systems will ensure the scheme enhances the area’s natural environment.
The approval will also enable the continuation of the site’s three metre-wide shared pedestrian
and cycle paths andprovision for a bus route, supporting active travel and
reducingcardependency.
Commenting on the decision, Stuart Phillips, Managing Director of Persimmon Homes West
Wales, said: “We’re delighted to continue our investment in this important development for
thelocal community.
Llanilid has already delivered significant benefits for the area – from
apprenticeships at our on-site Construction Academy to substantial contributions for local
services. This latest approval will allow us to continue creating a sustainable, thriving new
neighbourhood where local people can live, work and raise a family.”
The homes will use air
source heat pumps and
solar panels, reflecting
Persimmon’s commitments
to sustainability and the
Welsh Government’s
decarbonisation goals.
Llanilid development, West Wales
Persimmon Plc Annual Report 2025 – 35Financial statementsGovernance Other informationStrategic report
Technology roadmap for
thedelivery ofthe Future
Homes Standard
Having implemented Part L 2021 according to our
transitional arrangements in England and the New
Build Heat Standard in Scotland, we are preparing
forfurther regulation changes. These include the
introduction of the FHS in England and similar regulation
changes in Wales. The FHS requires a significant further
increase in energy efficiency and carbon reduction.
Our key strategic changes proposed to meet the
regulatory requirements are:
·
Further increasing thermal efficiency through
the fabric such as additional insulation in the
floors, walls and roofs, and an increased use
of panelised wall systems.
·
Installing low-carbon alternative heating
systems such as air source heat pumps to
replace traditional gas boilers.
·
Exploring localised low-carbon heating
systems such as ground source heat pumps,
orsmall-scale district heating systems. We will
conduct detailed studies to ensure the most
optimised heating solutions are provided.
·
Installing wastewater heat recovery systems
and mechanical heat and ventilation systems,
which capture and reuse heat to prevent
unnecessary energy waste.
·
Increasing the air tightness of our homes.
·
Installing solar PV.
We will carefully consider each of the options and any
other innovations or new technologies that emerge in
the market on a site-by-site basis to ensure that the best
options for customers and our business are selected.
Updates to the Group’s standard house type portfolio
are in production, utilising building information
modelling to meet the new regulations.
1
Thermally efficient ground floor
2
Panelised off-site manufacturing using Space4
fully insulated timber frame
3
Gen4 bricks from our Brickworks factory
4
Air source heat pump*
5
Swift brick
6
Thermally efficient loft roll insulation
7
Photovoltaic inverter
8
Integrated photovoltaic panels
9
Wastewater heat recovery from shower
10
Roof tiles from our Tileworks factory
11
High-performance windows and doors
12
EV charging point
13
Highly efficient water fittings
* Air source heat pump shown here for illustration purposes
only. Usually located in rear garden.
Sustainability continued
BUILDING FOR TOMORROW CONTINUED
1a
PROGRESSING TOWARDS NET ZEROHOMES CONTINUED
Financial statementsGovernance Other informationStrategic report36 – Persimmon Plc Annual Report 2025
1b
PROGRESSING TOWARDS NET ZERO CARBON OPERATIONS
This visible investment
in Space4 is a sign of
how Persimmon is
advancing in terms
ofspeed, quality
andsustainability.
Kevin Rodgers
Programme Director
Our Space4 timber frame products are a key contributor
to achieving our energy efficiency requirements. The
Space4 factory in Castle Bromwich has installed a
new automated robotic line. The production line has
been custom built for our house types: 3D designs
arefed into the software, which calculates how much
material is required, with minimal waste. The benefits
of the robotic production line are already being
experienced on site through reduced assembly times
and improved quality. It provides our customers with
the benefits of increased energy efficiency and air
tightness. Our employees at the factory benefit from
improved health, safety and working environments,
which is another of our key sustainability focuses.
Reducing operational fuel and
energy efficiency is a key driver
forour decarbonisation pathway.
Throughout 2025, we have
continued to make progress in
implementing fuel and energy
consumption reduction measures.
Diesel use is the main contributor to our operational
carbon emissions. We have continued tobuild upon
several diesel reduction initiatives that were introduced
last year. Our Regional Chairs receive bi-monthly
diesel usage and hybrid generator utilisation data
from across the Company to drive site efficiency
actions and share best practice findings.
Following a successful trial, throughout 2025 a rollout
of hybrid generators has been ongoing across new
and existing sites. This has led to decreased diesel
consumption, carbon emissions, and cost savings.
With the battery storage unit, the diesel generator runs
for less time, greatly reducing the associated CO
2
e emissions.
The Group has continued its programme of energy
awareness training modules to improve on-site energy
efficiency, and a new online training module was set
up for all plant operators to help reduce idling times.
Our site cabin layout strategy guides all businesses on
the appropriate location and specifications for cabins
on a development. A key requirement of the ‘eco’ cabin
specification is to comply with JCoP Fire Regulations.
All the updated specification cabins have extra insulation
in the floor, walls and ceiling. Double-glazed windows,
automatic door closers, PIR lighting and heaters with
timers are also fitted as standard. A positive additional
benefit of these changes is that the cabins are more
energy efficient, which helps future-proof the business
and reduce carbon emissions.
The Group purchases 100% REGO-backed
renewable energy for our offices, sites, manufacturing
facilities and supplies to our plots whilst under
ourownership.
We can see the impact of our consumption reduction
measures on our GHG emissions. In 2025, market-based
absolute carbon emissions have reduced to 16,938
tonnes, which is a 17% reduction compared to the
prior year. The carbon emissions/home have also
reduced to 1.42 tonnes CO
2
e/home (2024: 1.90
tonnes CO
2
e/home). We remain on track to meet our
near-term Scope 1 and 2 science-based reduction targets.
Our decarbonisation pathway also includes a detailed
plan for reducing operational carbon emissions across
the Group, as laid out on pages 31 to 34.
Greenhouse gas emissions per home
sold(market based)
1.42
tonnes CO
2
e/home
2024: 1.90 tonnes CO2e/home
Absolute Scope 1 and 2 emissions
(market based)
16,938
tonnes CO
2
e
2024: 20,306 tonnes CO2e
HVO TRIAL
Persimmon continues to explore options for
low-carbon alternatives to carbon-intensive
activities on site. As part of our
decarbonisation strategy and drive to reduce
operational carbon emissions, in mid-2025
we began a trial of thelow-carbon fuel,
Hydrotreated Vegetable Oil(’HVO’). HVO is
a clear, odourless liquid hydrocarbon fuel
with minimal sulphur content. Itreduces
greenhouse gas emissions significantly. The
trial involved several of our regions, testing
HVO on their sites for use in plant and for
generators with an estimated c.2,806 tonnes
of CO
2
esaved compared using traditional
diesel. According to the site and procurement
teams in these regions, the transition from
diesel toHVO was seamless, with the fuel
being used inboth owned and leased JCB
telehandlers. Thetrial is ongoing, with the
potential for expansion to further businesses
ifitissuccessful.
Persimmon Plc Annual Report 2025 – 37Financial statementsGovernance Other informationStrategic report
Our Scope 3 emissions from indirect
activities in our supply chain make
up about 99% of our overall
carbonfootprint.
Summarised below are some of the broad-ranging
approaches we have taken to reduce our Scope 3
emissions and the whole life carbon impacts of our
business in 2025:
·
We have experienced significant benefits in
reducing embodied carbon impacts through our
vertical integration strategy with our timber frame
manufacturing facility, Space4. The use of timber
frame construction (kits and roof systems) replaces
masonry components and, from a sector-wide study
completed by the Future Homes Hub in 2022, on
average delivers a 16% reduction in embodied carbon.
·
Our Brickworks and Tileworks factories are also
part of our vertical integration strategy. We use
concrete in our bricks and tiles, which are less
carbon intensive to produce than traditional clay
ones. In addition, our Brickworks factory has
trialled the use of ground granulated blast-furnace
slag (‘GGBS’) as a 30% cement replacement in our
paver production, and we expect to extend this to
some of our brick production in 2026. Following
successful testing, the first Gen4 site in Durham was
completed during 2025, and the new bricks are
expected to be rolled out to further sites in 2026
and 2027. Subject to manufacturing volumes, a
100% switch to Gen4 bricks will potentially replace
c. 6,000 tonnes of cement a year, giving an annual
saving of around 3,840 tonnes of CO
2
e. Our
Brickworks and Tileworks factories are also
implementing low-carbon energy upgrades with
solar PV panels being installed during Q1 2026,
which should provide c.20% of the site’s electricity
requirement. The use of air source heat pumps is
being investigated as an alternative to LPG boilers,
together with heat recovery systems to increase the
efficiency of our curing systems.
·
We have collaborative long-term relationships with
our supply chain and, as part of our responsible
procurement process, regularly engage with it on
sustainability, new materials and innovations. In
addition, we are partners with the Supply Chain
Sustainability School to support the delivery of a
consistent approach to sustainability and responsible
sourcing. The School provides a learning and
engagement platform to upskill people working
within the built environment sector. Our partnership
support enables free online learning materials,
seminars, workshops and other services for our
supply chain to help it improve environmental,
social and economic sustainability awareness on
issues including carbon reduction, waste reduction,
resource use and human rights.
·
We have completed an embodied carbon and
whole life carbon study of all of our core house
types. This provides us with a detailed understanding
of material type contribution and informs where
focus should be placed to make the most meaningful
reductions. We will be engaging with our key suppliers
to progress actions and opportunities.
·
Reducing the whole life carbon emissions of new
build homes is an industry-wide challenge. We
work closely with the Future Homes Hub on cross
sector initiatives and support the whole life carbon
working group.
We have experienced
significant benefits in
reducing embodied
carbon impacts
throughour vertical
integration strategy
with our timber
framemanufacturing
facility,Space4 and
ourBrickworks and
Tileworks factories.
Sustainability continued
BUILDING FOR TOMORROW CONTINUED
1c
PROGRESSING TOWARDS NET ZERO BY REDUCING OUR SCOPE 3 INDIRECT EMISSIONS
Financial statementsGovernance Other informationStrategic report38 – Persimmon Plc Annual Report 2025
2
GREENHOUSE GAS REPORTING
Greenhouse gas emissions
The Group’s absolute GHG Scope 1 and 2 emissions
decreased in 2025. Data capture and reporting have
continued to improve, allowing the effects of efficiency
measures to be more visible and for the opportunity to
share best practice. Many energy efficiency measures
have been utilised this year, including wider rollout of
hybrid generators, plant operator monitoring for idling
times and a trial of a low-carbon fuel. Best practice
findings are rolled out across the business to continue
to reduce carbon emissions.
Scope 3 emissions make up the majority of our total
GHG footprint, around 99%. Scope 3 Category 1
(relating to purchased goods and services) emissions
are calculated using a spend-based method, and our
increased spend in 2025 has been a key factor in
driving our increased carbon emissions in this Category.
Scope 3 category 11 emissions (use of sold products)
have decreased even with increased volumes, reflecting
the improved energy efficiency of our homes. The
calculation methodology for this category requires
a60-year timeframe to be used.
Greenhouse gas emissions and energy consumption reporting (Scope 1, 2 and 3)
The Group has reported on greenhouse gas emissions in line with the UK Government’s ‘Environmental Reporting Guidelines: including Streamlined Energy and Carbon
Reporting guidance’ (dated March 2019). The GHG Protocol Corporate Accounting and Reporting Standard (Revised Edition) has been used as the methodology to quantify
and report greenhouse gas emissions. The Group operates in England, Wales and Scotland, and emissions are reported in line with the financial control of the Group.
Greenhouse gas emissions 2025 2024 2023 2022 2019 baseline
Scope 1 emissions from gas, transport, and construction site fuel use tCO
2
e 16,654* 20,295* 21,949* 25,005* 30,797
Scope 2 emissions from electricity use
Location based tCO
2
e 2,762* 2,987* 2,594* 2,151* 3,209
Market based tCO
2
e 284* 11 * 24* 12 * 2,747
Total Scope 1 and 2 greenhouse gas emissions
Location based tCO
2
e 19,416* 23,282* 24,544* 27,156* 34,006
Market based tCO
2
e 16,938* 20,306* 21,973* 25,017* 33,543
Scope 1 energy consumption MWh 79,982 79,138 87,322 99,980 104,257
Scope 2 energy consumption
MWh 15,258 13,458 12,887 11 , 4 1 0 12,135
Carbon intensity Scope 1 and 2 emissions (per home sold)
Location based tCO
2
e/home sold 1.63 2.183 2.474 1.826 2.14
Market based tCO
2
e/home sold 1.42 1.904 2.214 1.683 2.12
Scope 3 emissions – category 1: purchased goods and services tCO
2
e 1,102,711* 883,938* 962,496* 1,288,322* 1,371,169
Scope 3 emissions – category 11: use of sold products tCO
2
e 684,741* 767,884* 791,950* 1,394,740* 1,392,450
Scope 3 emissions – category 7: employee commuting tCO
2
e 8,582 8,527 9,952 11,067 9,034
Carbon intensity Scope 3 carbon emissions (emissions per 100m
2
completed floor area) tCO
2
e/100m
2
168 176 207 216 197
Total Scope 3 emissions
tCO
2
e 1,840,426 1,709,398 1,764,398 2,694,129 2,848,173
Out of Scope emissions tCO
2
e 2,597
* The Scope 1, 2 and 3 (categories 1 and 11) greenhouse gas emissions data for 2022-2025 has been externally assured to a limited level of assurance by Ernst & Young LLP (see www. persimmonhomes.com/corporate/
sustainability). The Group’s GHG Reporting Methodology can be found at www.persimmonhomes.com/corporate/sustainability.
Continued improvements have been made to data capture and reporting methodologies during 2025. As part of the Group’s sustainability commitments, from August 2021
the Group purchases 100% REGO-backed renewable energy for our offices, sites, manufacturing facilities, and supplies to our plots whilst under our ownership. In 2025,
astravel in electric and plug in hybrid vehicles may not always be from renewable electricity sources, we have included this in our market-based emissions.
Persimmon’s material Scope 3 emissions include: category 1, purchased goods and services (obtained from spend data and will be improved over time as carbon data
becomes available from suppliers); category 11, homes in use (obtained from SAP information); and category 7, employee commuting (obtained from employee travel survey
data). In 2019, 2024 and 2025 our total Scope 3 emissions figure in the table above includes all Scope 3 categories. In 2022 and 2023, our total Scope 3 emissions figure
in the table above is based on material Scope 3 categories only (i.e. 1, 7 and 11).
In 2025, we have commenced reporting out of scope emissions, which includes biogenic emissions from the use of HVO in our operations.
Persimmon Plc Annual Report 2025 – 39Financial statementsGovernance Other informationStrategic report
Our business operations critically
rely on our supply chain to deliver
quality homes for our customers.
Our suppliers and contractors are
appointed through a combination of
Group framework agreements and
local operating company relationships.
Mandating ethical procurement
practices, our suppliers must comply
with our Supplier Principles and
Group policies.
When developing framework agreements and making
significant sourcing decisions, all requests for information
(‘RFIs’) and quotations (‘RFQs’) include environmental
and sustainability criteria with appropriate weightings.
Our Group Procurement team discusses sustainability
requirements quarterly in supplier reviews with key suppliers.
We are partners with the Supply Chain Sustainability
School to assist in the delivery of a consistent approach
to sustainability and responsible sourcing. The School
provides a learning and engagement platform to
upskill people working within the built environment
sector. Our partnership support enables free online
learning materials, seminars, workshops and other
services for our supply chain to help it improve
environmental, social and economic sustainability
awareness on issues including carbon reduction,
waste reduction, resource use and humanrights.
Responsible sourcing
oftimber
We are committed to responsible sourcing and
look to use supply chain systems, which minimise
the environmental impact associated with the
production of key commodities such as timber.
Allbuyers, surveyors, suppliers and subcontractors
to Persimmon via Group deals are required to
purchase Forest Stewardship Council (‘FSC’)
orProgramme for the Endorsement of Forest
Certification (‘PEFC’) certified timber and
timber-derived materials for use in all our operations.
If FSC or PEFC certified timber and timber-derived
materials cannot be purchased, evidence must be
provided that alternative materials are sourced
from reputable and sustainable sources.
As a minimum, all buyers, surveyors, suppliers
and subcontractors must ensure compliance with
any applicable laws and regulation in relation
tothe sourcing of timber and timber-derived
materials. The Group Procurement department
actively tracks compliance with this policy.
Timber and timber-derived materials are a key
feature of our annual Carbon Disclosure Project
(‘CDP’) reporting, through the Forestry section
ofthe questionnaire. We gain the information
forour disclosure from a detailed annual
questionnaire to our Group timber and
timberproduct suppliers.
2025 CDP Forests Score
B
PARTNERSHIP
WITH
NEXUSREGEN
Pioneering the shift
tocircular economy
inconstruction
Following a successful trial of the Nexus
ReGenMaterials Exchange Platform (’MEP’),
inNovember 2025, Persimmon signed a
nationwide contract with them. Nexus ReGen
isthe UK’s leading digital platform for the
sustainable reuse of construction materials.
Persimmon is the first housebuilder to mandate
anMEP Group-wide, signalling a shift
towardscircular construction at scale.
Theobjective ofthis partnership is to
reducecarbon emissions,material waste
andreliance onlandfills.
Waste reduction initiatives
In 2025, 98% of waste was recycled or reprocessed
from our sites and off-site manufacturing facilities
(2024: 98%), with 7.45 tonnes of waste generated
perhome sold (2024: 6.78 tonnes).
We have continued the practice of recycling brick and
block waste for reuse in other areas, such as piling
platforms and scaffold bases, reducing waste and the
requirement for third-party aggregates. Additionally,
we have successfully implemented the process of using
site won soils and converting them into fill material to
use at our development in Wates Lane, Redditch. This
process, undertaken by ECOFILL, negated the need
toimport aggregates as per the normal process.
Soil management is also an important aspect of
ourwaste management strategy. In 2025, after a
successful trial we have built upon our soil reuse
capability by agreeing a deal with Nexus ReGen.
Hundreds of Persimmon projects nationwide will
listtheir material import and export requirements,
fromsoils and aggregates to other materials,
exclusively on the Nexus ReGen platform. This allows
for a data-driven approach to material planning, giving
the teams visibility of reuse opportunities earlierin the
project lifecycle and allowing Persimmon to action material
reuse at a scale not previously possible. It gives Persimmon
the opportunity to divert significant quantities of
materials from landfills, reduce primary material
demands, and avoid unnecessary haulage. In
Cumbria, we have also implemented the transfer of
excess topsoil to a working farm to improve the quality
of existing soil for agricultural use. This was through a
formal planning process, and identification and
evidence were applied. Additionally, we have
continued to use our Soil Register to internally share
information about clean site soil and subsoil, cutting
waste and material costs nationally. We are also a
Principal Member of CL:AIRE, a UK charity committed
to providing a valuable service for all thoseinvolved
insustainable land reuse.
Sustainability continued
BUILDING FOR TOMORROW CONTINUED
3
CREATING A RESPONSIBLE SUPPLY CHAIN
Financial statementsGovernance Other informationStrategic report40 – Persimmon Plc Annual Report 2025
In this pillar:
1
BUILDING FOR YOU
2
CONNECTING PEOPLE WITH NATURE
3
LEAVING A LASTINGLEGACY
Affordability
c.£286k
Persimmon Homes private
average selling price
c.19%
below UK national average
Investment in local
communities
(over five years)
c.£2.3bn
2024: £2.2bn
Donations to local charities
c.£1.1m
2024: c.£905k
NHBC Reportable Items
0.29
2024: 0.26
TRANSFORMING COMMUNITIES
Persimmon places a strong
emphasison supporting sustainable
communities, and our ‘Transforming
Communities’ sustainability pillar
reinforces this commitment across
the business.
Creating sustainable places for our customers and
communities is central to our business. To achieve this,
we have introduced a Placemaking Framework that
guides every development, fostering a strong sense of
place and ensuring we deliver attractive, well-designed
communities with valued green spaces and convenient
connections to local amenities.
The Persimmon Way, our construction excellence
programme, is driving continued improvements in
ourbuild quality. Continued efforts from all our teams
mean that we are proud to be an HBF five-star rated
housebuilder for the third consecutive year, and have
kept our NHBC Reportable Items at low levels with
ascore of 0.29 for 2025.
Our customers are seeing the benefits of the investments
we are making in our customer experience processes.
Persimmon Homes and Charles Church have both
been rated Excellent with 4.6 stars on Trustpilot in
2025. We are proud to deliver affordable homes that
local people want to live in. OurPersimmon Homes
private average selling price of£286,145 is c.19%
below the UK national average.
Trustpilot scores
Persimmon Homes
4.6
2024: 4.5
Charles Church
4.6
2024: 4.4
Persimmon Plc Annual Report 2025 – 41Financial statementsGovernance Other informationStrategic report
Our Placemaking Framework
ensures every development is
designed to reflect local character
and needs, creating sustainable
communities where wellbeing
andsocial value are central.
Fullyaligned with The Persimmon
Way, this approach supports our
journey to net zero carbon.
At its core, our Placemaking Framework draws on
theNational Model Design Code, which defines key
characteristics of well-designed places, including
character, climate and community. Building on this,
wehave developed ten pledges that guide the
designprocess for each development, ensuring
localrequirements are incorporated. This approach
leads to high-quality schemes that complement their
surroundings, meet local authority expectations,
andfoster thriving communities.
Climate resilience is integral to our approach, and
consideration of this aims to ensure our developments
are future-proofed for future risks. This includes
physical risks such as drought and flooding, which are
mitigated using blue and green infrastructure such as
sustainable urban drainage systems. Additionally, our
homes are designed with lower energy needs ready
for the transition to low carbon/zero carbon ready
forour customers.
Creating healthy, safe and enjoyable public spaces
isessential to sustainable communities. This includes
shared streets, walkable neighbourhoods and sustainable
transport links to schools and local amenities. Nature
is a vital part of placemaking, enhancing quality of life
and biodiversity. We maximise green spaces to support
wildlife and create environments where people and
nature flourish together.
PLACEMAKING
FRAMEWORK INPRACTICE
Community-focused development in Somerset
Our Quantock Road scheme in Somerset demonstrates how our
PlacemakingFrameworkprinciples are considered from the very beginning
ofthesitebyplanning asustainable, community-focused development that
enhanceslocal infrastructure andhousing provision.
This site’s inclusion of pedestrian links, a neighbourhood centre and play areas
supportstheframework’s community-driven principles. These features are consistent
withtheframework’s goal of creating walkable neighbourhoods and shared spaces.
All the homes in the first phase will be zero carbon ready, fitted with air source heat
pumps.The site also features a dark corridor for wildlife, which maintains safe movement
and foraging routes for nocturnal species. These features, combined with sustainable
drainage systems, retained green boundaries and other biodiversity corridors,
demonstratethe climate resilience and ecological stewardship focuses of the
PlacemakingFramework.
The site will support the existing local community. Affordable homes will
beprovidedonsiteand a £2m contribution for off-site affordable housing will
addresslocalhousing needs. Additionally, over £4.5m is provided for local education,
highways andcommunityfacilities.
This development sets a benchmark for placemaking excellence,
combiningenvironmentalresponsibility with social and economic
benefitstoleavealasting legacyinWest Somerset.
TRANSFORMING COMMUNITIES CONTINUED
1
BUILDING FORYOU
Sustainability continued
Financial statementsGovernance Other informationStrategic report42 – Persimmon Plc Annual Report 2025
GUIST WETLAND
A nature-based solution for Nutrient Neutrality
Our Anglia region developed an innovative solution to balance housing development
withthe need to mitigate nutrient neutrality.
The Guist Wetland was designed to treat water from the River Wensum, a designated
Special Area of Conservation (’SAC’), offset nutrient loading and enhance biodiversity.
Theproject tackles nutrient neutrality by sustainably removing excess phosphates and
nitrates from the water course. This site bringstogether people with nature by creating a
habitat that utilises specialist planting ofnative wetland vegetation to support ecological
diversity for species such as water voles,bats, reptiles, and wetland birds. The wetland also
reduces flood risk through naturalprocesses.
The Guist Wetland sets a benchmark for nature-based solutions in the UK. Beyond nutrient
neutrality, it offers opportunities for community engagement inconservation.
In response to the significant challenges created by the Nutrient Neutrality requirements,
the team took direct steps todevelop its own nature-based nutrient mitigation solution.
Thisinnovative solution is thefirst of its kind in Norfolk and one of the first designed to treat
both phosphates and nitratesin the country. The scheme will release planning consents and
bring forward 1,000homes at three sites in the area supporting much-needed housing.
2
CONNECTING PEOPLE WITH NATURE
Creating sustainable communities
isa core principle within our
Placemaking Framework, which
recognises the importance of
designing green spaces for both
nature and people to support wellbeing.
Our priority is to deliver quality, affordable homes
while creating sustainable places. Increasingly, our
new developments incorporate Biodiversity Net Gain
(’BNG’) and feature enhanced green spaces, such as
allotments and orchards to support our customers to
have healthy lifestyles. We are proud to create spaces
that bring families and communities together and
provide opportunities to reconnect with nature and
enhance wellbeing.
Biodiversity Net Gain and beyond
From the very early stages of a new development,
weconsider how to incorporate and strengthen BNG
and the natural environment, recognising the value of
biodiversity assets from the outset.
Our designs consider interactions with existing habitat
assets, aiming to retain and enhance them wherever
possible. We also consider how our customers can
connect and benefit from green space and nature.
Weencourage the formation of new habitats that
alignwith local biodiversity priorities, connect with
thewider landscape, and contribute towards nature
recovery through biodiversity gains.
We continue to embed biodiversity principles into
operations and decision making, building on best
practices across regions. In recognition of well-designed
schemes, our internal Excellence Awards include
categories on sustainability and biodiversity to celebrate
efforts towards nature and sustainability principles.
We remain strongly positioned to effectively
deliver BNG, and our ability to make positive
ecological choices is further strengthened by
ourin-house expertise.
We are actively engaged in a wide range of industry
stakeholder engagement and collaboration on BNG
implementation. We collaborate widely across the
sector, including through the Future Homes Hub
Placesand Nature Group and its sub-working
groups,ensuring consistency and proactive
alignmentwith Government guidance.
Tree planting
We planted c.215,000 whips and trees in 2025.
Thisprovides valuable benefits not only to biodiversity,
but also to our customers by contributing to community
wellbeing and helping to cool urban areas, promoting
environmental sustainability within our developments.
Homes for Nature commitment
In July 2024, we signed up to the Future Homes Hub
Homes for Nature commitment, which is a sector-wide
initiative aimed at protecting vulnerable and endangered
species by providing places for our wildlife to shelter
and thrive. Persimmon is involved in the working
groups that developed this commitment.
As part of Homes for Nature, we have committed to
installing swift bricks and hedgehog highways across
our developments, alongside nature-supportive planting.
These features are installed along with guidance from
ecological consultants to ensure they meet local
wildlife needs.
Persimmon Plc Annual Report 2025 – 43Financial statementsGovernance Other informationStrategic report
As a national business with a local
presence, we are committed to
leaving a lasting legacy for the
communities in which we work.
We support c.23,500 jobs across the supply chain
andc.96,000 jobs across the wider community.
Ourdevelopments engage local suppliers and
tradespeople, supporting the local economy.
Each of our operating businesses has detailed knowledge
of its local communities. In addition to delivering
much-needed, attractively priced homes to local
people, our teams support them in many other ways,
engaging with them to design and develop areas that
suit their needs, provide infrastructure and support
local charities.
Local young people also benefit from our commitment
to supporting education and providing opportunities.
Through the Persimmon Ambassador programme,
which started in 2024, we attend school and college
events, providing career advice. We sit on education
boards to help shape the curriculum to provide construction
skills for the future. We further support colleges with
material donations, including bricks from our Brickworks
factory, and regularly sponsor college award ceremonies.
We take a local approach to charitable and community
initiatives, and in 2025 supported 288 charities and
organisations with £1,084,458 in donations.
Examples being:
·
Persimmon Homes West Wales donated £1,000
tothe 2026 Saundersfoot New Year’s Day Swim,
which raises money for local charities.
·
Wem & District Rotary Club has been awarded
£3,000 from Persimmon Homes West Midlands.
·
St Barbara’s Primary School in Muirhead has
received a £5,000 donation from Persimmon
Homes West Scotland to fund planned upgrades.
TRANSFORMING COMMUNITIES CONTINUED
3
LEAVING A LASTING LEGACY
SCHOOL
PUPILS DESIGN
BIRD BOXES
for Woodlark Place,
Greenham
School pupils from Greenham in West Berkshire
have painted bird boxes and bee houses
toencourage wildlife at our Woodlark
Placecommunity.
Members of the eco school council rose to the
challenge and worked together on a series
ofdesigns that will attract creatures to the
development, particularly pollinators. The children
were invited to the show home where the
topdesigns will be placed in the garden,
withotherslocated around the development.
Rachel Faulkner, Sales Director for Charles Church
Thames Valley, said: “We were delighted that the
children were able to take part in this project and
help us to support wildlife here in Greenham. We
are proud of our record of supporting biodiversity
in the communities inwhich we are building and
strive to offer additional habitats wherever we can.”
We donate our 100,000th brick
to colleges across Scotland
The Cabinet Secretary for Education and Skills and
local MSP Jenny Gilruth joined students and staff from
the construction department at Fife College to take
receipt of their latest 10,000-brick delivery.
The bricks provide students with the opportunity to
learn their trade using the same high-quality materials
used on live construction sites. The donation is part of
our wider commitment to supporting construction
colleges, apprenticeships and skills development,
helping to ensure a pipeline of qualified tradespeople
for the housing sector. While there, Jenny spoke to
Casey Gardner, who was the first apprentice hired
through our partnership with Fife College. Jenny said:
“It was a pleasure to join staff and students at Stenton
Campus in Glenrothes to mark this fantastic milestone
as Persimmon Homes donates its 100,000th brick to
support construction skills across Scotland. This
collaboration has gone from strength to strength,
helping more young people in Fife to live, learn and
work locally, while contributing to Scotland’s growing
construction sector.”
Jim Metcalfe, Principal of Fife College, added: “Our
award-winning partnership with Persimmon is vital to
ensuring skilled workers for our region’s construction
industry. It was our privilege to have Jenny join us, to
mark another wonderful milestone in this story.”
Supporting the
nextgeneration of
construction talent is
atthe heart of what we
do. By donating these
materials, we’re giving
students the chance
togain invaluable
hands-on experience
–building their skills
andconfidence in a
real-world context.
William Smith,
Senior Regional Apprenticeship Manager
Sustainability continued
Financial statementsGovernance Other informationStrategic report44 – Persimmon Plc Annual Report 2025
In this pillar:
1
WORKING SAFELY
2
INVESTING IN A DIVERSE BUSINESS
3
RESPECTING HUMAN RIGHTS ACROSS
THE VALUE CHAIN
RIDDORs¹
3.8
2024: 2.2
AIIR²
1.7
2024: 1.3
Training interventions at
excellencelevel³
445
2024: 410
Percentage of female
employees insenior roles
34%
2024: 34%
1. RIDDORs reported per 1,000 workers including, where relevant, those reported by our
contractors excluding our manufacturing operations.
2. Annual Incidence Injury Rate, our own RIDDORs reported per 1,000 workers.
3. The training interventions at excellence level have been externally assured to a limited
level of assurance by Ernst & Young LLP. The number of excellence programmes has
increased from 5 to 11 in 2025. The assurance statement and methodology are
available at www.persimmonhomes.com/corporate/sustainability.
SAFE AND INCLUSIVE
We have a safe and inclusive culture
focusedon the wellbeing of our customers,
communities and workforce.
Maintaining a safe environment is of paramount importance and
wehave a proactive and progressive approach to health and safety.
Our safety management system defines the policies and procedures
to ensure employees, contractors and visitors can be safe on our sites
and in manufacturing businesses. Extensive training and inspections
enable effective delivery. A key focus is placed on wellbeing,
especially mental health, and raising awareness.
Recruiting and retaining the right people means we deliver our
fivekey priorities and provide excellent customer service. Equality,
diversity and inclusion are key enablers for this, and we have
instigated new policies and training programmes to further embed
this in the business and decision making.
We adopt an industry-leading approach to training, with dedicated
in-house resource providing a wide range of learning opportunities
toall employees. We proactively review our training programmes,
making updates and including additional programmes where required,
to ensure they continue to meet business needs. We monitor a range
of training measures, including the number of days of training delivered
and the number of different ‘interventions’, which are categorised as:
·
Introductory – This training typically covers basic courses
required for the business to operate in compliance and for
colleagues to understand the required Persimmon ways of working.
·
Competent – This level of training enables colleagues to fulfil
their core skills and build their capabilities.
·
Excellence – These training programmes are focused on
providing opportunities for skills development and progression,
tofulfil our people’s potential.
Ensuring ethical, safe and fair working conditions within our supply
chain is very important, and we operate a robust approach to supplier
selection and adherence to our policies. We are mindful of the risks
ofmodern slavery in the construction industry and have training
programmes in place, site inspections and whistleblowing provisions.
1
WORKING SAFELY
The wellbeing of our customers, our workforce
and our communities remains paramount. We
take a proactive and progressive approach to
our health and safety strategy and objectives.
Our health, safety and environment
(‘HS&E’) approach
·
We now have an embedded behavioural health and safety campaign,
Target Zero, with the tagline, 'Zero Regrets'. 2025 is the second
successful year of the campaign. The goal of the campaign is to
raise workplace safety awareness and accountability with every
team member to minimise incidents that harm colleagues. The
foundation of the campaign is to empower our leaders to set a
positive culture where everyone knows that safety is a priority.
Through the campaign, safety is an expectation and not a request,
and our employees and contractors feel that they can truly make
adifference by making decisions that prevent incidents from
happening. They now feel that if they see something that seems
unsafe, they can do something about it. We use powerful messaging
through posters and direct communication with our site workforce
through The Persimmon Way App and Site Manager Toolbox
Talks. Supported by our THINK rules, the initiative featured Safety
Week in July, with leadership visits, promotional materials and the
inspiring ‘On the sidelines’ videos with rugby legends. The campaign
is further supported by a safety index, which tracks incidents so that
we can measure ourselves effectively by undertaking benchmarking
to track improvement.
·
Following a rigorous audit process with the British Standards
Institution, we have been awarded ISO 45001 by the UK
Accreditation Body. This certification confirms that our
occupational health and safety management systems
meettherecognised international standard.
Persimmon Plc Annual Report 2025 – 45Financial statementsGovernance Other informationStrategic report
Our health, safety and
environment (‘HS&E’)
approachcontinued
·
We continue to recognise good HS&E performance
through our annual internal ‘HS&E Excellence Awards’
by rewarding site teams that have demonstrated a
passion and commitment to HS&E initiatives above
and beyond policy requirements.
·
We have further developed The Persimmon Way
App, our internally developed and bespoke app
across all our sites for induction and site sign-in,
toenable more effective checking of competency
cards of personnel on site, to ensure they have the
required HS&E training. We have partnered with
the Construction Skills Certification Scheme, so that
these checks are done via an automatic digital link
with their systems, making the checks more reliable
and cutting down site management time.
·
We have continued our random drug and alcohol
testing programme for all our sites and manufacturing
facilities, enhancing the testing programme to
capture ride-on plant operatives as routine due
tothe risk level they pose.
·
We have purchased and installed human recognition
cameras for our owned mobile plant and concluded
a deal so that the hired mobile plant will also have
these cameras installed as standard. These cameras
cover all the blind spots on a machine; the camera
constantly records and generates an alert to the
operator when a human enters the danger zone.
·
We have made improvements to the equipment
weuse on our sites, with safety in mind. We have
moved over to scaffold staircases from scaffold
ladders as our primary access and egress from
scaffold platforms. We have also replaced
allquick-releasing tipping skips with
auto-lockingones.
Maintaining our focus on wellbeing
We have continued to promote our wellbeing support
to our employed and supply chain workforce:
·
Men’s Mental Health Week – we had a focus on
suicide and shared some of our colleague’s stories
on the intranet and Persimmon Way App for all our
employees, weekly workforce and subcontractors.
·
International Men’s Day – we held a webinar with
one of our Non-Executive Directors, to promote
men’s health and celebrate male role models.
·
Andy's Man Club supported various events on our
sites throughout the year. Through partnerships with
Lighthouse and Mindflow, we have run a series of
drop-in mental health awareness sessions on site
forour supply chain workforce.
·
Mental Health Awareness Week – we explored
how moving more is good for our mental health,
and directed people to resources available for support.
·
World Mental Health Day – we sent out communications
on how to talk about mental health safely, signposting
Mental Health First Aiders (’MHFA’) and our
Employee Assistance Care First programme.
·
World Suicide Prevention Day – we ran some
communications on mental health in the construction
industry with details of organisations that can help
in times of crisis.
·
We offer employees a full range of mental health
training through our MHFA accredited training team.
HOMEBUILDERS
AWARDSSUCCESS
In 2025, the inaugural Homebuilder Safety Awards were held in Birmingham.
Wewere awarded the Best H&S Worker Engagement Programme for our
TargetZero campaign and the use of The Persimmon Way App to engage with
oursite workforce. Additionally, our East Scotland region was awarded the
BestLargeBuilder Regional Award for the health and safety arrangements
onoursite in Stirling.
We also received a special award for Best H&S in the Community. This was
awarded to our West Scotland region for going above and beyond by visiting
aschool local to one of our sites in Muirhead. The team spoke to pupils about
staying safe near building sites and gifted them ‘Cones and Building Homes’,
ourchildren’s book that teaches construction safety and introduces young people
tothe industry. Chris Logan, Managing Director, West Scotland, said:
“We’redelighted to receive this award, which highlights the hard work our teams
put into keeping both our people and our neighbours safe. Engaging with local
schools helps us raise awareness, inspire the next generation and ensure that
everyone understands how to stay safe around our developments.”
Sustainability continued
SAFE AND INCLUSIVE CONTINUED
1
WORKING SAFELY CONTINUED
Financial statementsGovernance Other informationStrategic report46 – Persimmon Plc Annual Report 2025
Training
Investment in training is a key element of mitigating
theGroup’s health and safety risk. All members of
ourworkforce, including our subcontractors, undergo
extensive training to safeguard the wellbeing of everyone
who comes onto our sites, into our manufacturing
facilities or into our offices. This is now enhanced
bythe new app.
HS&E training modules through our learning management
system and ‘Toolbox Talks’ are regularly delivered to
our office and site personnel. These training modules
are delivered using Group-wide training material
developed by our HS&E department. The results of
ongoing performance monitoring undertaken by the
department determine which topics are covered at
regional/site level.
Inspections
Under the direction of our senior management team,
the HS&E department performs regular inspections
ofthe Group’s operating activities. This includes a
periodic enhanced environmental inspection in
addition to our regular HS&E site inspections. The
results of these inspections are provided to relevant
management and have been used to identify both
areas for improvement and areas of best practice
thatcan be shared across the business.
In 2025, the HS&E department undertook 8,251 site
inspections. Our HS&E team has considerable experience
in providing both a proactive advisory and reactive
incident-led approach to identify and mitigate health
and safety risk.
Site inspections undertaken
8,251
Work-related injuries
During 2025, the number of construction work-related
injuries in our housebuilding operations we reported to
the Health and Safety Executive (‘HSE’) under the Reporting
of Incidents, Diseases and Dangerous Occurrences
Regulations (‘RIDDOR’) was 23 (2024: 17). Injuries
per 1,000 workers, which includes injuries sustained
by our contract workforce, was 3.8 per 1,000 workers
(2024: 2.2). The level of build per injury, including
contractor injuries, was 243 legal completions per
injury (2024: 382).
Our Group Annual Incidence Injury Rate (‘AIIR’) for
2025 was 1.7 per 1,000 workers (2024: 1.3). In our
manufacturing operations, we reported 0 RIDDORs
in2025 (2024: 3).
Building safety
In 2025, we continued to strengthen our leadership
position on building safety, further embedding the
internal reforms introduced following the Grenfell
Tower tragedy and maintaining a clear focus on
delivering safe, high-quality homes.
·
Building a Safer Future (’BSF’) Chartered Champion
status was maintained throughout the year, providing
independent verification of our leadership and
safety culture. This accreditation runs until August
2026, when the BSF will undertake its next external
audit of the business.
·
Progress also continued delivery of the ‘Building
Safety Action Plan’ (’BSAP’), our detailed internal
response to the Grenfell Tower Inquiry Report.
Keyelements include developing building safety
competency frameworks for safety-critical roles,
introducing clearer gateways for consistent design
governance, and strengthening inspection
arrangements for apartment schemes.
·
The design phase of the building safety Golden
Thread digital records programme was launched,
creating the foundations for a connected system
thatwill capture key safety information for all
apartments from planning through to handover.
Scheduled for completion in H2 2026, the programme
(which will be scalable to all plots) will provide stronger
assurance, consistent compliance evidence and
improved transparency for duty holders, residents
and regulators.
·
Development of new Group standards for fire safety
also commenced in 2025. This includes the Company’s
first Fire Door Standard and a Passive Fire Protection
Trade Specification. When rolled out in H1 2026,
these documents will set clear expectations for
specification, procurement, installation and maintenance,
improving consistency and reducing risk across
allregions.
·
Engagement with regulators and industry bodies
remained strong throughout 2025, including
ongoing positive dialogue with the Building Safety
Regulator (’BSR’), the Office for Product Safety and
Standards (’OPSS’), the National Regulator for
Construction Products (’NRCP’) and the Industry
Competence Committee (’ICC’). Through these
relationships, the business contributed to national
discussions on construction-product safety, digital
evidence and future regulatory oversight.
·
The pilot of the internal Building Safety Stop Notice
was launched during the year, enabling work to be
paused where safety-critical risks are identified or
where essential design or installation information
ismissing during construction. This mechanism strengthens
early risk control and reinforces our commitment to
delivering safe homesfirst time, every time.
Transparency and competency within the supply chain
continued to be strengthened through the mandatory
use of third-party certified fire-stopping contractors
and ongoing engagement with the Code for
Construction Product Information (’CCPI’).
Persimmon Plc Annual Report 2025 – 47Financial statementsGovernance Other informationStrategic report
Recruitment is a vital part of our D&I strategy, and in
2025 we continued our comprehensive recruitment
training programme available to all managers with
hiring responsibilities (over 500 individuals). The training
gives guidance on best practices in recruitment, with a
focus on the overall candidate experience. Opportunities
for improvement include how and where we advertise
roles, the wording of adverts, reasonable adjustments,
an understanding of the main bias hotspots, selection
methods, interview structure and actions post-interview.
We set stretching diversity targets in 2021, and in
2025 we expanded these to focus on increasing the
representation of ethnic minorities and females across
the Group by the end of 2027. Our progress against
these targets is as follows:
·
The percentage of females in the senior management
team is currently 34.4%, against a target of 37%.
·
Of all our salaried roles in the Company, the female
percentage is 40.5%, against a target of 40%.
·
The percentage of female employees in the Group
is 31.2%, against a target of 33%.
Our two initial employee network groups, the Persimmon
Women’s Network and Persimmon Pride, continue
tothrive and are supported by a range of internal
communications initiatives to highlight key events in the
diversity calendar. In 2025, we launched two further
network groups, in line with employee suggestions: a
Religion and Culture Group, and a Carers’ Community.
Each of our network groups have an Executive lead
and the groups meet regularly toshare and develop
ideas for policy and practice, whilst providing a
support network.
Our ‘Persimmon People’ internal communications initiative
has been very successful – highlighting the diversity
ofemployees we have, who have shared their stories
and experiences. Some of these employees have also
taken part in the creation of a recruitment campaign
entitled ‘Persimmon Potential’, which will be launching
on social media in January 2026 with the
specific aim
of attracting candidates from under-represented
groupsby highlighting the range of carer opportunities
available in Persimmon and how transferable many
skills are, meaning that sector-specific experience
isnot required.
Our gender data 2025 2024 2023 2022
Board
Male 5 (56%) 5 (56%) 4 (50%) 6 (66%)
Female 4 (44%) 4 (44%) 4 (50%) 3 (33%)
Senior Executive Committee and direct reports
Male 40 (66%) 34 (66%) 36 (67%) 35 (66%)
Female 21 (34%) 18 (35%) 19 (35%) 18 (34%)
All colleagues
Male 3,178 (69%) 3,299 (70%) 3,451 (71%) 4,045 (73%)
Female 1,427 (31%) 1,432 (30%) 1,374 (29%) 1,509 (27%)
Median gender pay gap 11.2% 21.3% 9.9% 13.5%
Creating an inclusive environment
where diversity is embraced is crucial
for our business.
We respect all individuals and believe that having a
diverse workforce allows us to bring in the best people
and ensure everyone can flourish. This commitment to
diversity and inclusion (‘D&I’) not only fosters a
positive workplace culture, but also drives innovation
and success in our Company.
In 2025 we conducted a full review and update
ofourD&I strategy, and this has shaped the actions
ofour D&I Working Group, comprised of volunteers
froma range of roles and locations across the Group.
Good quality data is essential for understanding the
issues and tracking progress. In 2025, we created a
new quarterly D&I Dashboard, which provides insights
into diversity at all stages of the employee journey,
from recruitment through promotion to exit, and all
areas of the Group. This Dashboard provides
informative data to support our D&I strategy.
We have a strong emphasis in our recruitment on
transferable skills in order to encourage applicants from
other sectors, bringing diversity of thought and experience.
SAFE AND INCLUSIVE CONTINUED
2
INVESTING IN AN INCLUSIVE BUSINESS
PERSIMMON
SPONSORS
YORK PRIDE
On Saturday 7 June 2025, more than 25
Persimmon colleagues travelled from as far as
Cornwall to take part in York Pride, where we were
proud to be a gold-level sponsor.
York Pride is the largest free event in York, drawing
around 20,000 attendees. Our Persimmon Pride
community paraded in the Pride March from York
Minster, through the streets of York city centre, to the
festival site on the Knavesmire. This is the first time
we have taken part in this parade, made even more
meaningful as it is in the community in which our
headoffice is based.
Not only did our Persimmon Pride community lead
the procession through the streets of York, we also
hosted a stall at Knavesmire. There, we spoke with
community members and shared more about
building with pride at Persimmon, buying a home
with us and what we do in the local community. We
have agreed to sponsor the event again in 2026.
Image Source: Milner Creative
Sustainability continued
Financial statementsGovernance Other informationStrategic report48 – Persimmon Plc Annual Report 2025
Human rights
The Group has a strong commitment and fundamental
respect for human rights, defined within our comprehensive
suite of Group policies and procedures and embedded
throughout our operations. We regularly assess the
most significant potential human rights impact areas
within our operations to ensure our policies and controls
remain appropriate. The key human rights risk areas
identified have remained consistent with prior years,
and include workforce safety, labour and employment
rights of our employees and subcontractors, and supply
chain risks such as modern slavery.
Workforce safety
Ensuring the safety and wellbeing of our workforce,
and all those present in the areas in which we operate,
is of critical importance. The Group maintains comprehensive
health and safety management systems to mitigate the
inherent risks to safety in construction activities. These
systems are subject to regular internal inspections by
the Group Health, Safety & Environment (‘HS&E’)
department, which itself is regularly audited by
independent specialists within our Group Internal
Audit department. Further safeguards are provided
through the Safety and Environment Concerns
reporting telephone line and email address, details
ofwhich are displayed in all Group offices and at
allGroup construction sites.
Labour rights
The Group adheres to all UK legislation and regulations
in respect of labour rights. The Group HR department
monitors the legal and regulatory landscape to ensure
that systems and controls are in place to address any
changes as they arise. The Group is also a Living
Wage Foundation accredited employer, paying the
Real Living Wage (‘RLW’) to our employees and
promoting the adoption of the RLW through our
subcontractor base.
While the Group remains confident in these controls,
one concern of potential modern slavery was identified
in our operations in 2025. This concern related to labour
provided by a subcontractor at one site potentially not
having the right to work in the UK. Group and local
management teams supported enforcement agencies
in their investigation into thisconcern.
Further details on our measures to combat modern slavery
are set out within our most recent Modern Slavery
Statement, which is available on our websiteat
www.persimmonhomes.com/corporate.
Ethical business practices
We expect high standards of ethical behaviour
andintegrity from all employees and stakeholders
involved in our operations. This expectation is detailed
within our policies, including our Code of Ethics and
our Anti-Bribery and Corruption Policy, which are
reinforced through regular training. As a further safeguard
of human rights and ethical behaviour, we maintain a
comprehensive whistleblowing provision. This provides
a range of mechanisms through which employees and
others can raise concerns in confidence, anonymously
if needed. All whistleblowing reports are investigated
independently by the Group’s Internal Audit department,
with summary reporting provided to the Audit & Risk
Committee. We have continued our partnership with
the whistleblowing charity Protect, through which we
have further strengthened whistleblowing provision
through additional training and access to tools to
benchmark against best practices.
3
RESPECTING HUMAN RIGHTS ACROSS THEVALUECHAIN
Supply chain
As a housebuilder we operate solely within the UK,
with most of our first-tier supply chain and subcontractors
also being UK based. Nonetheless, the Group recognises
that the construction sector has a particularly high
exposure to modern slavery risk. In this context, we
have established robust controls and procedures to
reduce this exposure and to provide assurance that
ouremployees and suppliers continue to work to
thehigh standards we demand.
In 2025, we have continued our engagement with
organisations which provide access to intelligence on
modern slavery trends and good practice guidance.
This includes the CCLA-led ’Find it, Fix it, Prevent it’
initiative, and the Gangmaster and Labour Abuse
Authority (’GLAA’). Senior members of the Group’s
Management team have attended engagement events
with the CCLA to benefit from their expertise and
understand stakeholder concerns for our sector.
Theregular bulletins from the GLAA are also shared
with our teams to ensure than any relevant intelligence
can be acted upon promptly.
These actions have helped us further build our
comprehensive suite of controls. Controls include
regular audits on supply chain and increasing awareness,
led by our Group Internal Audit department. Awareness
posters are also in place at all sites, encouraging the
reporting of potential concerns via our whistleblowing
provision. Routine inspections and worker interviews
are carried out by the Group HS&E department, and
tailored training is in place for employees in Commercial,
Procurement and Construction functions. Site-based
workers also receive an annual training session via The
Persimmon Way App, which reached over 20,000 workers.
Persimmon Plc Annual Report 2025 – 49Financial statementsGovernance Other informationStrategic report
Non-financial and sustainability informationstatement
Reporting requirement Relevant policies and standards governing our approach
Where to read more
in this report and how
we manage the
associated risks
Environmental
matters
Climate change is considered a principal risk for the Group, as disclosed in our Climate Change Position Statement. Detailed information on the risks and opportunities posed by climate change can be
found throughout this report and our TCFD disclosures are set out on pages 59 to 69.
We recognise that our activities have an impact on the environment and that we have a responsibility to consider and minimise these impacts. This commitment is formalised through our Environmental
Policy, which forms a key part of the Group’s overall approach to sustainability.
Ensuring that we operate in a responsible way, and that we build homes and communities that are both efficient and sustainable, is fundamental to the continued success of our business. Our Sustainability
Policy outlines the Group’s three sustainability pillars that shape our approach to how we undertake our activities as a responsible developer.
See pages 30
to40, 59 to 69
and 73
Employees
Our HR strategy is well established and supports our ambition to become the employer of choice in the sector.
We place great emphasis on designing our developments and planning our work so that customers have a safe home to live in and our workers are kept safe whilst these homes are being built. Our Health
and Safety Policy sets out the Group’s health and safety aims and is implemented through our health and safety management system for our operational activities.
Our aim as set out in our Equality, Diversity and Inclusion Policy is to be an employer of choice and for our workforce to be truly representative of all sections of society and our customers, and for each
employee to feel respected while realising their full potential.
See pages 25
to27 and 73
Social matters
Transforming communities is just one of the sustainability pillars outlined in our Sustainability Policy that shape our approach to how we positively transform communities directly connected to
Persimmon’sactivities.
Our charitable activities (including our Community Champions initiative and Persimmon Charitable Foundation) support good causes across Great Britain. We also ran a range of community events as
part ofour ongoing partnership with Team GB, along with other great initiatives. More information on this is available on our corporate website.
See pages 41
to44 and 17
Human Rights
We are committed to treating our employees, customers, suppliers and business partners in a fair and respectful manner. Our Human Rights Policy sets out the standards to which we will operate to ensure
these rights are upheld throughout our businesses and operations.
Our Modern Slavery Statement sets out the steps taken by us to prevent modern slavery and human trafficking within the Group’s business and its supply chain.
We expect our suppliers and supply chain to join us in working as sustainably and ethically as possible, which is why we require all our suppliers to comply with our Supplier Principles.
See page 49
Anti-corruption
andanti-bribery
Our aim is to maintain a culture within the Group in which bribery and corruption are never seen as acceptable behaviours. Our Anti-Bribery and Corruption Policy outlines our approach to the prevention
of bribery and corruption, as an extension to our Code of Ethics.
We value our reputation for complying with all aspects of UK tax law, so we have taken steps to make sure we do everything in our power to prevent the facilitation of tax evasion, as set out in our policy on
Preventing and detecting tax evasion.
We have a policy of not tolerating, and of preventing fraud. To support this, the Group has implemented a Preventing Fraud Policy to ensure a culture in which fraud is not seen as acceptable and to
reinforce the importance of fraud prevention among employees, agents, consultants, customers, suppliers, and subcontractors.
To reflect the importance we place on ethical behaviour, we uphold a strong Whistleblowing Policy that provides secure and confidential channels for employees and stakeholders to safely report any
concerns of suspected wrongdoing within our operations.
See pages
49and 95
Non-financial KPIs
We measure a number of non-financial KPIs to ensure the business is effectively managing its responsibilities. See pages 20
to21
KEY MATTERS AND
WHERE TO FIND THEM
The following section of our Strategic Report constitutes Persimmon Plc’s non-financial and sustainability
information. This statement has been prepared to comply with sections 414CA(1) and 414CB(1) of the Companies
Act 2006, to provide an understanding of the Group’s development, performance and position and the impact of
our activities. Information regarding non-financial matters is also included throughout our Strategic Report.
An overview of our business model is set out on page 8
Our policies are available on our website www.persimmonhomes.com/corporate/sustainability/policies-and-statements
Our principal & emerging risks are set out on pages 70 to 76
Financial statementsGovernance Other informationStrategic report50 – Persimmon Plc Annual Report 2025
Section 172 statement
ENGAGING WITH
OUR STAKEHOLDERS
The following disclosure forms the Directors’ statement required under section
414CZA of the Companies Act 2006. Set out below is a summary of how the
Board considered its duties under Section 172(1) (a) to (f) throughout the year.
2
EMPLOYEES
3
COMMUNITIES
4
SUPPLIERS AND
SUBCONTRACTORS
5
SHAREHOLDERS
1
CUSTOMERS
6
GOVERNMENT,
REGULATORS AND
INDUSTRY BODIES
OUR
STAKEHOLDERS
Section 172(1) How the Board considered its duties
The likely consequences of any decision
in the long term
·
Our markets
·
Our business model
·
Principal and emerging risks
·
TCFD
·
Viability statement
see pages 6 and 7
see page 8
see pages 70 to 76
see pages 59 to 69
see pages 77 to 79
The interests of the Group’s employees
·
Our people and culture
·
Stakeholder engagement: employees
·
Principal and emerging risks
·
Sustainability: safe and inclusive
see pages 25 to 27
see page 53
see pages 70 to 76
see pages 45 to 49
The need to foster the Group’s business
relationships with suppliers, customers
and others
·
Our strategic framework
·
Our business model
·
Sustainability: transforming communities
·
Stakeholder engagement
see page 1
see page 8
see pages 41 to 44
see pages 51 to 57
The impact of the Group’s operations on
the community and the environment
·
TCFD
·
Principal and emerging risks
·
Sustainability: building for tomorrow
·
Sustainability: transforming communities
see pages 59 to 69
see pages 70 to 76
see pages 30 to 40
see pages 41 to 44
The desirability of the Group maintaining
a reputation for high standards of
business conduct
·
Our business model
·
Audit & Risk Committee Report
·
Principal and emerging risks
see page 8
see pages 108 to 114
see pages 70 to 76
The need to act fairly as between
stakeholders of the Group
·
Capital Allocation Policy
·
Other disclosures
·
Stakeholder engagement
·
2026 Annual General Meeting
see page 24
see pages 115 to 117
see pages 51 to 57
see page 95
To implement our key priorities and to promote the success of the Company, we aim to
build strong relationships with all of our stakeholders. We regularly engage with our
key stakeholders to understand what matters most to them, how we can meet their
interests and the likely impact of Board and management decisions.
The Board receives regular updates on stakeholder engagement at Board meetings.
There are a number of standing agenda items in order that the Board can review
progress against our key priorities and their impact on our key stakeholders. TheBoard
also engages directly with key stakeholders, particularly shareholders andemployees.
Our key stakeholders, how we engaged with them and the results ofthat engagement
are set out on the following pages.
Persimmon Plc Annual Report 2025 – 51Financial statementsGovernance Other informationStrategic report
1
CUSTOMERS
Engaging with our customers helps us to be
aware of their changing needs and ensure our
homes are well positioned in the market.
It also enables us to measure how we are achieving our aim of
delivering high-quality, sustainable homes and excellent customer
service. Engaging with our social housing partners ensures that we
provide the appropriate range of affordable homes to meet the needs
of local communities. In addition, we engage with the growing
institutional investor and Private Rental Sector (‘PRS’) market.
Maintaining positive relationships with all of our customers minimises
reputational risk for the Group and will help to increase long-term
demand for our homes.
How do we engage?
We communicate with our customers in a number ofways:
·
Our sales staff are in regular contact with our customers from the
point of reserving their new home to moving in day and beyond.
·
We have a comprehensive communication approach for each
customer including both before and after their moving in date.
·
Our site teams attend various touchpoints with our customers in the
lead up to and immediately after legal completion.
·
We participate in two national new homes surveys run by the National
House Building Council (’NHBC’)
to obtain independent feedback from
our customers.
·
Our customer care teams support our customers once they have
moved into their new home.
·
We engage with our social housing and PRS partners through regular
contact and meetings.
·
We have a dedicated team of social media community managers
who engage with our customers online, 365 days a year.
What did our customers tell us?
Feedback Outcome and effects on Board decisions
Affordability
Our customers want attractively
priced, sustainable and
energy-efficient homes.
Our Persimmon private average selling price is c.19% lower than the UK national average for new build homes,
widening the opportunity for home ownership to thousands of families and first-timebuyers. During the year, we
launched two new products, New Build Boost and Rezide, to support our customers in overcoming affordability
challenges through an interest-free loan covering 15% of the purchase price.
Accessibility
Our customers want to be able
to communicate with our teams
quickly and easily, at times and
in ways convenient to them.
Customers value a blend of
digital and interpersonal
customer experiences.
We have increased our investment in our customer experience function, including in digital technology and training. As
part of our Customer Experience Vision to digitally enable our customers’ experience, our new Customer Relationship
Management (’CRM’) system, which is scheduled to launch in summer 2026 will enable us to better understand and
serve our customers by centralising information, streamlining communication, and enhancing our ability to collaborate
across teams. Further enhancements will be introduced in the coming year.
Choice
Our customers want a range of
home options that meet their
evolving needs.
Our three strong brands (Persimmon Homes, Charles Church and Westbury Partnerships) offer our customers a range
of choice and value in their respective markets. This year, we have taken the opportunity to refresh the Charles Church
brand to reflect our customers’ changing demands and aspirations. By recognising the different customer segments
across our brands – and tailoring our homes accordingly – we aim to deliver a consistently high-quality experience
that better reflects the communities we serve.
Quality
Our customers expect
high-quality homes.
We have continued to invest in and progress ‘The Persimmon Way’, our Group-wide consolidated approach to new
home construction, which is considered to be a key driver to deliver consistent quality across our business.
How do we measure the effectiveness of our engagement?
The following metrics are regularly reviewed by the Board when considering progress against our
key priorities:
Persimmon Homes
Trustpilot score
4.6
(2024: 4.5)
Our score continues to improve,
reflecting our improved customer
service and brand reputation.
HBF customer
satisfaction survey
scores
The HBF surveys represent our
key customer service metric.
Wewere proud to awarded
five-star builder status in 2025.
Our recommend a friend survey
score was 93.5% and our HBF
combined score was 4.30 for
the2024/25 survey year.
Number of
homes sold
11,905
(2024: 10,664)
new homes in 2025, an increase
of 12% on last year.
Monitoring site
visitors and website
traffic levels
We monitor the number of visitors
to our sites to assess the level of
interest in our developments. We
also track web traffic to better
understand how users interact
with our content, helping us
improve overall engagement.
NHBC
Reportable Items
0.29
(2024: 0.26)
Our NHBC Reportable Items
remain at a low level, reflecting our
focus on build quality.
Speed of resolution of
any customer issues
We are improving our customer
care tooling in order to continue
to improve our service and speed
of resolutions. Dealing with
customer issues promptly and
effectively is a key focus area.
Links to our strategic framework
1
Build quality and safety
2
Customers at the heart of our business
5
Supporting sustainable communities
A CONFIDENT FIRST STEP
ONTO THE PROPERTY LADDER
Aidan and Abigail were the first customers to move into the
final phase at Hartnells Farm, choosing the development
as their first home. For them, becoming homeowners feels
like a major achievement.
Aidan praised the support they received throughout their
“seamless” journey: “The sales process couldn’t have been
any easier… It was an amazing experience and it’s great
to be moved in time for Christmas.” He added, “If you put
your mind to it and you really want it, the whole buying
process is worth it in the end.”
Section 172 statement continued
Financial statementsGovernance Other informationStrategic report52 – Persimmon Plc Annual Report 2025
2
EMPLOYEES
We aim to attract and grow a talented
and diverse workforce, believing this
to be fundamental tothe long-term
success of the business.
Engaging with the workforce significantly contributes to the
success and wellbeing of both the business and our employees.
Engaged employees are more likely to be motivated and
committed to their work, leading to higher levels of productivity
and increased innovation and creativity. Engagement leads to
stronger team collaboration, better communication and
creates a positive culture which enhances customer satisfaction.
Engaging with our employees also helps ensure they understand
and align with the Group’s strategy, mission, vision and values
and helps us to understand the changing needs of our
workforce, to better attract, develop and retain employees.
How do we engage?
Through our Employee Engagement Panel, meeting regularly
throughout the year. Each meeting is chaired by our Chief HR
Officer; Board Directors frequently attend. The Chairman,
Designated Workforce Non-Executive Director and Chair of the
Remuneration Committee attended Panel meetings in 2025.
·
Through our intranet and improved internal communications
to all employees on matters such as our business activities
and priorities, the achievements of our business and our
employees, and our work in local communities.
·
Through Employee Engagement Surveys and the resulting
actions and plans.
·
Through our employee network groups.
·
Through our Health, Safety and Environment department
and increased online training.
·
Through role-specific conferences.
·
Through Board member attendance at the Group’s
Leadership Development Programme.
·
Through Board dinners, attended by the Group’s senior
executives, new graduates and other invited employees.
How do we measure the
effectiveness of our engagement?
·
Feedback from the Employee Engagement Panel.
·
Reports from the Chief HR Officer.
·
Through the results of our annual Employee Engagement Survey.
·
Through our customer satisfaction surveys and
qualitymeasures.
What did our employees tell us?
Feedback Outcome and effects on Board decisions
Inclusivity
and
wellbeing
Our employees
want a
workplace that
is inclusive and
supportive.
Inclusivity and employee wellbeing remains central to our culture. We are committed to fostering an environment where all employees feel valued,
respected, and empowered. Around 80% of employees feel that they can be their authentic selves at work, while 79% recognise that people from all
backgrounds have equal opportunities to succeed.
Managers are valued for the support that they provide to their teams, with 84% of employees feeling that their manager genuinely cares about their wellbeing.
Wellbeing is an area of increased focus. We improved communications to promote employee wellbeing, including our Employee Assistance Programme
andmental health communications were issued to site-based employees during the year.
We have continued to invest in and develop our Talent and Diversity and Inclusion strategies. Throughout the year, the Group has made progress on
embedding equality, diversity and inclusion, with bespoke mentoring intervention supporting up-and-coming female and ethnic minority colleagues.
From the success of our current network groups, we have introduced two new groups: the Religion and Culture Network Group, promoting cultural
awareness and inclusion across the Group; and the Carers Network Group, designed to support employees with caregiving responsibilities.
Our disability awareness and support programs are being expanded to foster inclusivity and provide better support for our employees with disabilities.
Recognition
Recognition is
important, and
employees
want to feel
valued and
appreciated.
We are committed to fairly rewarding our employees and celebrating excellence through recognition at our annual Persimmon Excellence Awards ceremony.
Oursiteteams, supported by colleagues across all departments, are actively encouraged to work towards recognition such as the NHBC Pride in the Job and Premier
Guarantee’s Quality Recognition Award. We also have our internal ‘Persimmon Praise’ tool, providing the opportunity to acknowledge and celebrate colleagues.
As part of our commitment to valuing and supporting our employees, we continue to strengthen employee experience through formulated bespoke development
programmes, designed to provide support and guidance from early careers through to executive development. This year, we launched a mentoring scheme
connecting over 100 colleagues, refreshed our Performance Development Review model, and expanded development opportunities through targeted
secondments and stretch projects, such as our AI working group.
We continue to be an accredited Living Wage Foundation employer, reinforcing our dedication to fair and equitable reward.
IT
improvement
Our employees
want better IT
systems to do
their jobs.
Our IT improvement programme is now complete.
Over the last two and a half years, we have strengthened our digital foundations across the Group. This progress was achieved by close collaboration
witha team of over 100 colleague IT champions and acting on feedback from colleagues across the Group. We encourage ongoing feedback to help
uscontinue improving our digital environment.
Roadmap of key engagement activities
March 2025
Pride Network Meeting,
Employee Engagement Panel,
Women’s Network Group:
International Women’s Day
May 2025
Employee Engagement Survey 2025, Women’s Network Group:
Webinar with Alexandra Depledge (Non-Executive Director),
Annual Persimmon Excellence Awards ceremony,
Leadershipconference
June 2025
Employee Engagement
Panel Meeting, Persimmon
Pride, Board site visit
October 2025
Board site visit
November 2025
International Men’s Day
webinar, Employee
Engagement Panel Meeting
July 2025
Pride Network Meeting
September 2025
Employee Engagement
Panel Meeting
Links to our strategic framework
1
Build quality and safety
2
Customers at the heart of our business
5
Supporting sustainable communities
Persimmon Plc Annual Report 2025 – 53Financial statementsGovernance Other informationStrategic report
3
COMMUNITIES
Engaging with our local communities,
throughout all phases of a development,
more accurately identifies their needs
and helps us to meet those needs.
During this collaboration, we aim to address any planning
and technical issues in order that the impact of our
activities on local communities is minimised, including
using planning and environmental risk assessments.
How do we engage?
·
Being actively involved in the communities in which
we operate, through employing local people and
supporting local charities and community groups
through our Community Champions initiative and the
Persimmon Charitable Foundation.
·
Through our External Affairs team.
·
Feedback from our local pre-launch marketing campaigns.
·
Proactive engagement and consultation throughout
theplanning and development process of each of
ourdevelopments.
·
Regular engagement with planning authorities.
·
The Board receives bi-annual updates from the
GroupStrategic Land Director and the Group
Sustainability Director.
How do we measure the
effectiveness of our engagement?
·
Speed of achieving planning consents and ability
tounlock blocked consents.
·
Through the impact of our Community Champions initiative.
·
Through the quality of our developments and our ability
to demonstrate how local priorities have been met.
·
Reports from the Group Director of Strategic
Partnerships andExternal Affairs.
·
Delivering targets for Health and Safety and Sustainability.
Links to our strategic framework
1
Build quality and safety
2
Customers at the heart of our business
5
Supporting sustainable communities
What did our communities tell us?
Feedback Outcome and effects on Board decisions
Sustainability
Affordable homes with lower
running costs and better energy
efficiency.
We focus on sustainability by trialling low-carbon building methods to meet regulatory and environmental objectives. In line with the Future
Homes Standard and New Build Heat Standard in Scotland, we have developed energy transition plans for all our developments. We are
continuing to utilise low-carbon designs and heating solutions, such as air source heat pumps, ahead of regulatory requirements to help us
achieve our target of zero carbon ready homes in use by 2030.
Infrastructure
investment
Local infrastructure investment is
important in improving
community environments.
Supporting sustainable communities is a key priority for the Group. Our Placemaking Framework has improved the guidance and tools for our
Planning and Design teams. Our new developments feature enhanced green spaces, such as allotments and orchards to promote wellbeing.
Weare proud to create spaces that bring communities together.
Community
involvement
To be an active part of the
community through supporting
local charities, sports clubs and
community groups.
We help to support our communities by making donations to local charities, sports clubs and community groups in the areas where
weoperate. During the year, the Group donated c.£1.1m to charities, sports clubs and local community groups across the country.
Ourpartnership with Team GB allowed us to welcome athletes to a number of our events, from show home openings to inspiring meet
andgreets in the communities we created.
Engage with
local feedback
To be positive and responsive
to the views of local people.
We engage with our local communities and local planning authorities through the development process of our sites to ensure that they
willmeet local needs.
Fire safety
concerns in
high rises
Leaseholders and occupants
ofhigh-rise buildings have
beenconcerned with fire
safetyissues.
We remain dedicated to our building safety remediation programme and have demonstrated our commitment to dealing with the programme
diligently and swiftly. We continue to ensure that leaseholders are not financially impacted by the costs associated with necessary cladding
removal or fire safety remediation in buildings constructed by the Group. We have maintained our proactive approach, working closely
withmanagement companies, factors (in Scotland) and their agents to carry out necessary remediation as soon as possible. Recognising
theimportance of building safety, we are pleased to report that we have begun or finished work on 77% of identified developments.
Weremain on track to complete most of the required work over the course of the next two years.
c.£1.1m
donated to charity and
communitygroups in 2025
c.1,328
homes now feature low-carbon
heating solutions, instead
oftraditional gas boilers,
comparedwith 671 in 2024
c.£2.3bn
investment in local communities
(over5years)
541 acres
Public open spaces and
gardensprovided for families
PERSIMMON SUPPORTS
16,600 CHILDREN AT CHRISTMAS
The Persimmon Charitable Foundation provided support to Cash for Kids North
&West Yorkshire’s Mission Christmas appeal. Thanks to this partnership, Mission
Christmas was able to help 16,600 local children, ensuring they received a present
on Christmas Day. This vital assistance has made a real difference to families in
need, giving hope and joy to children who might otherwise have gone without.
Section 172 statement continued
Financial statementsGovernance Other informationStrategic report54 – Persimmon Plc Annual Report 2025
Engagement with our suppliers and subcontractors assists
us in continuing to improve the long-term sustainability of
our supply chain.
The Group continues to benefit from established long-standing relationships with many of its
suppliers and subcontractors. The focus of the business is to secure a robust and resilient supply
chain that can service the continued growth of the Group. Health, safety and environmental
standards, ethical behaviour and integrity are key requirements of suppliers and subcontractors’
engaged by the Group. By regular review and feedback, we ensure high standards are maintained.
Our engagement is underpinned by continued application of our framework agreements. Via our
supplier performance questionnaires and IQC audits, we have collated key performance metrics
which have enabled us to provide feedback, identify performance trends, compliance levels,
risks and assess the effectiveness of our supplier relationships, supporting robust governance
and supply chain resilience.
How do we engage?
·
Quarterly business reviews and regular informal discussions with our key suppliers through
our Group Procurement team, which is responsible for arranging and negotiating Group
framework agreements and service-level agreements to ensure our suppliers understand
andcomply with our standard terms.
·
Our ‘Toolbox Talks’ help to ensure our subcontractors understand and adhere to the health
and safety standards required on our sites.
·
We are partners to the Supply Chain Sustainability School which encourages and enables
engagement across the supply chain.
·
Our local operating businesses’ Buying and Technical teams regularly engage with local
suppliers and subcontractors.
·
All strategic suppliers use a shared performance dashboard that includes forecasting
delivery service level KPIs
·
All Group suppliers sign up to the Group’s Supplier Principles and equivalent Group policies,
which describe our requirements and expectations.
·
We are part of the Future Homes Hub Whole Life Carbon Oversight Group.
How do we measure the effectiveness
ofourengagement?
·
The Group Procurement department provides routine monitoring of trends and supplier performance.
·
Through partnership longevity: the Group’s Procurement team is responsible for managing
the strong, long-standing relationships we hold with our main suppliers.
·
Through routine principal risk reporting to the Audit & Risk Committee, including regular analysis
of material purchasing trends and key issues.
·
Through the reporting to the Management Risk Committee on key supply chain issues.
What did our suppliers and subcontractors tell us?
Feedback Outcome and effects on Board decisions
Collaborative
innovation
Our suppliers and subcontractors want to work collaboratively to identify
innovative solutions and alternative products to support changes to statutory
requirements and building regulations (such as the transition to the Future
Homes Standard) and delivery of our objectives.
Our tendering processes have been
strengthened through standardisation of
ourprocurement process, greater central
oversight and an expanded use of
frameworkagreements.
We seek to secure Group-wide deals covering
all major elements of our construction process.
These relationships andagreements enable the
Group to have consistent standards of quality,
security of cost and supply of materials whilst
providing our suppliers with certainty over
volumes, revenues and cash flows.
We have signed up to the Future Homes
Hub‘Homes for Nature’ commitment.
We have also been engaging with our suppliers to
assess the embodied carbon of our house types in
order to identify materials with the most impact.
Supply chain
optimisation
Material delivery monitoring and reporting is important, to support
compliance and identify opportunities for the reduction of excess stock to
develop a robust supply chain, while remaining diligent in preventing modern
slavery and protecting human rights.
Supply chain
monitoring
They continue to monitor the impact of global supply chains and price-sensitive
impacts to enable continued service delivery, collaborating with manufacturers
to implement risk mitigation measures and prioritising responsible sourcing
and human rights protection.
Supply chain
forecasting
The Group works in partnership with its suppliers, providing material demand
forecasting, with periodic updates detailing any variations. This ensures
continuity of supply, providing continuity and visibility of future workflows.
Links to our strategic framework
1
Build quality and safety
2
Customers at the heart of our business
5
Supporting sustainable communities
LANCASHIRE REGION HOSTS
SUPPLY CHAIN CONFERENCE
In November 2025, our Lancashire region hosted
aSupply Chain Conference, bringing together
c.100subcontractors and suppliers to strengthen
collaboration. The event focused on key themes
including build quality, health and safety, technical
standards, planning, commercial processes, and
growth. Attendees engaged with regional leaders,
reinforcing our shared commitment to safe working
practices, efficient delivery and customer-focused
outcomes. The seminar also provided an opportunity
torecognise high-performing partners, further
strengthening relationships and aligning the supply
chain with our strategic priorities.
4
SUPPLIERS AND SUBCONTRACTORS
Persimmon Plc Annual Report 2025 – 55Financial statementsGovernance Other informationStrategic report
5
SHAREHOLDERS
Access to capital is important for the
long-term success of the business.
Through our engagement we aim to create investor
understanding of our core focus areas and how we execute
them. We create value for our investors by investing for growth
and generating surplus capital beyond
the reinvestment needs
of the business as the market cycle develops
.
How do we engage?
·
The Executive Directors and IR Director hold regular
meetings with analysts and investors as part of the Group’s
reporting cycle.
·
We hold regular shareholder roadshows. In addition,
throughout the year, the Executive Directors and IR Director
participate in calls, investor conferences and site visits to
meet prospective and existing investors.
·
All Board members attend the Company’s Annual General
Meeting, where the Chairman and Group Chief Executive
update shareholders, and we conduct the vote on
resolutions by poll.
·
The Chairman and Committee Chairs are also available
toattend meetings with major shareholders to gain an
understanding of any issues and concerns.
How do we measure the
effectiveness of our engagement?
·
There is a regular update from the IR Director to the Board
reporting on changes to the shareholder register, share
price movement and summarising feedback from
shareholders and analysts.
·
We obtain feedback from the Company’s brokers, market
analysts and shareholder groups, which is regularly shared
with the Board.
·
Movement on the share register.
·
Share price relative to the sector.
What did our shareholders tell us?
Feedback Outcome and effects on Board decisions
Board diversity
and succession
Requirement of a diverse Board and
pipeline of talent for succession to
executive positions.
The Group maintains a rigorous process for each Board appointment, led by the Nomination Committee. The Group engages with
external search firms specialising in executive recruitment, where appropriate. Throughout the year, the Nomination Committee continued
to exercise oversight of the Group's equality, diversity & inclusion activities, and succession planning.
Sustainable
capital returns
Our shareholders have a preference
for a sustainable dividend and
continued investment for growth.
We recognise the importance of sustainable returns for our shareholders, reinforced through our Capital Allocation Policy. For 2025,
theBoard approved an interim dividend of 20p per share and has recommended a final dividend of 40p per share.
Fair pay
Our shareholders are committed to
fair pay for the whole workforce.
The Group is committed to providing all employees with opportunities to reach their full earning potential. As an accredited Living
Wage Foundation employer, we continue to pay the Real Living Wage. Wider workforce remuneration remains a key focus for the
Remuneration Committee. During 2025 the Remuneration Committee reviewed the Directors’ Remuneration Policy, consulting with
major shareholders (representing 52.6% of the share register) and leading proxy advisors, in advance of requesting shareholder
approval for the new Policy at the 2026 AGM.
Links to our strategic framework
1
Build quality and safety
2
Customers at the heart of our business
3
Disciplined growth: high-quality land investment
4
Industry-leading financial performance
5
Supporting sustainable communities
100.7p
Underlying basic earnings per
sharefor the year, being 9%
higherthan 2024
60p
total dividend for the year
c.400
interactions with investors
duringtheyear
INVESTOR VISIT TO SPACE4
As part of our ongoing commitment to shareholder engagement, we regularly organise site visits for
both our current and prospective investors. These visits provide valuable opportunities for investors to
observe our operations first-hand and to gain insights into our latest developments.
In November 2025, we hosted a group of investors from Malaysia, taking them onaguided tour
ofour new production lines that had recently been installed at the Space4 factory in Birmingham.
Thisinitiative reflects our dedication to transparency and fostering strong relationships with our
investorcommunity.
Section 172 statement continued
Financial statementsGovernance Other informationStrategic report56 – Persimmon Plc Annual Report 2025
What did the Government, regulators and industry bodies tell us?
Feedback Outcome and effects on Board decisions
Cyber
Security
The Government
wrote a letter to
allmajor UK
businesses in
2025regarding
“making cyber
security a board
responsibility”.
The Group has focused on strengthening its cyber and control environment. The
Audit & Risk Committee received regular updates from the Group’s Chief Information
Officer and Chief Information Security Officer, including regarding the Group's
attainment of the Cyber Essentials Plus certification, the Group's response to the
Government's cyber security letter, and internal audit reports on IT and cyber risk.
The Committee also received regular updates on improvements to business continuity,
including scenario testing and offline fallback processes. These measures help
ensure key processes remain resilient in the event of a cyber attack ora major
operational disruption.
New homes
target
The Government
iscommitted to
anambitious
housebuilding
target, delivering
1.5m new homes
across this Parliament.
We have increased new land investment in recent years and improved our approach to
planning to grow our active outlets year on year. During the year, we achieved planning
on 12,815 plots, exceeding targets and showing resilience despite policy uncertainty.
Building
Remediation
The Government
has introduced
theRemediation
Acceleration Plan,
to target an increase
in the pace of
remediation
acrossthe sector.
The Group remains committed to the Government’s Remediation Acceleration Plan
aimed at accelerating progress on building safety remediation. As part of this joint
initiative, the Group agreed to meet accelerated targets on eligible buildings’ assessment
and works starting.
The Group is already well-advanced in the remediation programme and aims to complete
works on the majority of buildings over the course of the next two years. This commitment
builds on the Group’s self remediation contracts with the English, Welsh and Scottish
Governments to protect leaseholders from the financial burden of necessary cladding
removal and other life-critical safety issues on buildings constructed by the Group.
HS&E
expertise
It is essential to
maintain a skilled
and well-resourced
Health, Safety and
Environment
Department.
Training is key to mitigating health and safety risks, with all workers and subcontractors
receiving extensive training. HS&E modules and Toolbox Talks are regularly delivered
using Group-wide materials, with topics tailored based on ongoing performance monitoring.
In our most recent employee survey, 85% of employees reported that they had received
sufficient training to perform their work safely, further reinforcing the effectiveness of
ourapproach.
Building on last year’s Target Zero campaign aimed at raising safety awareness and
accountability, we launched our first Safety Week to strengthen Target Zero, with a focus
on manual handling, dust control and our THINK mindset: Team, Health, Incidents,
Notice and Knowledge.
Our Building a Safer Future Chartered Champion status was retained in 2025, providing
independent verification of our leadership and safety culture. A Health and Safety
performance metric continues to form part of the Executive Director’s annual bonus,
reflecting the Group’s continued focus on ’Target Zero’.
Community
engagement
To reflect the views
of local authorities
and communities in
the plans we develop.
We work with landowners, local communities, and planning authorities to address housing
needs and foster positive relationships.
Bydelivering new housing in areas of greatest
need, we support local employment and make valuable contributions to local infrastructure.
We engage with national and
localgovernment and public bodies
regarding policy that could affect
theGroup.
We meet with local councillors and local authority planning
departments to understand their priorities to ensure we are
able to create sustainable communities where people wish to
live and work. We engage with the Health and Safety Executive
in relation to industry-wide initiatives to reduce health and
safety risks to both our workforce and local communities.
How do we engage?
·
Extensive engagement with local councillors and local
planning authorities led by our External Affairs team.
·
We are a member of the Home Builders Federation and
Homes for Scotland. Additionally, Dean Finch, Group Chief
Executive, sits on the Board of the Home Builders Federation.
·
We engage with government departments directly and, as
members, work with the Home Builders Federation and Homes
for Scotland, to explain industry opportunities and challenges.
·
By participating in industry meetings with Ministers.
·
Regular dialogue with Homes England and with the Health
and Safety Executive.
How do we measure the
effectiveness of our engagement?
·
The Board receives updates from the Group Chief Executive
and Group Director of Strategic Partnerships and External
Affairs regarding direct engagement with government,
Homes England and the Home Builders Federation.
·
Our engagement has led to an enhanced planning approach.
Links to our strategic framework
1
Build quality and safety
2
Customers at the heart of our business
5
Supporting sustainable communities
12,815
plots achieving detailed planning in2025
310bps
improvement in our NHBC
Construction Quality Review score
2,075
homes delivered to housing associations,
up 31% on the prior year
FIRST MINISTER OF
WALESVISIT
We welcomed the First Minister of Wales
(pictured third from right) and senior leaders
from Pembrokeshire County Council to our
new development in Saundersfoot. Once
complete, the site will deliver 72 much-needed
homes, including 25 affordable properties
for rent and shared ownership in partnership
with Pembrokeshire County Council. During the
visit, we discussed key topics with the First
Minister, including the housing crisis, nitrates,
Help to Buy, and the Welsh planning system.
6
GOVERNMENT, REGULATORS AND INDUSTRY BODIES
Persimmon Plc Annual Report 2025 – 57Financial statementsGovernance Other informationStrategic report
Principal decisions
We define principal decisions as
both those that are material to the
Group and also those that are
significant to any of our key
stakeholder groups. In making the
following principal decisions the
Board considered the outcome from
its stakeholder engagement (pages
51 to 57) as well as the need to
maintain a reputation for high
standards of business conduct and
the need to act fairly between
members of the Company. A
description of principal decisions
made by the Board during 2025
and to the date of this report is
provided across.
Further information regarding the main activities of the
Board during the year are set out on pages 88 to 90
Sale of FibreNest
Stakeholders affected by the decision:
1
2
3
5
During the year, the Board approved the sale of
FibreNest, our non-core full fibre broadband service,
to BUUK Infrastructure. The sale generated a profit on
disposal of £11.1m with a net cash receipt of £68.1m
received on completion. The sale also removes the
need for the ongoing investment that FibreNest
wouldhave required in the coming years, providing
additional capital for the Group to allocate to deliver
its medium-term growth ambitions and to invest further
in its growth strategy.
Competition and Markets
Authority (‘CMA’)
Stakeholders affected by the decision:
1
2
5
6
The Group has worked constructively with the CMA
throughout its investigation into suspected breaches of
competition law, relating to the exchange of competitively
sensitive information, by seven housebuilders,
including Persimmon.
In July 2025, the Group, alongside the other housebuilders
under investigation, voluntarily offered commitments in
response to the potential concerns investigated by the
CMA. The commitments include an ex-gratia financial
contribution of £100m to the government's Affordable
Homes Programme, of which the Group’s proportionate
contribution was £15.2m. The CMA accepted these
voluntary commitments. The Group’s decision to offer
these voluntary commitments does not constitute an
admission of any wrongdoing nor does it imply
agreement with the concerns expressed by the
CMAduring the investigation.
Capital Allocation Policy
Stakeholders affected by the decision:
2
5
The Board recognises the importance of sustainable
dividends for shareholders and will continue to prioritise
value creation from a strong return on capital. The Board’s
Capital Allocation Policy follows the following key principles:
·
Invest in the long-term performance of the Company
by ensuring the business retains sufficient capital to
continue our disciplined and appropriately timed
approach to land acquisition.
·
Operate prudently, with low balance sheet risk,
anda continued focus on achieving a superior
return on capital.
·
Ordinary dividends will be set at a level that is
wellcovered by post-tax profits, thereby balancing
capital retained for investment in the business with
those dividends.
·
Any excess capital will be distributed to shareholders
from time to time, through a share buyback or
special dividend.
The Board announced an interim dividend of 20p per
share in August 2025, which was paid on 7 November
2025. The Board has also recommended the payment
of a final dividend of 40p per ordinary share for the
year ended 31 December 2025 to be paid on 10 July
2026. Indetermining the capital returns, the Board
considered the ongoing performance of the business
and prevailing market conditions. The Group’s capital
allocation policy is to deliver sustainable returns to
shareholders by investing in future growth through the
disciplined expansion of our land portfolio while
maintaining a strong balance sheet. The Board expects
to review this policy once the building safety
remediation programme is substantially complete.
Our Stakeholders
1
Customers
2
Employees
3
Communities
4
Suppliers and subcontractors
5
Shareholders
6
Government, regulators and industrybodies
Financial statementsGovernance Other informationStrategic report58 – Persimmon Plc Annual Report 2025
TCFD
TASK FORCE ON CLIMATE-RELATED
FINANCIAL DISCLOSURES (’TCFD’)
The Board acknowledges the
existence of a global climate
emergency and recognises the
inherent risks and opportunities
thatclimate change presents
totheGroup’s business model
andstrategic direction.
As climate change is regarded as a principal risk to the
Group, we are committed to providing climate-related
disclosures that are fully aligned with the latest
recommendations of the Task Force on Climate-related
Financial Disclosures (’TCFD’). We remain dedicated
to continually enhancing our reporting in accordance
with these evolving requirements. During the year, we
undertook a comprehensive review of the forthcoming
requirements set by the International Sustainability
Standards Board (’ISSB’) IFRS S2.
Building upon our prior climate risk assessments,
weconducted a more detailed transition risk analysis
to financially quantify the key material transition risks
facing the Group. This approach has deepened our
understanding of the potential financial impacts
resulting from changes in policies and regulations,
fluctuations in greenhouse gas emissions pricing,
volatility in raw material costs, energy expenditure,
and possible supply constraints. The specialist risk
management consultancy Willis Towers Watson
(’WTW’) provided crucial support with the analysis
and modelling of these risks.
In addition, we completed an internal review of the
Group’s physical climate risks. The outcome indicated
no material change to our assessment this year, given
the long-term nature of most physical climate impacts.
Looking ahead, we intend to revisit and update our
physical climate risk assessment in 2026, ensuring our
understanding and mitigation measures remain current
and robust.
Our commitment to reducing carbon emissions
spansboth our operations and the entire value chain.
We have developed a clear decarbonisation pathway
with the ambition to become a net zero carbon business
by 2045. To underpin this, we have already established
and received approval for science-based targets to be
achieved by 2030: a 46% reduction in operational
emissions from a 2019 baseline, and a 22% reduction
in the carbon intensity of our indirect emissions (including
homes in use and goods and services) per square metre
of completed floor area, using a 2019 baseline.
Furthermore, we aim to ensure our homes in use are
zero carbon ready by 2030. Work is ongoing to
further define long term reduction targets through to
2045,
with the expectation of achieving at least a 90%
reduction
in emissions. Any remaining emissions will be
offset or neutralised using an appropriate mechanism.
Achieving this level of carbon reduction will necessitate
system-wide change across multiple sectors, with a
particular focus on the decarbonisation of the energy
grid and fostering collaborative relationships throughout
our supply chains.
Our Net Zero Carbon Transition Plan (see pages
31to34) sets out our comprehensive strategy for
reducing both direct operational emissions and
indirect emissions arising from our homes in use and
our supply chain. Performance against the key metrics
of this plan is detailed on page 68.
1
Governance
Climate change is considered a principal risk for the
Group and, as such, it is governed and managed in
line with our risk management framework.
Seepage 71 for further details
The Board has overall responsibility for the management
of risks and opportunities arising from climate change
and, on an annual basis, undertakes a Group-wide
risk review, which includes consideration of climate
risk. In particular, the Board has taken an active role
inunderstanding the impacts of future legislation with
a focus on the implementation of the forthcoming
Future Homes Standard and monitoring the reduction
in carbon emissions aligned with our Net Zero Carbon
Transition Plan.
The Sustainability Committee supports the Board’s
climate responsibility and oversees the Group’s climate
change strategy to ensure climate issues are being
effectively considered and that the business remains
ontrack to meet its science-based reduction commitments
Progress updates are provided regularly to the Board,
and to the Executive Committee. During 2025, the
Sustainability Committee focused on business readiness
and planning for the Future Homes Standard, and
ensured that operational carbon reduction initiatives
remained on track to deliver the Group’s net zero
andscience-based target carbon emissions
reductioncommitments.
The Group Sustainability Director and Group Strategy
& Regulatory Director are responsible for ensuring
climate risks within the Group risk register remain
relevant, and consult with key Group functions to
ensure comprehensive coverage of potential impacts
and mitigation plans as required. The Sustainability
Committee is made aware of any changes and
actionsrequired.
When considering our land investment opportunities,
the Managing Directors of each operating business
are responsible for ensuring all environmental surveys,
including flood risk assessments, are undertaken
before acquisition, with final approval going to the
Land Committee, which oversees all acquisitions.
All planning applications are reviewed by the Group
Planning department before submission, providing
additional assurance. Developments are required to
produce an energy transition plan to ensure
consideration of site needs, appropriate energy
solutions, and customer requirements as new energy
standards come into force. An internal annual climate
risk health check was undertaken again this year.
Persimmon Plc Annual Report 2025 – 59Financial statementsGovernance Other informationStrategic report
In the updated transition risk analysis, the 4-degree
scenario has been updated with a ’Business as Usual’
(’BAU’) which is a market expectations scenario aligning
to current policies and the Group’s committed targets
and investment plans. Temperatures are likely to exceed
2 degrees with no further global climate ambition, and
this approach presents the most realistic at the current
time. With the Future Homes Standard (’FHS’) aligning
UK homebuilding to a 1.5-degree pathway, and as the
legislation is imminently expected to come into effect, the
FHS has been considered as part the BAU scenario.
We are aligned to a 1.5-degree pathway through our
climate commitments, but other sectors and businesses
may not, therefore limiting our ability to achieve our
targets. The transition risk analysis undertaken
incorporates our existing strategy and commitments
based on what is feasible in each scenario and then
assesses our residual risk from external factors. These
maybe mitigated by business decisions (e.g. switching
suppliers) or market factors (e.g. cost pass through).
Climate scenario analysis outputs
From the scenario analysis that has been undertaken,
the residual risks for the business are considered to
below to very low for both transition and physical risk.
This is based on current activities and control measures
that are in place. The tables on pages 61 and 63 to
66provide a high-level summary of the types of risks,
their potential impact, the time horizons which have
been considered and ourresponse.
2
Strategy
Our strategy sets out our pathway to achieve net zero carbon by 2045, with clear actions to reduce carbon
emissions from our operations, our homes in use and our supply chain. We have near-term science-based carbon
emissions reduction targets of 46% for Scope 1 and 2 absolute emissions, and 22% per m
2
completed floor area for
Scope 3 emissions by 2030, which are approved by the SBTi. We aim to be zero carbon ready for our homes in
use by 2030. We have committed to setting long-term reduction targets, and are in the process of establishing
these targets through to 2045. We expect to reduce emissions by at least 90%, with the remainder being offset
orneutralised.
We have defined four strategic focus areas to achieve our ambitions:
1. Create low-carbon homes
·
Reduce energy demand: design homes to be more energy efficient.
·
Understand performance and customer experience: gather real-life in-use data and feedback from
our low-carbon home trials and customers.
·
Innovation: continue to instigate technology trials to be at the forefront of innovation, build strategic
relationships with our supply chain and continue to invest in our off-site manufacturing facilities.
·
We are currently implementing Part L of the Buildings Regulations 2021, delivering a 31% reduction
in carbon emissions, and readiness plans are in place for the Future Homes Standard, which is
anticipated to come into force from 2026/2027.
2. Deliver low-carbon site operations
·
Reduce our use of fossil fuels across our sites, and switch to low-carbon alternatives when appropriate.
·
Introduce new technologies such as electric and hybrid equipment and machinery when available
andappropriate.
·
Set standards and benchmarks for energy reduction and management on site.
3. Reduce the embodied carbon and whole-life carbon emissions
fromgoodsandservices
·
Identify high-impact materials and services, and establish reduction plans over the longer term.
·
Maximise the benefits from our vertical supply chain and opportunities through design.
·
Supply chain: work with our supply chain to reduce embodied carbon in materials and whole-life
carbonimpacts.
4. Ensure climate change resilience
·
Climate risk management: assess our strategic land holdings and any major business change for
climate resilience and mitigation.
·
Design: design in climate risk reduction measures, such as window sizing, orientations and modern
methods of construction.
·
Nature-based solutions: utilise blue and green infrastructure to mitigate against extreme weather
events such as flooding and droughts.
Climate scenario analysis
We have identified climate change-related risks and
opportunities over the short, medium and long term that
are considered to have a potentially material financial
impact on the Group’s strategy and business model.
Following best practice and TCFD recommendations,
contrasting science-based scenarios have been developed
to enable consideration of the Group’s exposure to both
physical and transition risks. These scenarios have been
considered over three different time horizons:
·
short term (end 2027), medium term (end 2030),
and long term (to 2040+).
These timescales have been chosen as the most
relevant to the business, reflecting major future
legislative change expected in 2026/2027 with
theintroduction of the Future Homes Standard and
aligning with the Group’s near-term and long-term net
zero carbon and science-based target commitments.
1.5°C aligned
Assumes climate policies and controls are introduced
early and become more stringent over a relatively
short timeframe (2030). High transition risk in
theshort term and very aggressive mitigation
measures, but as a result, physical risks are less
severe compared to the 2°C scenario. Achieves
a managed transition to a low-carbon economy.
~2°C aligned
Maintains similar regulatory requirements in
theshort term, then requires more aggressive
mitigation actions to reduce emissions. As a
result, physical risks are less severe compared
tothe 4°C scenario.
~4°C aligned
Low transition risk in the short and long term
asthe world fails to transition to a low-carbon
economy. Consequently, physical risks become
increasingly frequent and severe in the long term,
resulting in a serious impact on the global
economy, environment and human wellbeing.
Adaptation becomes necessary.
TCFD continued
Financial statementsGovernance Other informationStrategic report60 – Persimmon Plc Annual Report 2025
3
Risk management
Transition risk analysis
The transition risks are anticipated to occur in a relatively short timeframe compared to physical risks, and this is already being seen with increasing legislation on energy efficiency in homes coming into force, with changes to Part L
ofthe Building Regulations and the Future Homes Standard, for example. This will drive changes in technology and customer expectations, and we are already evaluating alternatives, trialling innovative technologies and engaging
with suppliers.
Summary description of transition risks
Potential
impact
ranking
Timeframe
of impact
Business
action
Policy and legal drivers
Pricing of GHG emissions
Carbon pricing could manifest as a range of environmental, planning or sector-wide taxes. Approx £90/tonne in 2030 across all scenarios, diverging by 2040 to
£130 BAU and £240 in 2- and 1.5-degree scenarios. By 2050, £165 in BAU, £630 in 2-degree, and £990 in 1.5-degree (source: WTW, NGFS, IEA scenarios).
Carbon pricing could impact the business through material costs.
High Short–medium Updated
Climate-related regulations
impacting products and services
Increasing stringency of building and planning regulations and design requirements to enable the UK Government to meet its 2050 net zero carbon target, including,
the Future Homes Standard, National Policy Planning Framework and National Model Design Code. Many local authorities have declared their own climate
emergencies, and imposing certain planning conditions on new build homes. This could impact our development and growth plans and increase build costs.
High Short–medium Updated
Climate change litigation
Climate-related litigation claims may be brought by investors, insurers, shareholders and public interest organisations. Reasons could include failure to adapt to
climate change causing harm or greenwashing.
Low Medium Include in
futureplan
Enhanced reporting obligations
Additional emissions-related reporting requirements likely in the UK by 2030. This could include needing a materials passport in order to increase the circularity of
building supply chains and updates to the Streamlined Energy and Carbon Reporting (‘SECR’) regulations. Scope 3 emissions reporting could also become mandatory.
Low Short–medium Include in
futureplan
Technology shifts
EV use
To achieve the UK Government’s net zero carbon commitment by 2050, there will be an increasing number of electric vehicles. Sufficient charging points and grid
capacity will be required, which will have an impact on build costs.
High Short–medium In plan
Substitution of technology
Risk of installing technologies at the beginning of a planning process that then become obsolete or outdated. Could affect customer satisfaction and sales. This is
especially relevant at the point of the implementation of the Future Homes Standard.
Medium Short In plan
Market drivers
Change in customer demands
There is a risk that if energy prices increase, customers will demand lower-carbon homes and expect greater energy operational efficiency. Inefficient properties
could also fall in value, which could impact the market.
High Short Updated
Supply chain resilience and
increasing cost of raw materials
Sourcing and availability of materials could be impacted by both transition and physical risks. There is a risk of increasing development costs, due to supply
constraints, and potential carbon pricing on key materials such as glass, steel, cement, PVC and insulation.
High Short–medium Updated
Changing cost of energy
Shifts in energy supply, pricing volatility and regulatory changes driven by the climate transition could impact costs of products and services. Low Medium Updated
Cost of capital
As credit ratings begin to incorporate climate change considerations, there is a risk of downgrading and the cost of capital increasing. Low Medium In plan
Low-carbon technology availability
Rapid uptake of low-carbon technologies such as air source heat pumps could cause market shortages and delay delivery of homes. High Short In plan
Skill shortage impacting ability to
install low-carbon technology
In order to reduce emissions to comply with planning requirements, access to different skills such as renewable specialists and heat pump installers will be required.
Ashortage could lead to delayed delivery and an increase in build costs.
High Short In plan
Reputation
Investment risk
Risk to revenue and investment streams as clients and investors increasingly expect high levels of sustainability performance. Medium Medium In plan
Stakeholder risk
Over the next decade social pressure regarding sustainability and increased public awareness could create a reputational risk if there is failure to reduce both
operational and embodied carbon. The impact of this could be seen through delays in the planning process as local authorities enact their own climate action requirements.
Medium–
high
Short–medium In plan
Employee risk
As employees are becoming increasingly concerned with climate change issues, negative publicity around failure to deliver targets could make it difficult to attract
and retain talent.
Low–
medium
Short–medium Included in
employee survey
Persimmon Plc Annual Report 2025 – 61Financial statementsGovernance Other informationStrategic report
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Risk management continued
Quantification of transition risk
The updated transition risk analysis comprehensively
covers all three climate transition scenarios over the
period from 2025 to 2040. The assessment provides
an annual time series estimate of quantified risk for
those elements identified as most material, where
adequate data was available to enable financial
quantification. The following approach was taken:
1. Pricing of greenhouse gas
(’GHG’)emissions
The latest available emissions data, alongside
Scope 1 and Scope 2 carbon reduction targets,
were utilised for this analysis. Estimates of future
carbon pricing were incorporated to assess the
potential financial impact of emissions-related
costs on operations.
2. Climate-related regulations affecting
products and services
Alignment with the UK Future Homes Standard
will necessitate increased development costs
toensure that all new homes are zero carbon
ready in use by 2030. Internal estimates of these
uplift costs, together with projections for the
number ofhomes to be built, have been factored
into theanalysis to measure the regulatory impact
onbusiness operations.
3. Capital investments in net zero
technologies
Transitioning to low-carbon construction equipment
represents a newly identified risk. This shift may
result in increased costs; however, the most optimal
decarbonisation route – whether Hydrotreated
Vegetable Oil (’HVO’) or green hydrogen – remains
uncertain. As a result, sensitivity analysis has
been conducted to account for this uncertainty
and itsimplications.
4. Changing cost of raw materials
Expenditure on raw materials was broken down
by key categories, including steel, concrete,
timber, bricks, plasterboard, PVC piping, copper
wiring, windows/glass, and thermal insulation.
Additionally, key components such as Air Source
Heat Pumps (’ASHPs’) and solar photovoltaic
(’PV’) systems were analysed. The analysis
quantified the cost changes resulting from the
transition for each material and component,
offering enhanced visibility on areas of
concentrated risk within the value chain.
5. Changing cost of energy
Energy costs were separated from those of raw
materials and analysed according to fuel type
– including electricity, gas, diesel, HVO and
others. The assessment considered potential
future cost changes arising from the transition,
with emissions reduction targets incorporated to
evaluate their influence on overall energy expenditure.
6. Changing consumer preferences
There is the possibility of short-term price
premiums associated with earlier compliance
with the UK Future Homes Standard. However,
these premiums are likely to dissipate once all
new-builds are required to comply. Due to limited
available data, this factor was not financially
quantified as it remains challenging to determine
the precise drivers of home premiums and the
value consumers place on energy efficiency and
zero carbon homes.
Detailed raw materials and supply chain
impact assessment
A detailed analysis has been carried out to understand
the impact of transition risk on raw materials and the
supply chain. In the coming years, increases in carbon
pricing will be reflected in the cost of procuring
carbon-intensive raw materials affected by regulations
such as the UK Emissions Trading Scheme (’ETS’) and
the UK Carbon Border Adjustment Mechanism (’CBAM’).
This will particularly affect commodities currently regulated,
such as steel and concrete, underthe Business-As-Usual
(’BAU’) scenario.
In transition scenarios, higher carbon prices are
expected to incentivise producers to accelerate the
decarbonisation of production rather than simply
passing through escalating carbon costs, which could
render these materials uneconomical. In the short term,
such ’green premiums’ may increase procurement
costs, especially in a more aggressive 1.5°C scenario.
However, in the longer term, it is anticipated that
decarbonised products will become more cost-effective
compared to the BAU scenario, where rising carbon
costs are passed on by suppliers who delay
decarbonisation. Thus, lower costs are possible in a
green transition scenario compared to a BAU context.
Other commodities, such as copper and timber, also
experience cost increases in the transition scenario,
primarily due to increased demand in 2°C and 1.5°C
worlds, while supplies remain constrained, thus
pushing up commodity prices. While short-term
procurement costs for carbon-intensive materials may
rise – either due to carbon pricing passed through or
green premiums for decarbonised alternatives – it is
expected that, in the long term, the transition will prove
beneficial if decarbonised alternatives become widely
available at competitive prices. This contrasts with a
BAU scenario, in which the business faces escalating
carbon costs and delayed supply chain decarbonisation.
Transition risk exposure and mitigation
The UK’s regulatory framework for the residential
construction sector, particularly the Future Homes
Standard, is already closely aligned with national
netzero commitments. In response, the Group has
committed to ensuring that all new homes constructed
will meet these standards once the legislation is
enacted. As a result, the business does not anticipate
any significant revenue risk arising from transition
scenarios, given that compliance with forthcoming
regulations is already integrated within its
operationalstrategy.
The primary exposure to transition risk lies in the
pricing of greenhouse gas (’GHG’) emissions, which
affects both direct emissions generated by the business
and those embedded within its supply chain. Regulatory
mechanisms such as the UK Emissions Trading Scheme
(’ETS’) and the UK Carbon Border Adjustment Mechanism
(’CBAM’) have the potential toraise the cost of carbon.
This increase would mainly occur through higher prices
for raw materials, should suppliers choose to pass on
the additional carbon costs. The financial impact may
arise from two main sources: the need to pay progressively
higher carbon costs across all scenarios, or the requirement
to procure lower-carbon raw materials that typically
attract a premium – though such materials are expected
to become more widely available as the transition accelerates.
Despite these pressures, we expect that the potential
increase in raw material costs will ultimately be
absorbed into the cost of land, resulting in minimal
residual risk exposure for the business.
In terms of energy expenditure, the cost of renewable
energy is anticipated to decrease under transition
scenarios. Since we purchase 100% of our electricity
from REGO-backed renewable energy (for our offices,
sites, manufacturing, facilities and supplies to our plots
whilst under our ownership) we are positioned to benefit
from expected reductions in energy costs as the transition
progresses. Nonetheless, the decarbonisation of operations
will require increased investment in net zero technologies
in the short to medium term. However, these initial
investments are projected to be offset over time by
lower operating and maintenance costs in the long
term, thereby supporting overall cost savings for
theGroup.
TCFD continued
Financial statementsGovernance Other informationStrategic report62 – Persimmon Plc Annual Report 2025
The table below summarises the quantified outputs from the transition risk assessment. In all cases the estimated financial impact is shown against a BAU scenario, which is based on an assumed rate of inflation and forecast business
growth. In all climate scenario modelling, assumptions have to be made andforecasting models (such as future global energy prices, future material prices) used.
Short term
(2027)
Medium term
(2030) Long term (2040)
Risk type Metric type
< 2°C 1.5°C < 2°C 1.5°C < 2°C 1.5°C
Adaptation/Mitigation options
Policy and legal risks
Pricing of greenhouse gas (’GHG’) emissions
In the short and medium term under both a 1.5°C and 2°C scenarios, pricing of GHG emissions is expected to increase in the
same way as BAU, in order to drive market changes required to meet national emissions reductions targets. This could be through
higher Climate Change Levy taxes or an additional sector-wide policy such as the UK Emissions Trading Scheme or Carbon
Border Adjustment Mechanism. In the long-term transition scenarios, the increase reflects, the predicted increase in carbon prices.
Difference to BAU
carbon costs
— — — — 0.87M 0.87M Detailed Net Zero Carbon Transition Plan in place
laying out our carbon reduction actions to 2045.
Our vertical integration strategy reduces our
exposure to carbon pricingimpacts.
Climate-related regulations impacting products and services
The FHS costs are already factored in as BAU. The negative numbers indicate that compared to a BAU scenario, the FHS uplift
would reduce in transition scenarios, as thecost of ASHPs is expected to decline over time. This is seen most significantly in the
1.5degree scenario.
Difference to BAU
(includes FHS
cost) uplift cost
-1M -2M -12M -18M -20M -27M Business readiness plan for the FHS implementation is
already in place. Whilst the business will experience
greater costs to comply with the FHS within aBAU
scenario, these will be mitigated in land valuations.
Technology risks/opportunities
Capital investments in net zero technologies
The impact of transitioning to low/zero carbon technologies for operations, such as hydrogen fuel has not been quantified as it is
not yet commercially available. Transition to low-carbon technologies may increase shorter-term capital costs for Persimmon with
potential for longer-term benefits through operational cost savings.
N/A Detailed Net Zero Carbon Transition plan in place.
Engagement with hydrogen-fuelled construction
fleet suppliers.
Market risks/opportunities
Increasing cost of raw materials
Development costs may increase if suppliers pass on the carbon pricing applied to high-carbon building materials (such as steel,
cement, copper, aluminium).
Under transition scenarios, the effects of carbon pricing are lower, due to decarbonisation and alternative products being available
at scale. Whilst these alternative materials will likely come at a higher initial cost, this increase is expected to be less significant than
the cost escalation anticipated under a BAU scenario, where carbon prices continue to rise without substantial decarbonisation.
The transition scenarios account for potential cost increases from commodities that face constrained supply and growing demand
(timber and copper). The impact of material availability and market dynamics is factored into overall cost projections during the
transition to lower-carbon construction practices.
Difference to BAU
costs (total spend)
4M 10M -7M 21M -45M -1M Detailed understanding of raw materials risks –
strategic supplier engagement in place to develop
cost-effective solutions and material alternatives.
Cost impacts will be mitigated through inclusion
inlandvaluations.
Changing cost of energy
While electricity prices remain more or less flat (in nominal terms) over the long term in the BAU scenario, under the 1.5°C
scenario, electricity costs are expected to decline faster than in BAU due to the greater deployment of renewables and energy
storage driving down costs. Continued use of diesel will be subject to ever-increasing carbon costs. HVO offers a short-term
opportunity, but is supply constrained in the long term.
Difference to BAU
costs
-0.8M -1.1M -1.1M -1.7M -2.0M -4.6M Detailed Net Zero Carbon Transition Plan in place.
Already purchasing 100% REGO-backed
electricity (excluding travel), switched to hybrid
diesel generators.
Changing consumer preferences
The market recognition of the value of low-carbon homes is still evolving, with limited green mortgages to drive change. With the
introduction of the FHS expected in force by 2027/2028, highly energy-efficient, zero carbon ready homes in use will become
the norm for new-builds. There is limited data to properly quantify the added financial value which will be delivered.
N/A Delivering high-quality affordable sustainable homes
isa key business priority. Customer research and
engagement on alternative low-carbon heating solutions.
Persimmon Plc Annual Report 2025 – 63Financial statementsGovernance Other informationStrategic report
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Risk management continued
Physical risk analysis
While physical risks under the scenario modelling manifest over a longer period, there is already an increasing occurrence being observed of more extreme weather events that are attributed to current climate change.
Thesearetypically observed as more excessive snowfall, rainfall, unusually high temperatures and unseasonal weather patterns.
The table below ranks the potential impacts, timescale and readiness based on those that will manifest more significantly in the future.
Summary description of physical risks
Potential
impact
ranking
Timeframe
of impact
Business
readiness
Heat stress
Hot summers are expected to become more common with more extreme temperatures. Under the hot house scenario, heatwaves could last
20days. This will affect comfort for customers and therefore design criteria will need to be applied to avoid overheating. Construction site
conditions and working practices will need to ensure worker health, safety and wellbeing. Heat island effects will also become more
prevalentin urban and built-up areas.
High Medium-long In plan
Drought
Summers will become drier, with the South of the UK predicted to experience 2.5–3.5 months of drought under the hot house scenario.
Locallythis will impact water suppliers and will become part of planning considerations.
High Medium-long In plan
Precipitation
Greater chance of more rainfall in the winter and less in the summer. Seasonal and regional differences. Impact on site construction activities,
customer gardens and supply chain.
High Medium-long In plan
Flood
High underlying flood risk in the present day. Under the hot house scenario, there is a 21%–56% increase in river peak flow rates and the
probability of flooding in a year could increase three to ten times. Already a key requirement in the planning process. Increased number of
flood plains in the future may impact build costs and/or land availability.
High Medium In plan
Windstorms
Classed as medium to high risk in all scenarios, but with greater severity under the hot house scenario. Predicted to decrease in the South,
butincrease in the Midlands, the North, Wales and Scotland.
Medium Medium In plan
Sea level rise
Expected between 0.2m–0.6m under the net zero scenario and up to 1.1m in the hot house scenario. This will have an impact
oncoastallocations.
Low Long
Include in
futureplan
Subsidence
Medium-level risk of possible ground instability and building foundation issues. Regions around London are most exposed.
In the hot house scenario, there is a higher risk and greater area of impact in the South of England.
Medium Long
Include in
futureplan
Infrastructure
The stress on water and energy utilities, together with road transportation, will increase. In the hot house scenario, there is the expectation
ofdisruptions to critical services. This could impact supply chains and result in production downtime.
Medium Long
Include in
futureplan
TCFD continued
Financial statementsGovernance Other informationStrategic report64 – Persimmon Plc Annual Report 2025
Quantification of physical risk
For physical risk, the risk to the Group’s portfolio of owned assets was explored in relation to eight physical
climate perils: chronic heat stress, chronic drought stress, sea level rise, extratropical cyclone, fire weather,
riverflood, precipitation/flash floods, and subsidence.
The exposure to these climate perils (hazard exposure) was modelled by taking the regional view of the UK,
weighted by the average volume delivery where Persimmon has operated over the past four years. The models
assess the climate hazards under a range of GHG emission trajectories (1.5°C–2°C, and 4°C global warming)
and the 2030 and 2040+ time horizons. This information was then used to assess the potential consequences to
the Group’s business and explore with the Group’s internal subject matter experts what controls and strategies
exist in place to address the possible consequences and how those will flow through the value chain.
By 2030 assuming 1.5°C–2°C global warming By 2050 assuming 4°C global warming
Hazard
exposure
Residual
risk Chronic risks
Hazard
exposure
Residual
risk Chronic risks
Heat stress
Very low Very low
Currently, the UK is exposed to very low heat stress, meaning on average
there are fewer than five heatwave days in a year. Changes in regulations
and design concerning overheating and energy efficiency are likely for
the short term (2025–2030), but the additional costs to the business to
implement them would not be significant as those could be factored into
the land valuation process. No other impacts or vulnerabilities are
foreseen and therefore our residual risk is very low.
Moderate Very low
Under this scenario, some regions of the UK, mainly London and the
South, will be exposed to a higher heat stress, seeing an average of
5–20heatwave days in a year. Those conditions could be relevant to
~40% of the average homes built by Persimmon, primarily in the South
East of England. However, we currently factor conservative temperature
and heat stress forecasts into our designs to address overheating.
Heat-minimising solutions could be factored into building design and
planning. Future regulation could require further adaptation/design
measures that are typically considered in any land valuation exercise.
More frequent interruptions to construction operations and supply chain
are likely in the summer periods.
Drought
Low Very low
Around 50% of the volume delivery in the regions where Persimmon
operates have some level of drought stress potential, in particular the
Midlands and the South of the UK. This means, on average, ranging
fromless than a month to over two months of drought duration per year.
The remaining 50% have a lower drought stress potential. We take
measures for our current homes to keep water usage lower than average.
Any additional development costs are typically recovered through land
valuation. There has been no significant financial impact on the business
so far, and the residual risk is therefore considered very low.
Moderate Low
The risk increases. A third of our typical operating regions/homes could
face three to four months of drought duration per year, inparticular in the
South of the UK. There could be further regulations forwater (re)use that
could put additional costs on developments in the South East. We would
consider this issue on a site-by-site basis andcurrently undertakes water
usage calculations for our developments. Any additional costs would be
considered in the land valuation process. Operationally, water scarcity
could cause delays in construction or supply and cost issues for water-based
construction materials.
Sea level rise
Very low Very low
Some regions of the UK where we operate are exposed to coastal
flooding and storm surges. Typically, only a small fraction of plots and
volumes could be exposed; however, the robust land investment appraisal
process today considers such localised high-risk areas and minimises the
possible business impacts.
Very low Very low
Although the sea level is projected to rise and increase the frequency
andseverity of storm surges to those coastal regions already exposed,
thefraction of land and possible future developments in the regions
weoperate in is likely not to increase significantly. The risk is minimised
through our robust land investment valuation process.
Subsidence
Low Very low
No significant changes in subsidence conditions today or in the short term.
Typically, we operate outside London, where a higher concentration of
susceptible clay soils is found. Current design regulations mitigate therisk.
Moderate Very low
Possible increased risk for future development and some exposure in
theSouth East. More conservative regulations could be introduced for
foundation design and groundworks. Any additional costs would typically
be mitigated via land procurement.
Risk scale
Very high High Moderate Low Very low
Persimmon Plc Annual Report 2025 – 65Financial statementsGovernance Other informationStrategic report
3
Risk management continued
Quantification of physical risk continued
By 2030 assuming 1.5°C–2°C global warming By 2050 assuming 4°C global warming
Hazard
exposure
Residual
risk Chronic risks
Hazard
exposure
Residual
risk Chronic risks
Windstorm
Moderate Low
All of the UK is in stormy regions, with a 1% annual chance of having
severe wind gusts of over 121km/h, and approximately half of the typical
regions and homes we deliver could see higher wind gusts of 161–
200km/h. We currently comply with all up-to-date wind design
regulations for our developments, which mitigates the risk.
Operational disruptions in construction, supply chain and utilities
are,however, possible. Direct and indirect physical damage from
extremestorms could create financial impacts and delays to
constructionprogrammes.
Moderate Low
There is no scientific evidence that extra tropical cyclone intensities and
frequencies will increase significantly; therefore, the risk profile could
bebroadly similar to current conditions. Although the risk is not changing
significantly and adaptation is likely not required, we will consider a strict
level of wind protection in design and risk management for operations
onsite.
Fire
Very low Very low
Currently, 25% of the typical volumes and regions are exposed to low fire
weather stress, with 5–20 days of fire weather conditions per year. Other
regions have a very low exposure to fire weather conditions, equal to less
than five days annually. As a consequence, fire weather is not considered
a material risk. There is potential for indirect supply chain risks and issues
sourcing timber material from overseas. No financial impacts have been
reported at present.
Low Very low
Under the high-emissions scenario, by 2050, the fire weather conditions
increase for some regions we operate in, but risk is still considered
relatively low, and as a consequence fire weather is not considered
adirect material risk to the business.
There is a potential that timber raw materials could be disrupted due to
wildfires elsewhere; however, that risk is not projected to increase for key
regions upon which we rely, like Scandinavia.
Flooding
Very low Very low
Some regions of the UK where we operate are exposed to river flooding.
However, this is a very localised risk. Typically, only a small fraction (~5%)
of plots are in zones with a 1% probability of significant flooding in a year.
The robust land selection process in place today, together with extra flood
design considerations and loading factors for future changes, minimises
key impacts on current and future homes.
Very low Very low
Although the percentage of plots in flood zones does not increase significantly,
projected changes indicate that the frequency of flood events could
increase in the UK. We could be impacted by additional flood regulations
and higher adaptation/mitigation costs for developments, as well as
potentially more frequent interruptions to operations. Restrictions on land
supply are also possible. We carry out due diligence before land investment
and factors in increased river flows in flood design and planning, minimising
impacts. Any additional costs are normally considered in the land
investment appraisal process.
Precipitation
Very low Very low
A small proportion of regions (3%) is exposed to moderate or higher risk
ofprecipitation, meaning two to seven days with more than 30mm of
rainfall. We consider rainfall parameters in drainage design, which
minimises this risk.
Very low Very low
There is a small projected increase in heavy rainfall compared to
thepresent day. Current design considerations could be sufficient for
future changes, but additional regulations could emerge, creating
additionalcosts.
We benefit from having a wide range of developments across all regions of the UK, which mitigates the range and variety of physical risks that we are exposed to. This also informs where risk may become more predominant,
andavoidance and mitigation strategies can be put in place. We have a robust land investment appraisal and planning process where all potential sites are evaluated for climate risk, thereby mitigating potential business impacts.
Risk scale
Very high High Moderate Low Very low
TCFD continued
Financial statementsGovernance Other informationStrategic report66 – Persimmon Plc Annual Report 2025
Resilience of the Group’s business
strategy and business model
We have in place a number of climate change
mitigation strategies and identified opportunities
aspart of our business model. These have been further
informed by the detailed transition risk analysis, which
has considered the potential risks and opportunities
ata more granular level and assessed potential
financialimplications.
Detailed insights into material transition risks have
been gained, enabling strategies to be put into place
to most effectively minimise and mitigate potential
risks. Key commodities with carbon pricing effects,
and with greater demand in a transition, have been
analysed and engagement with our supply chain
partners has commenced. Our vertical integration
strategy supports the transition to lower carbon
andprovides resilience.
We, as is standard in the industry, reflect development
costs when performing land valuations, and potential
climate risks are considered in the same manner. Land
values will be reflective of potential mitigation costs;
however, there may be challenges in the future where
land in certain locations is in scarce supply, or where
land values are regionally low and will not support
potential additional reductions from climate mitigation
costs. Engagement with key suppliers and building
strategic partnerships, as well as driving for innovation,
is advanced within the business and provides a strong
foundation to further mitigate climate-related costs.
A high-level internal annual climate risk health check
was performed in 2025 to ensure the controls and
mitigation measures identified as part of the climate
risk assessment remain in place and are effective, and
to identify whether anything had changed within the
business to present a new risk or opportunity. As a
detailed transition risk assessment was undertaken this
year, the focus was more aligned to ensuring physical
risk controls remained in place.
From the scenario analysis that has been undertaken,
the residual risks for the business are considered to be
low to very low for both transition and physical risk.
Transition risk mitigations and opportunities Physical risk mitigations and opportunities
·
We have used core house types across our
national network of development sites, which
help ensure that any new regulatory requirements
can be effectively and consistently applied.
·
We deliver increasingly energy-efficient homes,
thereby attracting a strong customer base.
·
We have developed our low-carbon/zero
carbon ready homes strategy. The Future Homes
Standard (‘FHS’), expected in 2026/2027, will
require homes to produce 75%–80% less carbon
emissions. This will require a switch to alternative
heating systems such as air source heat pumps,
higher levels of insulation and air tightness,
andadditional energy recovery or generation
technologies. We are already well placed
todeliver this.
·
All development sites have an Energy Transition
Plan in place, which identifies the site build
maturity and regulatory transition periods and
identifies appropriate energy heating solutions.
The next few years will see a combination of
heating solutions as, in some cases, existing
planning permissions will be for gas systems.
·
We have several pilot projects to assess themost
effective method of achieving the FHS. Thepilot
projects are being used to: trial new technologies;
assess the most effective build methods of
achieving the improved efficiency required using
a ‘fabric first’ approach; and gain feedback from
customers on the ‘liveability’ of thehomes.
·
The improved efficiency of new homes is also
asignificant opportunity for us as we develop
homes that are more energy efficient, more
appealing to customers and have a lower
impacton the environment.
·
In designing our developments, particular
attention is paid to all issues that surround
thepolicy transition necessary to achieve new,
morestringent climate and environmental policy
requirements. Todeal proactively with local and
site-specific interpretation/application, we have
developed design and access statement templates
aligned with the National Model Design Code.
·
Our business model includes vertical integration;
we own a timber frame, wall panel and roof
cassette manufacturing facility. These modern
methods of construction assist in building
low-carbon homes, with a reduced buildtime.
·
Strategic discussions with core suppliers have
commenced on identified commodities that
face
carbon pricing impacts and resource constraints.
·
Our UK-wide and diverse high-quality land
holdings support our strong network of outlets
and ensure we are well positioned to invest in
land at the right time in the cycle. The strong
gross margins embedded in our existing
landholdings help to absorb potential volatility
caused by increasing building costs.
·
Our significant ongoing investment in training
ensures that we maintain an appropriate
skillbase to manage changes to operations
andprocesses required by climate change
mitigationrequirements.
We already manage a number of potential physical
risks, such as flooding, as part of our planning
activities, and understand the financial implications.
·
We undertake comprehensive environmental
and flood risk assessment for each potential
land acquisition that we make, and for
strategic land considerations.
·
Planning requirements principally influence
therequirements for any flood mitigation and
drainage requirements, and there is increasing
consideration for use of blue and green
infrastructure. The forthcoming mandatory
sustainable urban drainage systems (‘SUDS’)
regulations for England have been assessed,
and we have considered the opportunity to
support Biodiversity Net Gainrequirements.
·
The detailed climate risk analysis provides
more in-depth understanding of potential
physical climate risks and the impact they
could have on the business over the medium
tolong-term horizons. This information has
informed the Group Land and Planning team
when considering future site locations and
land viability costs.
·
We have a UK-wide network of sites and
therefore have significantly reduced exposure
to potential regional climatic risks, and are
able to strategically consider potential
development locations.
Persimmon Plc Annual Report 2025 – 67Financial statementsGovernance Other informationStrategic report
3
Risk management continued
Resilience of the Group’s business
strategy and business model continued
As a principal risk for the Group, climate risk is governed
and managed in line with our risk management framework;
see page 71. The framework requires identification of
the risk, evaluation of the potential impact, the consequences,
allocation of the risk owner, probability assessment,
description of controls and controls owner, and finally
an evaluation of any residual risks. Our identification
and assessment of risks is managed by the Audit & Risk
Committee, with the Board taking ultimate responsibility
for risk management.
The climate risks, their potential consequences
andtheir current impact on our business model
areidentified and reviewed by our Executive team,
senior members of the Group Finance team, theGroup
Sustainability Director and the Group Director of
Internal Audit. A wide range of insights andresources
are used to ensure climate-related impacts are effectively
tracked and considered, including climate insights and
trends, emerging legislation and Government policies,
consultations, local authorities positions and industry
body resources.
The climate risk register is reviewed and updated
asrequired. It is arranged into transition risks and
physical risks. As risks are identified, we consider
whether the business strategy and business model
already manage/mitigate the relevant risk.
If any gaps are identified, then following the risk
framework, we establish the appropriate response.
The climate scenario analysis and detailed climate
riskanalysis and modelling have provided a detailed
assessment of transition and physical risks against three
time horizons. This has provided a greater depthof
understanding and enabled prioritisation of climate-related
risks, and we will continue toembed the findings into
our climate risk and opportunities management.
4
Metrics
We monitor emissions from our operations, which have
been measured following the GHG Protocol Corporate
Accounting and Reporting Standard (Revised Edition).
Detailed GHG emissions information is located on
page 39 following the requirements of the Streamlined
Energy and Carbon Reporting requirements, and
disclosures are for Scope 1 and 2 and an emerging
level of information for Scope 3 (supply chain products
and services, and homes in use).
We are committed to playing our part in the international
effort to reduce greenhouse gas emissions by reducing
its emissions across the business operations and also
the supply chain and from the homes we sell.
We have set a target to be a net zero carbon business
by 2045. This commitment is supported by near-term
approved science-based carbon targets to reduce our
operational emissions (Scope 1 and 2) by an absolute
of 46% (vs 2019 baseline) and our indirect emissions
(Scope 3) from our supply chain and homes in use by
22% per m
2
completed floor area by 2030 (vs 2019
baseline). These reductions will be achieved through
wider supply chain engagement, product innovation
and changes to current operational processes. Long-term
net zero carbon targets are being progressed, with the
expectation of a reduction in our operations and across
our value chain of at least 90%, with the remaining
10% being offset through a suitable mechanism.
The Board believes in the importance of ESG,
andtheRemuneration Committee implemented an
environmental 2023 PSP environmental target linked
to reducing Scope 1 and 2 carbon intensity. Subsequent
PSP environmental targets for 2024 and 2025 have
been set, aligned to absolute carbon reduction measures.
The table opposite shows our climate-related metrics
and targets.
Time
period Target Metrics
Climate risk/
opportunity 2025 status/comments
Short term
(2022–2025)
Continue to embed
climate risk and opportunity
analysis into the business
strategy and operations
Qualitative Group Executive, Regional Chairs
receive business-wide bi-monthly
diesel use figures
Establishment of Future Homes
Implementation Group
Scope 1 and 2 – reduce
our operational footprint
Absolute carbon
reduction (market based)
Carbon
pricing
Reduced by 17% compared
to2024
Maintain 100% carbon
neutral electricity purchased
– green/REGO backed
100% REGO-backed
electricity purchased
Carbon
pricing
100% achieved for our offices,
sites, manufacturing facilities and
supplies to our plots whilst under
our ownership
Undertake embodied
carbon assessments,
setreduction targets
Tonnes CO2/m
2
completed floor area
Increasing
cost of raw
materials
Embodied carbon study undertaken
Targets under development
Supply chain
engagement on
embodied carbon
Action plans in place
to reduce carbon
content of top CO2
contributors
Increasing
cost of raw
materials
Successful trial of c.30% Ground
Granulated Blast Furnaced Slag
(‘GGBS’) undertaken. Rollout
planned 2026/2027
Medium term
Homes to be zero carbon
ready in use by 2030
% homes completed
per year with an EPC A
or Brating
Changing
consumer
preferences
99.5% achieved
Reduce absolute Scope
1and 2 GHG emissions
by 46% by 2030
(2019baseline)
Tracking against SBT
near-term transition
pathway – tonnes
CO
2
e against a 2019
baseline
Carbon
pricing
On track
See GHG table on page 39
Reduce Scope 3 carbon
emissions (purchased
goods and services, and
use of sold products) by
22% per m2 completed
floor area by2030
Tonnes CO
2
e/m
2
completed floor area
against a 2019
baseline
Climate-related
regulations
impacting
products
andservices
On track
See GHG Table age 39
Increasing transition to low-carbon
energy systems e.g. ASHPs
Embodied carbon study
undertaken to assess most
significant materials
Long term
(2040+)
Net zero carbon business
by2045
TBD (expected at least
90% reduction in
operational and value
chain carbon emissions
Business
resilience
Net zero Transition plan developed
See pages 31 to 34
TCFD continued
Financial statementsGovernance Other informationStrategic report68 – Persimmon Plc Annual Report 2025
Progress in 2025 and 2026 priorities
Progress against the actions identified for 2025 is shown below:
2025 priority 2025 progress
Climate risk health check: whilst the level of risk is
overall quantified as very low to low, this is based on
mitigation measures remaining in place, and we will
ensure there is no loss of focus and rigour in its approach.
An annual ‘climate riskhealth check’ will be undertaken
as part of our risk management strategy.
A high-level internal annual climate risk health check
was undertaken focusing on physical risk controls and
confirmed no material changes to current controls and
measures, and the potential risks remain the same.
Thetransition risk was updated and undertaken with
support from specialist risk management firm, WTW.
Development of science-based target aligned
long-term net zero carbon targets.
Deep dive into flood risk and resilience will be undertaken.
Mapping of key supply chains will commence.
A commitment to set long-term SBTs has been made,
and targets are under development.
Following a review of business priorities, and timescales
associated with climate risk, this objective was changed
to undertaking a full update of transition risk and providing
financial quantification, and aligning to IFRS 2 Standard.
This has commenced as part of the updating of the
transition risk assessment.
Priorities for 2026
·
We will conduct an annual climate risk health check to ensure controls remain in place and are effective.
·
Embed the findings from the updated transition risk assessment, leading with supply chain strategy
andengagement.
·
Conduct a review of the physical risk assessment and update as necessary.
Persimmon Plc Annual Report 2025 – 69Financial statementsGovernance Other informationStrategic report
Principal and emerging risks
Our approach to managing risk
The Board recognises that Persimmon is exposed
toarange of risks that could threaten our ability to
deliver on our strategic objectives and drive value for
all of our stakeholders. As such, ensuring we have an
effective mechanism for risk management is essential
to our future success. This is delivered through the
Group’s well-established risk management framework,
which involves input from all levels of our operations
toassist in the identification, management and
ongoing monitoring and reporting of risks.
Risk management framework
Overall responsibility for the oversight of risk sits with
the Board. This responsibility is largely discharged
with the support of the Audit & Risk Committee,
whichin turn works closely with the Management Risk
Committee as the key business forum for risk oversight.
Many of the strategic aspects of risk management are
carried out on a ‘top down’ basis, with the Board and
Audit & Risk Committee agreeing overall appetites and
tolerance for our principal risks, providing challenge
to management on their approach to mitigating and
monitoring these risks effectively, and ensuring the
accuracy and integrity of our risk disclosures. Alongside
the strategic consideration of risk, a ‘bottom-up’
approach is in place, with risk management integrated
into day-to-day activities at all levels of the Group.
This helps to ensure that risks are effectively mitigated
at an operational level, and any emerging risk areas
are identified, assessed and escalated appropriately.
Risk management activities are also supported by
work from both internal and external providers of
assurance and independent review. The diagram
onthe next page provides a schematic of our risk
management framework and how the different
elements interact.
Our risk management framework has been in place
forseveral years, and continues to evolve in response
to increasing complexity and pace of change in the
external environment. In this context, the Board has
overseen various initiatives within 2025 to enhance
thematurity of our risk management processes and
support continuous improvement. The role of the
Management Risk Committee has expanded, enabling
greater focus on key risk areas such as cyber risk and
business continuity planning. A new risk management
strategy has been developed and agreed with the
Audit & Risk Committee, with additional specialist
resource deployed within the Group Risk & Internal
Audit department to support its implementation.
Theseinitiatives will integrate with our work on
strengthening internal controls in preparation for
theBoard’s future effectiveness declaration under
Provision 29 (see pages 113 to 114), helping to
ensureourongoing resilience.
Risk appetites and tolerance
The Board, with the support of the Audit & Risk Committee,
has developed a Risk Appetite Statement, classifying
its principal risks against different appetite categories:
·
Averse: Aim to minimise exposure as far as is
practically possible, with a low tolerance for
potential adverse outcomes. This category is
applied to risks that could have severe consequences
in areas such as HS&E, compliance, or reputation.
·
Cautious: Acceptance of low to moderate levels
ofrisk in areas that are necessary to achieve
operational efficiency and strategic initiatives.
Risksare carefully managed to avoid significant
negative impacts on the organisation.
·
Enterprising: Openness to accepting moderate
tohigher levels of calculated risks when pursuing
strategic opportunities that could drive our growth
or enhance operational performance.
Risk tolerance is considered against various
risk-specific measures and narrative reporting,
reviewed and challenged by the Management Risk
Committee before presentation for approval at the
Audit & Risk Committee. The articulation of risk
appetite also informs the design, operation and
targeted maturity of each material control linked
totherequirements of Provision 29 and the
preparations for enhanced disclosures from 2026.
RISK MANAGEMENT
Financial statementsGovernance Other informationStrategic report70 – Persimmon Plc Annual Report 2025
Risk management framework
Governance
Assurance
Risk assurance
Second line
Our second line comprises a range of functions with a Group-wide remit,
whichplay a key role in mitigating risk through the formulation of Group policies,
procedures and control mechanisms designed to mitigate risks. Many of these
measures constitute our material controls, which include a range of measures
suchas financial, operational and compliance controls, that serve to mitigate
ourprincipal risks and other key risk areas. For some key areas of risk, such as
construction and HS&E activities, the second line functions include programmes
ofroutine monitoring andassurance on the implementation of controls within the
Group’s operations.
Third line
The Group Risk & Internal Audit department is our independent third line function.
Its role includes the delivery of a risk-based audit plan to provide assurance on key
areas of risk and compliance, provision of regular principal risk reporting for the
Audit & Risk Committee and an annual summary report for the Committee to
support its conclusions on the overall effectiveness of risk management and
internal control.
‘Fourth line’ (external assurance)
We benefit from additional assurance on effective risk management from external
sources. This includes the work of our external auditor and inspections and audits
from regulators, warranty providers, insurers and providers of externally
recognised certifications (such as cyber essentials plus and ISO45001).
Board
·
Sets our risk culture and approach to risk management, providing an effective ‘tone at
the top’.
·
Has overall responsibility for the effectiveness of risk management processes.
·
Defines our risk appetite and tolerance, and the approach
toourprincipalandemergingrisks.
·
Provides oversight on the effectiveness of our systems of risk management and internal
control, including our identified material controls.
·
Reviews and approves financial and non-financial reporting, associated risks and
controls, and all risk-related disclosures.
·
Reviews reporting on risk management activities, including the operation
oftheManagement Risk Committee.
·
Receives reports from risk owners, and both internal and external providers
ofassurance, on the effectiveness of risk mitigation measures.
Audit & Risk Committee (see pages 108 to 114)
Management Risk Committee Executive Committee Disclosure Committee Sustainability Committee
·
Supports the Board in
developmentand oversight of
theriskmanagement framework.
·
Reviews risk indicator reports and
feedback on risk from operational teams.
·
Reviews the operational effectiveness
of control activities.
Regional and Operating Company Management
·
Manage the day-to-day operational performance of the business, including identification of any changes in risks affecting operations.
·
Ensure the effective implementation of internal controls set by the Board and Group functions within the business.
·
Address Group-level priorities as cascaded through regional and Group-wide management meetings.
·
Report routine operational risks and issues through management forums such as the Land Committee and Regional Boards.
·
Supports the implementation of our
strategy and delivery of key priorities.
·
Reviews our operational performance
including the routine management
ofrisk.
·
Provides oversight and challenge on
external reporting.
·
Reviews financial and non-financial
reporting ahead of Board and Audit
&Risk Committee reviews.
·
Provides oversight on all climate
andsustainability-related matters.
·
Reviews disclosures associated with
climate and sustainability, obtaining
appropriate assurance where required.
Persimmon Plc Annual Report 2025 – 71Financial statementsGovernance Other informationStrategic report
Overall assessment of
theGroup’s principal
andemergingrisks
In line with the requirements of Provision 28 of the
UKCorporate Governance Code 2024, the Board
has completed its assessment of our principal and
emerging risks, assessing these against the FRC’s
criteria as those that could threaten our business
model, future performance, solvency or liquidity
andreputation.
Principal risks
The Board’s assessment, conducted with the support
ofmanagement, has determined that that 12 risk areas
meet the criteria for consideration as principal risks,
each of which are broadly aligned with those reported
in 2024. In common with the rest of our sector, we retain
a particular sensitivity to external risks, most notably
those posed by economic and market conditions,
Government policy and political risk. There have been
two material changes from our 2024 assessment of
principal risks. The previously reported ‘legacy buildings’
risk has been broadened into a revised ‘building safety
and legacy buildings’ risk, reflecting the Board’s
continued focus on building safety through current
build, as we continue to make progress in addressing
remediation requirements from legacy developments.
Similarly, the previously reported ‘cyber and data’
riskhas been broadened to ‘business resilience’ risk,
considering the potential threats from cyber attacks
and other events that could cause widespread
operational disruption. The 2025 assessment
considered the ratings of this risk in the context of
several high-profile cyber issues for other large UK
businesses within the year. While the threat of disruption
in this area has increased over the year, we have
simultaneously continued to invest in maintaining and
improving our cyber security posture and developing
stronger business continuity contingency measures.
Assuch, while the risk is considered to be increasing,
the previous overall rating of ‘high’ has not been
revised. The rating of our ‘HS&E’ risk was also considered
in relation to our continued work to strengthen controls,
including the achievement of the ISO45001 standard
for our health and safety management system. Again,
it has been determined that the risk rating remains
appropriate and did not warrant change.
The overall assessment of our current principal risks is
that all are subject to controls or other mitigations that
bring them within the tolerance range defined within
our risk appetite, and we remain confident in our ability
to manage these risks effectively. However, it is recognised
that risks may materialise together rather than in isolation
and, should this occur, it could have a material impact
on our operations and financial performance. The
Viability Statement (see pages 77 to 79) includes
abroad assessment of the resilience of our business
model in the face of such challenges, and includes a
range of sensitivity analyses and the likely responses
of the Board should they materialise.
Emerging risks
Emerging risks, defined as those that are known
butcannot be assessed in detail at present and could,
under certain conditions, evolve to pose a strategic
threat as a principal risk, have also been considered
by the Board. Emerging risks were reviewed through
the normal operation of our risk management framework,
with detailed consideration from the Management Risk
Committee contributing to a formal annual presentation
for review and challenge by the Audit & Risk Committee.
Our 2025 assessment has not identified any new
emerging risk areas beyond changes within our
existing principal risks. The previously recognised
emerging risk of ‘market disruption’, has been retained.
This reflects the potential threats to our business model
from disruptions such as Artificial Intelligence (’AI’),
market consolidation or breakthrough advances in
deployment of technology such as modular construction.
This risk will be monitored by the Board and, operationally,
by the Executive Committee and Management Risk
Committee. Mitigation strategies will be kept under
review as the risk evolves.
Principal and emerging risks continued
RISK MANAGEMENT CONTINUED
Financial statementsGovernance Other informationStrategic report72 – Persimmon Plc Annual Report 2025
PRINCIPAL RISKS
Riskrating Risktrend Risk appetite
Link to
strategicpriorities
Very high No change Averse
Within tolerance
3
4
Risk owners Executive Committee and Regional Chairs
Risk description
Failure to anticipate, respond or adapt to changes in the UK macroeconomic
environment, including any significant events or trends affecting employment
levels, inflation, and mortgage availability or affordability, could impact on
overall consumer confidence, reducing demand and pricing for new homes.
This could reduce revenues, margins, profits and cash flows and potentially
result in the impairment of asset values. Changes in economic and market
conditions could also drive competitors to make different strategic choices
ortake actions that could pose a threat to our overall strategy and business
model, such as increased consolidation within the sector.
Key mitigations
·
Highly disciplined approach to investments in land and work in progress,
factoring in both current and anticipated levels of demand.
·
Continuous focus on pricing structures to align with local market conditions.
Our UK-wide network (with no significant presence in London) and product
range (including our premium Charles Church product) provides some
insulation against the effects of regional economic fluctuations.
·
The Board’s annual strategic review assesses anticipated changes
inexternal conditions to determine appropriate strategic responses.
Salesprices and incentives to support sales are kept under constant review.
·
Introduction of innovative products, including our New Build Boost
andRezide shared equity products, to support affordability.
·
Economic and market risks are subject to designated material controls
within our internal control framework.
Risk monitoring measures
·
The Board, Executive Committee and Management Risk Committee closely
monitor UK economic trends, using both internal and external sources,
withregular market and economic briefings from expert advisors.
·
Sales rates and pricing patterns are reviewed on a weekly basis.
·
The Board considers the effectiveness of the Group’s risk management
andinternal control framework, including controls over economic
andmarketrisks as part of its annual review process.
Riskrating Risktrend Risk appetite
Link to
strategicpriorities
Very high No change Averse
Within tolerance
1
5
Risk owners Group Director of Strategic Partnerships and External
Affairs, Group Planning Director and Regional Chairs
Risk description
Failure to anticipate, respond or adapt to changes in Government policy could
materially affect the delivery of our strategy. The housebuilding industry is
becoming increasingly regulated, and can be heavily impacted by political
decisions at both national and local level. The delivery of our strategy can be
materially affected by political decisions in areas such as planning, regulatory
costs, support schemes or specific industry taxation. These have the potential
to adversely affect our revenues, margins, tax charges and asset values,
andimpact on the viability of future land investments.
Key mitigations
·
Alignment of our mission and strategy to the UK Government’s
objectiveofaccelerating the delivery of new homes over the course
ofthecurrent Parliament.
·
We have expertise in managing and responding to relevant areas subject
to Government involvement at both local and national level, including
through our Group Land, Planning, Technical and External Affairs
departments, and through engagement with industry bodies.
·
A focused and methodical approach has been established to build
relationships with councils and support alignment of development with
localpriorities.
·
We also engage and participate in industry groups, including theHBF.
·
Government policy and political risks are subject to designated material
controls within our internal control framework.
Risk monitoring measures
·
The Executive Committee and Board are routinely apprised of likely
evolutions in Government housing policy through the close monitoring
ofour External Affairs, Technical and Land and Planning departments.
·
Planning refusal rates are monitored closely to ensure our approach can
beadjusted where necessary.
·
Routine principal risk reporting to the Board includes updates on political
evolutions at national and local levels.
Riskrating Risktrend Risk appetite
Link to
strategicpriorities
Medium No change Averse
Within tolerance
2
5
Risk owners Group Strategy & Regulatory Director
andGroupSustainability Director
Risk description
Failure to respond effectively to the UK’s transition to a lower-carbon and
moresustainability-focused economy, including evolving legal and regulatory
requirements and changes in customer perceptions and priorities could adversely
affect planning decisions, our cost base and access to key materials and skills.
Increased physical risks are also developing from climate change, with greater
frequency of extreme weather events such as storms and flooding having the
potential to cause increased disruption to construction activities.
Key mitigations
·
We consider sustainability issues and the potential impacts of climate
change routinely in key business decisions, from land acquisition through
toplanning and build processes.
·
Development of a decarbonisation pathway to 2045 (see pages 31 to 34)
·
Land appraisals reflect cost impacts from regulatory changes (e.g. Future
Homes Standard).
·
Our UK-wide network of sites minimises the potential impact of localised
extreme weather events.
·
Climate and sustainability risks are subject to designated material controls
within our internal control framework.
Risk monitoring measures
·
The Sustainability Committee meets regularly to review progress on our
climate and sustainability-related initiatives.
·
Management reporting includes key climate and sustainability indicators
such as CO
2
emissions, diesel usage and waste generation.
See TCFD Report pages 59 to 69
·
Our Scope 1, Scope 2, Scope 3 category 1 (purchased goods and
services) and Scope 3 category 11 (use of sold products) emissions are
subject to external review.
·
The Board considers the effectiveness of the Group’s risk management and
internal control framework, including controls around climate and
sustainability risks as part of its annual review process.
1
UK economic and market conditions
2
Government policy and political risk
3
Climate change and sustainability
External risks
Key priorities
1
Build quality and safety
2
Customers at the heart of our business
3
Disciplined growth: high-quality land investment
4
Industry-leading financial performance
5
Supporting sustainable communities
Read more on pages 16 and 17
Persimmon Plc Annual Report 2025 – 73Financial statementsGovernance Other informationStrategic report
Riskrating Risktrend Risk appetite
Link to
strategicpriorities
Medium Decrease Averse
Within tolerance
1
Risk owners Group HS&E Committee, Group HS&E Director, Group
Construction Director, and Group Special Projects Director
Risk description
Failure to safeguard our sites, or to fully adhere to the robust requirements of the
Group’s
HS&E management system could result in serious injury or loss of life, or
damage
to the natural environment. In addition to the human impacts of any
health, safety or environmental breach or incident, there is potential for
reputational damage, construction delays and financial penalties.
Key mitigations
·
Comprehensive HS&E management system, certified to the ISO45001
standard, to support safe working practices.
·
Training programmes to embed our policies effectively.
·
Award-winning Target Zero initiative to drive awareness of workplace
safety and reduce the volume of safety-related incidents in our operations.
·
Inspection regime led by our Group HS&E department.
·
Engagement with industry forums and best practice groups.
·
HS&E risks are subject to designated material controls within our internal
control framework.
Risk monitoring measures
·
The Group HS&E Director provides regular narrative and KPI reporting
tothe Board on HS&E matters.
·
Data from inspections by the Group HS&E department feeds into
management reports at all levels of the Group.
·
Health & Safety Committees are in place for the Group as a whole, and
atoperating company level, to monitor HS&E performance and trends.
·
Assurance provided through Group Risk & Internal Audit department
programme of HS&E audits, with results and follow-up of actions reported
to both Executive management and the Audit & Risk Committee.
·
The Board considers the effectiveness of the Group’s risk management and
internal control framework, including HS&E controls as part of its annual
review process.
Riskrating Risktrend Risk appetite
Link to
strategicpriorities
High No change Averse
Within tolerance
1
2
Risk owners Group Construction Director, Group Head of Building
Safety, and Group Special Projects Director
Risk description
Failure to execute construction activities in line with applicable legal and
regulatory requirements could result in building safety defects, which could pose
potential risk to resident safety, reputational damage, and remediation costs.
Good progress has been made on legacy building safety remediation,
withmany developments resolved and interim measures established to ensure
resident safety for those awaiting remediation. Risks remain if remediation is
subject to delay or disruption due to the complex nature of the works, lack of
availability of skilled contractors or evolutions in regulation or should further
buildings requiring remediation be identified. These could expose us to
additional costs and reputational damage.
Key mitigations
·
The Group Construction department, including the specialist Building
Safety function, provides oversight to ensure continued alignment to
goodpractice in building safety over the lifecycle of the homes we build.
·
For legacy buildings, our dedicated Special Projects team provides oversight
on the assessment of any remediation required, the contracting, inspection
and completion of works.
·
Independent Quality Controllers, reporting centrally, provide assurance
onthe quality and status of remediation works.
·
Assumptions on the estimated financial costs associated with the legacy
remediation works have been subject to comprehensive challenge and
areregularly reassessed.
Risk monitoring measures
·
The Board receives routine reporting on the progress of the works
onlegacy buildings.
·
The Finance team monitors costs incurred and provides assurance
ontheutilisation and ongoing appropriateness of our provision.
·
The Group Risk & Internal Audit department conducts routine audit
engagements on construction activities and their alignment to internal
procedures and regulatory requirements.
5
Building safety and legacy buildings
4
HS&E event
Health, safety and environment (HS&E) risks
Riskrating Risktrend Risk appetite
Link to
strategicpriorities
High No change Cautious
Within tolerance
3
Risk owners Group Planning Director, Group Director of Land Operations,
Group Director of Transformation and Land Strategy, Group
Strategic Land Director and Regional Chairs
Risk description
Failure to maintain an adequate supply of high-quality land, due to
delaysinplanning approval, or inability to identify and procure land
atappropriate levels of return, could affect our ability to grow our outlet
position,impacting future sales, margins and profits, jeopardising the
deliveryof our strategic objectives.
Key mitigations
·
Robust scrutiny for all potential land transactions through comprehensive
viability assessments, with Land Committee process to approve transactions
which demonstrate both appropriate returns and alignment with our
overallstrategy.
·
Established processes to build relationships with councils, land agents and
promoters, supporting alignment of potential development with local priorities.
·
Strengthened processes for development of strategic land, including
investments in our in-house teams and the acquisition of Lone Star Land.
·
Land and planning risks are supported by designated material controls
within our internal control framework.
Risk monitoring measures
·
The Group’s Land Committee meets regularly to review our current land
holdings and future needs, and to assess potential land transactions.
·
Volume of planning permissions obtained is monitored and reported
onroutinely, including tracking against legal completions via principal
riskreporting.
·
Outlet numbers are tracked routinely by management and subject
todetailed reporting.
·
The Board considers the effectiveness of our land and planning controls
aspart of its annual review process.
6
Land and planning
Operational risks
Principal and emerging risks continued
PRINCIPAL RISKS CONTINUED
Key priorities
1
Build quality and safety
2
Customers at the heart of our business
3
Disciplined growth: high-quality land investment
4
Industry-leading financial performance
5
Supporting sustainable communities
Read more on pages 16 and 17
Financial statementsGovernance Other informationStrategic report74 – Persimmon Plc Annual Report 2025
Riskrating Risktrend Risk appetite
Link to
strategicpriorities
Medium No change Cautious
Within tolerance
1
4
Risk owners Chief Commercial Officer, Group Commercial Director
and Group Procurement Director
Risk description
Failure to secure reliable access to materials and skilled subcontract labour
atan appropriate cost could adversely affect build programmes, construction
quality and margins. This risk may become more acute as the UK strives to
deliver a greater volume of new build homes, heightening demand for materials
and labour. Similarly, disruption to our vertical integration model could
constrain supply, causing cost inflation and disruption to build programmes.
Key mitigations
·
We benefit from vertical integration, with security of supply on some
keymaterials through our Brickworks, Tileworks and Space4 facilities.
·
Long-term relationships exist with key suppliers and subcontractors at both
Group-wide and operating company levels.
·
Strategic approach to procurement, led by our Group Procurement team,
with supply chain engagement, established processes for appointing
suppliers and ongoing performance monitoring.
·
Detailed forecasting and planning of material requirements to inform
supplier negotiations, driving value and ensuring availability to align
withbuild programmes.
·
Group Commercial oversight and monitoring of operating company
controls, including robust processes to monitor material purchases and
stock holdings to minimise potential for loss or damage during construction.
Risk monitoring measures
·
The Group Procurement department provides routine monitoring of trends
and supplier performance.
·
Site budgets and performance, including availability and pricing of
materials, are assessed through the bi-monthly valuation process.
·
The Chief Commercial Officer attends the Management Risk Committee
andprovides updates on key supply chain issues.
·
The Board reviews the effectiveness of the Group's risk management
andinternal control framework, including supply chain controls, as part
ofitsannual review process.
Riskrating Risktrend Risk appetite
Link to
strategicpriorities
Low No change Cautious
Within tolerance
3
4
Risk owners Group CFO, Group Financial Controller and Senior
Group Accountant
Risk description
The Group’s strategy relies upon access to significant working capital to fund
investments in land and work in progress. This includes periods when we will
be required to draw upon our Revolving Credit Facility (’RCF’). Failure to manage
and optimise cash requirements effectively could lead to unnecessarily high
borrowing costs, breaches of loan covenants, or an inability to take advantage
of land or other investment opportunities that could benefit the Group.
Key mitigations
·
We closely monitor our cash position and forecast cash utilisation to ensure
these are sufficient to support land investments, fund work in progress and
meet other requirements identified through annual budgets and business
planning processes.
·
Established governance processes are in place to scrutinise land investment
decisions through the Land Committee, and work in progress through the
bi-monthly valuations.
·
The Group’s RCF is considered sufficient to meet all our projected funding
requirements in the short to medium term. The RCF is in place to July 2030.
·
Liquidity and financing risks are supported by material controls within our
internal control framework.
Risk monitoring measures
·
Utilisation of the RCF and optimisation of cash deposits are monitored daily
by the Group Finance team.
·
Covenants on the RCF are monitored and subject to periodic certification.
·
The Board is provided with routine reporting on our actual and forecast
cashpositions.
·
The Board considers the effectiveness of the Group's risk management and
internal control framework as part of its annual review process, including
controls relating to liquidity and treasury management.
Riskrating Risktrend Risk appetite
Link to
strategicpriorities
Medium No change Cautious
Within tolerance
1
Risk owners Chief HR Officer and Director of Talent & Diversity
Risk description
Failure to attract, retain and develop a suitably skilled workforce, supported
by effective leadership and succession planning, could adversely impact upon
delivery of our strategy. An ageing workforce and continued competition for
skilled labour in our sector risks exacerbating labour shortages with potential
for increased costs, operational disruption and delays to build programmes.
Key mitigations
·
Attraction of high-quality workforce through the development of
acompelling employee value proposition.
·
Development of talent through comprehensive training programmes
including apprenticeships, Graduate Scheme and the Persimmon Pathways
in core disciplines.
·
Succession planning programmes to support career development
andretaintalent.
·
Competitive remuneration packages to attract and retain talent at all levels,
including our Real Living Wage commitment, Sharesave and other
employee benefits.
·
Employee engagement monitoring through surveys and our Employee
Engagement Panel.
Risk monitoring measures
·
The Group HR department provides reporting, including metrics
suchastraining hours, to management at all levels of the Group.
·
The Chief HR Officer is a member of the Group Executive Committee,
andprovides additional periodic reports and updates to the Board on
employment trends.
·
Feedback from the Employee Engagement Panel and annual
EmployeeEngagement Survey is reviewed by the Board and shared
withoperational management.
·
Routine principal risk reports to the Audit & Risk Committee include
staffturnover data and commentary from the Group HR department.
7
Supply chain
8
Finance and liquidity
9
Skilled workforce, retention
andsuccession
Key priorities
1
Build quality and safety
2
Customers at the heart of our business
3
Disciplined growth: high-quality land investment
4
Industry-leading financial performance
5
Supporting sustainable communities
Read more on pages 16 and 17
Persimmon Plc Annual Report 2025 – 75Financial statementsGovernance Other informationStrategic report
Riskrating Risktrend Risk appetite
Link to
strategicpriorities
High Increase Averse
Within tolerance
2
4
5
Risk owners Management Risk Committee, Chief Information Officer,
Chief Information Security Officer, and Group Risk Manager
Risk description
Failure to prevent, detect or respond effectively to a cyber attack or other
material event causing the failure or disruption of core systems, data loss,
orsupply chain interruption could adversely affect operational activities,
resulting in significant financial costs and reputational damage.
Key mitigations
·
Oversight and challenge from the Management Risk Committee.
·
Disaster recovery protocols and supporting fallback options for key
operational processes and systems under Business Continuity Planning
(’BCP’) measures.
·
Robust IT security measures aligned to Cyber Essentials Plus, subject to
continuous improvement through programmes of investment including our
initial Cyber Security Infrastructure Improvement Programme (’CSIIP’) in
thefirst half of 2025 and the subsequent and ongoing Cyber Risk Reduction
(’CRR’) programme.
·
Routine in-house training and communications to promote awareness of
cyber security and data protection issues, including threats evolving from
the increased use of Artificial Intelligence.
·
Regular reviews by external partners, including penetration testing,
auditengagements and scenario planning, to provide assurance on
theeffectiveness of our cyber control environment.
·
Business resilience, including cyber risk, are subject to material controls
within our internal control framework.
Risk monitoring measures
·
Regular Board updates provided by the CIO, with periodic presentations by the
CIO and CISO to the Audit & Risk Committee on evolutions in our cyber posture.
·
Routine CIO reporting to the Group Executive Committee, ensuring IT and cyber
risks are actively considered in all key business decision making.
·
The CIO attends the Management Risk Committee and provides updates on key
cyber issues, supported by reporting and presentations from the Group CISO.
·
The Management Risk Committee monitors the implementation of actions arising
from BCP tests, with updates provided to the Executive Committee.
10
Business resilience
Riskrating Risktrend Risk appetite
Link to
strategicpriorities
Medium No change Cautious
Within tolerance
1
2
4
5
Risk owners Group Director of Strategic Partnerships and External
Affairs, Group Investor Relations Director, Group
Construction Director, Chief Customer Experience Officer,
and Regional Chairs
Risk description
Failure to deliver and maintain high standards across areas such as build
quality, customer experience and health and safety, could damage our
relationships with key stakeholders such as landowners, local authorities,
customers, the supply chain, regulatory bodies and investors. This could
affectour ability to deliver our strategic objectives.
Key mitigations
·
Board and Executive Committee-level commitment to a culture of
excellence, with particular emphasis on high quality in construction,
healthand safety and customer care.
·
Significant and ongoing investments in operational capabilities to deliver
high-quality new homes and customer experience.
·
Processes to build positive relationships with all our stakeholders, including
local authorities and the communities in which we build, through addressing
housing need, supporting local employment and making valuable
contributions to local infrastructure and community causes.
·
Reputational risk considerations are subject to material controls within our
internal control framework.
Risk monitoring measures
·
Reporting to the Executive Committee and Board on key operational
performance measures covering build quality and customer experience.
·
The Board also oversees stakeholder engagement, including monitoring
feedback from shareholders, and the results of our Employee Engagement
Surveys and the Employee Engagement Panel.
·
Routine principal risk reports issued to the Audit & Risk Committee include
arange of internal and external indicators on reputation, such as NHBC
survey data, Trustpilot scores and management of customer complaints.
Riskrating Risktrend Risk appetite
Link to
strategicpriorities
Medium No change Averse
Within tolerance
1
2
5
Risk owners Chief Customer Experience Officer, Group Construction
Director, Group Director of Legal Services, Company
Secretary, and Group Strategy & Regulatory Director
Risk description
Failure to comply with any of the increasingly complex regulations we face,
whether specific to our housebuilding operations or those applicable to other
large UK listed businesses, could result in reputational damage, operational
disruption and the imposition of financial penalties.
Key mitigations
·
Comprehensive management systems to ensure regulatory and legal
compliance, including policies, procedures and internal training for key
areas of regulation.
·
Oversight from specialists within Group-level functions to ensure
compliance with key regulations.
·
Second-line inspection regimes (e.g. from IQCs and HS&E Advisors) supported
by internal audits and external reviews to support regulatory compliance.
Risk monitoring measures
·
The Board and Audit & Risk Committee are provided with regular updates
on core areas of regulatory compliance and preparation for upcoming
regulatory change.
·
Compliance monitoring activities are subject to regular review
andindependent assurance.
·
The Board considers the effectiveness of the Group's risk management and
internal control framework as part of its annual review process, including
controls to support regulatory compliance.
11
Reputation
12
Regulatory compliance
Reputational and regulatory risksOperational risks continued
Principal and emerging risks continued
PRINCIPAL RISKS CONTINUED
Key priorities
1
Build quality and safety
2
Customers at the heart of our business
3
Disciplined growth: high-quality land investment
4
Industry-leading financial performance
5
Supporting sustainable communities
Read more on pages 16 and 17
Financial statementsGovernance Other informationStrategic report76 – Persimmon Plc Annual Report 2025
PERSIMMON’S PROSPECTS AND VIABILITY
Viability statement
Persimmon’s prospects and viability
The long-term prospects and viability of the business
are a consistent focus of the Board when determining
and monitoring the Group’s strategy. The identification
and mitigation of the principal risks facing the business,
which have been updated to reflect current UK economic
conditions and uncertainties, also form part of the
Board’s assessment of long-term prospects and viability*.
* The Directors have assessed the longer-term prospects of the
Group in accordance with provision 31 of the UK Corporate
Governance Code 2024.
Assessing Persimmon’s
long-term prospects
Persimmon has built a strong position in the UK’s
housebuilding market over many years, recognising
the potential for long-term growth across regional
housing markets. The Board recognises that the
long-term demographic fundamentals of continued
positive population growth and new household
formation, together with the requirement to replace
and improve the quality of the country’s housing stock,
provide a long-term supportive backdrop for the
industry. However, the Board and the Group’s strategy
recognises the inherently cyclical nature of the UK
housing market. The Group has therefore been able
tomaintain a position of strength with high-quality
land holdings and a strong balance sheet throughout
the disruption caused by the cost of living crisis and
ongoing geopolitical uncertainty. The future impacts of
these disruptions in creating uncertainty within the UK
economy and subsequent effect on the Group’s sales
and construction programmes remain uncertain. The
Board has considered these potential impacts in depth
when assessing the long-term prospects of the Group.
Whilst this uncertainty remains, Persimmon possesses
the sound fundamentals required to realise the Group’s
purpose and ambitions and deliver sustainable success:
·
talented teams focused on consistently delivering
good quality new homes for our customers;
·
high-quality land holdings that allow us to create
attractive places in areas where people wish to live
and work;
·
strong customer and local community relationships;
·
continued investment in the training and
development of our teams;
·
market knowledge, expertise and industry know-how;
·
long-term healthy supplier engagement; and
·
vertical integration ensuring internalised supply
ofkey materials.
By continuing to build on these solid foundations
through, for example, The Persimmon Way and our
ongoing investments in the customer experience, its
land, development sites and in its supply chain, the
Group aims to create enduring value for the communities
we serve and our wider stakeholders. This is reflected
within the Group’s materiality assessment, which
ensures a thorough review of stakeholder interests is
incorporated within the assessment of the Group’s
long-term prospects.
The Group adopts a disciplined annual business
planning regime, which is consistently applied
andinvolves the management teams of the Group’s
housebuilding businesses and senior management,
with input and oversight by the Board. The Group
combines detailed five-year business plans generated
by each housebuilding business from the ‘bottom up’,
with projections constructed from the ‘top down’ to
properly inform the Group’s business planning over
these longer-term horizons. Zero-based 12-month
budgets are established for each business annually.
This planning process provides a valuable platform,
which facilitates the Board’s assessment of the Group’s
short and long-term prospects. Consideration of the
Group’s purpose, current market position, its five key
priorities and overall business model, and the risks that
may challenge them are all included in the Board’s
assessment of the prospects of the Group.
Key factors in assessing the
long-term prospects of the Group:
1. The Group’s current market positioning
·
Sales network of active developments across the
UKproviding geographic diversification of
revenuegeneration.
·
Three distinct brands providing diversified products
and pricing deliver further diversification of sales.
·
Imaginative and comprehensive master planning
ofdevelopment schemes with high amenity value
tosupport sustainable, inclusive neighbourhoods
which generate long-term value to the community.
·
Disciplined land replacement reflecting the extent
and location of housing needs across the UK
provides a high-quality land bank in the most
sustainable locations supporting future operations.
·
Long-term supplier and subcontractor relationships
providing healthy and sustainable supply chains.
·
Sustained investment to support higher levels
ofconstruction quality and customer service
throughthe implementation of initiatives such
asThePersimmon Way.
·
Strong financial position, year end net cash and a
£700m working capital credit facility that has
during the year been extended to July 2030.
·
During January 2026 the existing £700m credit
facility was increased by £50m to £750m. In addition
a £250m term loan was agreed with each of our
banking partners. The loan term is two years through
to January 2028 with the ability to extend for a
further year.
2. Strategy and business model
·
Strategy focuses on the risks associated with
thehousing cycle and on minimising financial
riskand maintaining financial flexibility.
·
Focusing on constructing new homes for our customers
to the high-quality standards that they expect and
helping to create attractive neighbourhoods.
·
Strategy recognises the Group’s ability to generate
surplus capital beyond the reinvestment needs of
thebusiness.
·
Substantial investment in staff engagement,
trainingand support to sustain operations over
thelong-term.
·
Disciplined land replacement reflecting the extent
and location of housing needs across the UK
provides a high-quality land bank in the most
sustainable locations supporting future operations.
·
Long-term supplier and subcontractor relationships
providing healthy and sustainable supply chains.
·
Approach to land investment and development
activity provides the opportunity to successfully
deliver much-needed new housing supply and
create value over the long- term.
·
Differentiation through vertical integration,
achieving security of supply of key materials and
complementary modern methods of construction
tosupport sustainable growth.
·
Simple capital structure maintained with
nostructural gearing.
Persimmon Plc Annual Report 2025 – 77Financial statementsGovernance Other informationStrategic report
Key factors in assessing the
long-term prospects of the Group:
continued
3. Principal risks associated with the Group’s
strategy and business model include
·
Disruption to the UK economy and housing market
conditions adversely affecting demand for and
pricing of new homes, availability and pricing of
land, or contributing to inflationary pressures.
·
Changes in Government policy affecting the
housebuilding sector, such as those relating to
taxation, planning conditions or market support.
·
Climate change risk, comprising both transition
(legal and regulatory changes affecting the
housebuilding sector) and physical (operational
disruption through more frequent and prolonged
adverse weather) elements.
·
Failure to safeguard our sites, our people, our
customers or the environment we work in could
impact our reputation or result in financial penalties.
·
Reputational damage and increased costs resulting
from disruption or delays to scheduled remediation
works to ensure resident safety.
·
Failure to maintain an adequate supply of high-quality
land due to planning constraints or inability to
procure land at appropriate levels of return.
·
Disruption to supply chains, affecting the
availability of key construction materials.
·
Ability of the Group to access significant working
capital to fund investments in land and work in progress.
·
Adverse market competition and construction
workforce trends, resulting in an inability to
attractand retain high-quality workers and an
appropriately experienced management team.
·
Cyber and data risk, including potential for significant
or prolonged operational disruption arising from
cyber attack or failure of critical IT systems.
·
Requirement to maintain a reputation for high
standards of business conduct across all aspects
ofoperations whilst working within an increasingly
complex regulatory landscape.
See pages 73 to 76 for the full list of principal risks
together with detailed descriptions
Disciplined strategic
planningprocess
The prospects for the Group are principally assessed
through the annual strategic planning review process
conducted towards the end of each year. The management
team from each of the Group’s housebuilding businesses
produce a five-year business plan with specific objectives
and actions in line with the Group’s strategy and business
model. These detailed plans reflect the development
skill base of the local teams, the region’s housing market,
strategic and on-market land holdings and investments
required to support their objectives. Special attention
is paid to construction programmes and capital
management through the period to ensure the appropriate
level of investment is made at the appropriate time to
support delivery of the plan. Emerging risks and opportunities
in their markets are also assessed at this local level.
Senior Group management review these plans and
balances the competing requirements of each of the
Group’s businesses, allocating capital with the aim
ofachieving the long-term objectives of the Group
including our five key priorities. The five-year plans
provide the context for setting the annual budgets for
each business for the start of the new financial year
inJanuary, which are consolidated to provide the
Group’s detailed budgets. The Board reviews and
agrees both the long-term plans and the shorter-term
budgets for the Group.
The outputs from the business planning process are
used to support development construction planning,
impairment reviews, funding projections, reviews of
theGroup’s liquidity and capital structure, and for the
identification of surplus capital available for return to
shareholders via the Group’s Capital Allocation Policy.
Assessing Persimmon’s viability
The Directors have assessed the viability of the
Groupover a five-year period, taking into account
theGroup’s current position and the potential impact
of the principal risks facing the Group.
The Directors consider the use of a five-year period as
the most appropriate time horizon for the purpose of
assessing the viability of the Group, as it reflects the
business model of the Group, with new land investments
generally taking at least five years to build and sell
through, and for the development infrastructure to
beadopted by local authorities.
A key feature of the Group’s strategy, as documented
in the Strategic Report and set out in the Group’s capital
allocation priorities, is the Group’s commitment to
maintain capital discipline over the long term through
the housing cycle.
The key principles of the Capital Allocation Policy are:
·
maintain a strong balance sheet and low leverage
through the housing cycle, while prioritising our
building safety remediation works;
·
invest in the long-term performance and growth
ofPersimmon through continuing our disciplined
approach to land acquisition and investment into
enhancing the Group’s operational capabilities;
·
pay ordinary dividends at a sustainable level that is
well covered by post-tax profits through the housing
cycle, thereby balancing capital retained for investment
in the business with those dividends; and
·
return any excess capital to shareholders from time
to time, through a share buyback or special
dividend as considered to be appropriate at
thetime.
On 11 March 2025, in line with the Capital Allocation
Policy, the Directors declared a final dividend of
40pper share in respect of the financial year ended
31December 2024. This final dividend approved at
the 2025 Annual General Meeting and was paid to
shareholders on 11 July 2025.
On 13 August 2025, the Directors announced
theirintention to pay 20p per share as an interim
cashdividend in respect of the financial year to
31December 2025. This interim dividend was paid
toshareholders on 7 November 2025.
On 10 March 2026, the Directors declared a final
dividend of 40p per share in respect of financial year
ended 31 December 2025.
On an annual basis, the Directors review financial
forecasts used for this Viability Statement as explained
in the disciplined strategic planning processes outlined
earlier. These forecasts incorporate assumptions on
issues such as the timing of legal completions of new
homes sold, average selling prices achieved, profitability,
working capital requirements and cashflows.
The Directors have also carried out a robust assessment
of the principal and emerging risks facing the Group,
and how the Group manages those risks, including
those risks that would threaten its strategy, business
model, future operational and financial performance,
solvency and liquidity. This risk assessment was also
informed by the performance of the Group’s materiality
assessment, incorporating views from the Group’s key
stakeholders, and through a comprehensive survey to
incorporate input from the Board and senior management
from across the Group. The Directors have considered
the impact of these risks on the viability of the business
by performing a range of sensitivity analyses when
compared to base position being the actual performance
for full year 2025, including severe but plausible scenarios
materialising together with the likely effectiveness of
mitigating actions that would be executed by the Directors.
Viability statement continued
Financial statementsGovernance Other informationStrategic report78 – Persimmon Plc Annual Report 2025
The scenarios emphasise the potential impact of severe
market disruption including, for example, the effect of
economic disruption from a cost of living crisis or a war
on the short to medium-term demand for new homes.
The scenarios’ emphasis on the impact on the cash
inflows of the Group through reduced new home sales
is designed to allow the examination of the extreme
cash flow consequences of such circumstances occurring.
The Group’s cash flows are less sensitive to supply-side
disruption given the Group’s sustainable business
model, flexible operations, agile management team
and off-site manufacturingfacilities.
The first scenario modelled is a severe but plausible
downside scenario that models a fall in housing revenue,
when compared to full year 2025, of c.53% for full
year 2026 followed by a gradual recovery. The
housing revenue modelled factors in changes in both
volumes and average selling prices. The assumption
used in this scenario reflects the experience management
gained during the global financial crisis from 2007 to
2010, it being the worst recession seen in the housing
market since World War Two.
A second, even more extreme, scenario assumes
thesame significant downturn in 2026 followed by a
period of enduring depression of the UK economy and
housing market through to 2030, assuming that neither
volumes nor revenue recover, but that mitigations
within management’s control are exercised.
In each of these scenarios, cash flows were assumed
to be managed consistently, ensuring all relevant land,
work in progress and operational investments were
made in the business at the appropriate time to deliver
the projected new home legal completions. Each scenario
fully reflects the current estimate of cash outflows,
value and timing associated with the legacy buildings
provision. The Directors assumed they would continue
to make well-judged decisions in respect of capital
allocation payments, ensuring that they maintained
financial flexibility throughout.
Based on this assessment, the Directors confirm that
they have reasonable expectation that the Group will
be able to continue in operation and meet its liabilities
as they fall due over the period to the end of
31December 2030.
Tracy Davison
Company Secretary
9 March 2026
Persimmon Plc Annual Report 2025 – 79Financial statementsGovernance Other informationStrategic report
UK Corporate Governance Code 2024
The UK Corporate Governance Code 2024 was
applicable to the Company for the year ended
31December 2025 (with the exception of Code
Provision 29, which is effective from 1 January
2026). During the year, the Board has fully complied
with the UK Corporate Governance Code2024.
The Board continues to review its governance
procedures to maintain proper control and
accountability. The UK Corporate Governance
Code2024 is available from the Financial Reporting
Council, at www.frc.org.uk. The table opposite
references where further information can be found
regarding the application of the Code’sPrinciples.
1. Board leadership and Company purpose Pages
A Board of Directors 86 and 87
B Purpose, values, strategy and culture 1 to 79, 91 and 92
C Governance reporting and departures from the Code 80 to 143
D Shareholder and stakeholder engagement 51 to 57, 94
E Workforce policies and practices 95
2. Division of responsibilities
F Role of the Chairman 96 and 97
G Division of responsibilities 95 to 97
H Role of the Non-Executive Directors 96 and 97
I Board policies, processes, information, time and resources 96 and 97
3. Composition, succession and evaluation
J Appointments to the Board and succession planning 101 to 107
K Board skills, experience and knowledge 86 and 87
L Board annual performance review 98 to 100
4. Audit, risk and internal control
M Independence and effectiveness of internal and external auditors, and integrity of
financial and narrative statements
108 to 114
N Fair, balanced and understandable assessment 112, 117 and 143
O Risk management and internal control 70 to 76, 108 to 114
5. Remuneration
P Supporting strategy and long-term success, aligned to purpose and values 118 to 142
Q Remuneration policy 119 and 120, 124 to 130
R Independent judgement and discretion 118 to 142
Financial statementsGovernance Other informationStrategic report80 – Persimmon Plc Annual Report 2025
Governance at a glance
COMPOSITION OF THE BOARD
Board tenure
As at
31 December
2025
0–3 years 55.6%
3–6 years 33.3%
6–9 years 11.1%
Board independence
(excluding Chairman)
As at
31 December
2025
Executive Directors 25%
Independent
Non-Executive Directors 75%
Board gender diversity
As at
31 December
2025
Male 55.6%
Female 44.4%
Board ethnic diversity
As at
31 December
2025
White 8/9
Asian/British Asian 1/9
Persimmon Plc Annual Report 2025 – 81Financial statementsGovernance Other informationStrategic report
GOVERNANCE KEY DATES 2025
January
Appointment of Anand Aithal as
Independent Non-Executive Director.
March
Announcement of Final Results
for2024.
July
Proposed closure of Competition and
Markets Authority (’CMA’) investigation
into housebuilders announced.
May
Annual General Meeting.
Appointment of AnnemarieDurbin
as SeniorIndependent Director.
Sale of FibreNest announced.
June
Board site visits to Persimmon Homes
Hampton Woods and Charles Church
Harlestone Grange.
August
Announcement of Half-Year Results
for2025.
FibreNest sold to BUUK Infrastructure.
External audit tender process concluded.
GOVERNANCE
IN ACTION
The Board’s Annual Strategy Day was held at the
Space4 factory in Birmingham, enabling the
Board to see the factory’s new automated and
robotic technology in action.
October
The passing of DuncanDavidson,
founderand Life Presidentofthe Company.
Board Annual Strategy Day, including
tour of the Space4 factory, Birmingham.
Governance at a glance continued
Financial statementsGovernance Other informationStrategic report82 – Persimmon Plc Annual Report 2025
Chairman’s introduction to governance
On behalf of the Board,
Iampleased to present the
GovernanceReport for the
yearended 31 December 2025.
Together with the accompanying
committee reports, this section
demonstrates how the Group has
maintained high standards of
corporate governance, providing
the Board with clear oversight of
thematerial issues facing the Group
and ensuring that a robust governance
framework is in place to support
sustainable growth and deliver
long-term shareholder value.
During the year, the revised UK Corporate
Governance Code 2024 came into effect, introducing
important changes to the governance landscape. The
Board has recognised these developments and closely
monitored the Group’s preparations, particularly in
strengthening risk management, internal controls, and
assurance processes. I am pleased to confirm that the
Group has fully complied with the Code’s requirements.
Customer experience has continued to be a key
priority for the Group and has been regularly reviewed
by the Board. Our investment in customer service and
build quality has enabled us to maintain our five-star
customer satisfaction rating for the fourth consecutive
year and achieve our highest-ever Trustpilot score,
rated ‘Excellent’. Through our culture — aligned with
our Mission, Vision, and Values as set out on page 1
— we have continued to deliver strong performance,
successfully completing 11,905 new homes during
theyear despite affordability constraints, geopolitical
events and challenging market conditions.
Board composition,
successionand performance
As noted in our 2024 Annual Report, Anand Aithal
joined the Board as an Independent Non-Executive
Director on 1 January 2025. Following his appointment,
Anand undertook a comprehensive and tailored induction
programme, including meetings with senior executives
across the Group, engagement with key external
stakeholders, and operational site visits. Anand is
already making a significant contribution, bringing
awealth of experience from many sectors and fresh
perspectives that strengthen the Board’s effectiveness.
Nigel Mills stepped down from the Board and
asSenior Independent Director, at Persimmon’s
AnnualGeneral Meeting on 1 May 2025, after nine
years of service. Nigel made an immense contribution,
providing wise and valuable counsel during his tenure.
Annemarie Durbin was appointed as Senior Independent
Director from 1 May 2025. Since her appointment as
Senior Independent Director, Annemarie has fostered
open dialogue and served as a trusted sounding
board for me and her fellow members of the Board.
Annual board
performancereview
In line with the Board Performance Review cycle,
theBoard continued to monitor its effectiveness during
the year. This was achieved through a rigorous annual
Board Performance Review, conducted internally and led
by the Chairman with support from the Company Secretary.
The Board Performance Review utilised BoardClic,
adigital board performance review platform, and
involved the Board and its Committees completing
comprehensive questionnaires. To ensure alignment
with corporate governance best practice, the questions
were based on the UK Corporate Governance Code
2024. The outcome confirmed that the Board and its
Committees continue to operate to a high standard.
Asnoted in the 2024 Annual Report, the externally
facilitated Board Performance Review, which was
undertaken in 2024, identified areas for potential
improvement, and progress has been made against
these during the current year.
Further details of the annual Board Performance Review
can be found onpages 98 to 100
We have a robust governance
framework to support sustainable
growth and deliver long-term
shareholdervalue.
Roger Devlin
Chairman
Persimmon Plc Annual Report 2025 – 83Financial statementsGovernance Other informationStrategic report
Sustainability
Our Sustainability Pillars underpin the Group’s strategic
priorities and ensure that sustainability remains integral
to our operations, guiding how we deliver on our
responsibilities to our stakeholders. The Board reviewed
progress toward the Group’s net zero carbon targets
and received regular strategy updates on current and
future sustainability risks and mitigation plans. The
Group Sustainability Director presents regularly to
theBoard, including updates on the carbon reduction
glide path, aligned with the Group’s science-based
reduction targets.
In anticipation of the Future Homes Standard, the
Board considered the Group’s readiness and pathway
for implementation. Updates were provided on key
matters, including climate resilience and TCFD reporting,
alongside reviews of sustainability performance data
to demonstrate the Group’s ongoing management of
climate-related risks.
Looking ahead, the Board will prepare for evolving
regulatory requirements and continue to oversee that
the Group’s key priorities align with the Group’s
sustainability strategy, including via the Group’s
investment in vertical integration where the use of our
own timber frames, concrete bricks and tiles are key
contributors to our sustainable construction and
reduction in our carbon emissions. The Board will
alsocontinue to monitor the Group’s decarbonisation
pathway to 2045.
Remuneration
During the year, the Remuneration Committee reviewed
the Remuneration Policy. Minor changes to the policy
will be submitted for shareholder approval at the
Annual General Meeting in April 2026. The Committee
agreed that the Remuneration Policy continues to be
appropriate and effective, with no material changes to
its structure or quantum. Minor adjustments are proposed,
including bringing our shareholding guidelines into
line with market and sector practice, reducing bonus
deferral once shareholding guidelines have been
achieved and simplifying the two-year post-employment
shareholding guideline. To ensure transparency and
alignment with stakeholder expectations, the Committee
engaged with external advisors and undertook targeted
consultation with major shareholders, led by the Chair
of the Remuneration Committee.
The Remuneration Committee reviews workforce
remuneration and related policies regularly. This
provides valuable insight into the Group’s remuneration
framework and helps to inform the Remuneration
Committee’s policy for executive pay. Using data
presented via the HR Dashboard, the Remuneration
Committee examined comparative workforce data
andtrends, including the CEO pay ratio, bonus
distribution, and average salary increases. Following
this review, the Committee agreed that the Group
Chief Executive and other senior executives should
receive a 3% base salary increase from July 2025,
consistent with the increase applied across the
widerworkforce.
Updates in governance, market insights and stakeholder
feedback were provided to the Remuneration Committee
during the year, including by the Group’s Remuneration
Consultants, Deloitte. This included ensuring that the
Remuneration Committee was abreast of upcoming
changes to reporting regulations and that they
received updates on proxy advisor voting policies.
Risk management
andinternalcontrol
As part of our established annual cycle of work,
andon behalf of the Board, the Audit & Risk
Committee undertook a thorough review of the
Group’s risk management framework and internal
control arrangements, holding discussions covering
the Group’s principal and emerging risks and the
adequacy of the internal controls in place to mitigate
them, with regular reports on these areas considered
during Committee meetings. Outputs from the Management
Risk Committee were considered by the Audit & Risk
Committee, which also reviewed and approved an
updated risk management strategy, which was designed
to further enhance the Group’s maturity in this area.
Throughout the year, the Audit & Risk Committee
considered management’s approach to Artificial
Intelligence (’AI’), including review of the Group’s draft
policy on AI. This has recognised the transformative
potential of AI for some business processes, but noted
the importance of establishing appropriate safeguards
around its deployment. Both the Board and the Audit
&Risk Committee have also remained mindful of the
Group’s potential exposure to cyber security threats
and events, and the importance of strong controls
andresilience measures. Management has provided
updates on ongoing enhancements to the Group’s
cyber security controls, and this focus will continue
into2026.
Assurance
During the year, the Audit & Risk Committee has retained
its focus on the integrity of the Group’s financial
reporting, particularly in areas requiring accounting
judgements or estimates. This has included working to
ensure a continued high-quality external audit, overseeing
a competitive tender process for our external audit
provision. The Committee has also continued to monitor
the ongoing effectiveness and independence of the
Group Internal Audit department and, ahead of
Provision 29 of the UK Corporate Governance Code
2024 coming into force in 2026, providing oversight
of the Group’s programme of work to enhance its
systems of risk management and internal control.
Equality, diversity and inclusion
During the year, the Nomination Committee maintained
its focus on the equality, diversity and inclusion of the
Board and across the wider Group. We are pleased
toreport that the Board is fully compliant with gender
and ethnicity targets set by the Listing Rules, the Parker
Review and the FTSE Women Leaders Review. The
Nomination Committee monitored progress against
the Group’s gender and ethnic diversity targets for
senior management through regular reviews of the
Group’s diversity data, and reviewed the Group’s
Equality, Diversity and Inclusion Policy. The Nomination
Committee also reviewed the strategy to increase the
diversity of the Group’s employees. TheGroup has a
number of employee network groups, including the
Carers’ Network, the Religion and Culture Group,
Persimmon Pride, and the Women’s Network.
The Board received updates on the Group’s HR Strategy,
including the refreshed vision statement and strategic
objectives, and how this fed into the Group’s succession
planning and diversity and inclusion activities. The Board
reviewed initiatives designed to strengthen career
development and the succession pipeline, alongside
key internal promotions. In addition, the Group’s
achievements and future plans for diversity and inclusion
were discussed, with improvements shown in the
Group’s diversity. These developments reinforce
the
Group’s commitment to fostering a culture of belonging
that drives innovation, enhances employee engagement,
and supports sustainable business growth.
Roger Devlin
Chairman
9 March 2026
Chairman’s introduction to governance continued
Financial statementsGovernance Other informationStrategic report84 – Persimmon Plc Annual Report 2025
2025 GOVERNANCE ACTIVITIES
1. Internal Annual Board
Performance Review
·
Questionnaires designed in the context of the
UK Corporate Governance Code 2024 and
corporate governance best practice.
·
Anonymised questionnaire responses,
including scoring and benchmarking,
werereviewed by the Company Secretary
andthe Chairman, and shared with the
BoardCommittee Chairs.
·
Areas of high performance were noted,
andactions for enhancement were agreed.
See pages 98 to 100 for further information
4. Remuneration Policy
·
Conducted a review of the current Remuneration
Policy and concluded that it is functioning well
and supports our strategy andvalues.
·
Engaged with stakeholders as appropriate.
·
In line with stakeholder consensus, maintained
the overall current structure.
·
Ensured that the proposed 2026 Remuneration
Policy continued to align the interests of the
Executive Directors, senior management and
employees
with those of shareholders and wider
stakeholders,
and to ensure appropriate
alignment with values and key priorities.
·
Introduced minor changes to aid administration
and take account of changes in practice since
the 2023 Policy was approved by shareholders.
See pages 124 to 130 for further information
5. Preparation for Code
Provision 29 disclosure
requirement
·
The Audit & Risk Committee has reviewed the
Group’s approach to maintaining an effective
system of internal controls, including management’s
plans to ensure preparedness for the reporting
requirements under Code Provision 29.
·
Received updates from management on the
process taken to identify the Group’s material
controls and to ensure these are both designed
and operating effectively.
·
Reviewed the regular updates from management
on workstreams to improve the formalism and
effectiveness of internal controls.
See pages 113 and 114 for further information
3. External audit tender
·
Followed robust processes to assess the merits
of each prospective audit firm.
·
Included detailed criteria for assessing
thefirms who tendered.
·
Recommendation on auditor appointment
for2026 made to the Board.
See page 113 for further information
2. Achieving FCA diversity
targets
·
44% of Board Directors are women.
·
Annemarie Durbin appointed as Senior
Independent Director during the year.
·
One Board Director is from an ethnic
minoritybackground.
See page 106 for further information
Quick facts
·
The Board has six Independent Non-Executive
Directors. The Chairman was independent on
appointment – See pages 86 and 87.
·
All directors have effectively contributed to the
Board throughout the year – See page 99.
·
Corporate governance is at the forefront of the
Board’s agenda and during the year the
Board fully complied with the UK Corporate
Governance Code 2024 – See page 80.
·
During the year, the Board continued to
engage with stakeholders.
·
Following the 2025 Board Performance
Review, the Board concluded that each
director has performed well in their roles, has
dedicated enough time to the role, and has
shown a high level of independence and
commitment – See page 99.
·
The directors are subject to annual re-election
and the Board considers that all directors be
reappointed at the AGM on 30 April 2026.
Quick links
Details of each committee's members, Terms of
Referenceand primary role can be found here:
www.persimmonhomes.com/corporate/investors/
corporate-governance/board-committees/
A schedule of Matters Reserved for the Board can be
found here: www.persimmonhomes.com/corporate/
investors/corporate-governance/role-of-the-board-of-
directors/
The Group’s Governance Structure can be found here:
www.persimmonhomes.com/corporate/investors/
corporate-governance/governance-structure/
Persimmon Plc Annual Report 2025 – 85Financial statementsGovernance Other informationStrategic report
Board leadership
BOARD OF DIRECTORS
Roger Devlin
Chairman
Date of appointment: 1 June 2018
Committee membership:
N
CF
Experience and external appointments:
Roger was independent on appointment and
has extensive business, leadership and
governance experience, having held executive
and non-executive roles in a variety of sectors
including corporate finance, gaming, leisure,
pubs and brewing, sport and transport.
Roger is a highly experienced board director,
having previously served as Chairman of
William Hill PLC and Chairman of Marston’s PLC.
Roger is also the Chair of the Horserace Betting
Levy Board, an appointment made by the
Secretary of State for Culture, Media and Sport.
Skills and contribution: Roger’s wealth of
experience gives him a strong understanding
of corporate governance, shareholder and
stakeholder views, banking and finance,
customer propositions and leadership.
Roger’s expertise and personal qualities
enable him to effectively lead the Board
anddrive change within the business. Roger
ensures that the Board functions effectively
byfacilitating open and productive debate,
providing constructive challenge and by
demonstrating objective judgement.
Roger has an MA in Law from theUniversity
of Oxford.
Dean Finch
Group Chief Executive
Date of appointment: 28 September 2020
Committee membership:
S
CF
Experience and external appointments:
Dean is a widely experienced senior executive
with a strong commercial, financial and
operational track record spanning a 40-year
career in Europe and North America.
Prior to joining Persimmon, Dean was the
Chief Executive Officer of National Express
Group plc. Other previous appointments
include Group Chief Executive of Tube Lines,
and Group Finance Director and Group Chief
Operating Officer at FirstGroup plc.
In addition to his executive responsibilities,
Dean is a Non-Executive Director of the
Home Builders Federation (’HBF’) and a
Non-Executive Director of Diploma Plc.
Skills and contribution: Dean is a seasoned,
well-respected and proven Chief Executive with
an exceptional record and extensive housebuilding
experience. He has led the Group’s programme
of transformative change in its drive to be Britain’s
leading homebuilder; delivering substantial
strategic and operational improvements, while
driving the development and implementation of
the Group’s strategy and culture, with a focus
on build quality, customer care, stakeholder
value and strong long-term returns for investors.
Dean is also a qualified chartered accountant.
Annemarie Durbin
Senior Independent Director
Date of appointment: 1 July 2020
Committee membership:
N
R
Experience and external appointments:
Annemarie is the Chair of Yorkshire Building
Society and has over 35 years’ broad-based
retail, commercial, corporate and institutional
banking experience gained across the UK,
Asia, Africa and the Middle East.
Annemarie spent the bulk of her executive
career at Standard Chartered, where she
held a variety of global business and functional
roles including being CEO of a FTSE 250
equivalent listed company in Thailand,
culminating in membership of the Group
Executive Committee.
Annemarie has previously held a variety of
non-executive positions including Remuneration
Committee Chair of Petershill Partners plc,
Senior Ringfence Director and Remuneration
Committee Chair of Santander UK plc, Chair
of Cater Allen Limited, Remuneration Committee
Chair of WH Smith PLC, and Chair of Merryck
& Co. Ltd.
Skills and contribution: Annemarie is a highly
experienced international business executive,
with a strong background in financial services,
diversity & inclusion, transformation, corporate
governance andhuman resources. Annemarie’s
broad experience, combined with her strong
understanding of shareholder and stakeholder
views, enables Annemarie to provide both
constructive challenge and sound advice
tothe Board.
Annemarie is a qualified lawyer,
coachandconflict mediator.
Andrew Duxbury
Chief Financial Officer
Date of appointment: 17 June 2024
Committee membership: N/A
Experience and external appointments:
Andrew brings significant and relevant
industry experience to the Board, having
previously served as Group Finance Director
at Galliford Try Holdings plc. During his
career at Galliford Try, Andrew held various
finance roles for over ten years, including
roles in Galliford Try’s former housebuilding
operation, Linden Homes. Prior to that,
Andrew spent 16 years at PwC, leading
aportfolio of significant clients across a
range of sectors including construction
andhousebuilding.
Skills and contribution: Andrew has extensive
financial, operational, risk management and
commercial skills, and a wealth of construction
and housebuilding industry experience. Working
closely with the Group Chief Executive, Andrew
drives the development and implementation
of the Group’s strategy and culture. Andrew
has a strong focus on financial discipline,
tosupport delivery of our growth strategy.
Andrew’s experience is a valuable asset to
the Group as we continue to provide good
quality homes for families across the UK and
position the business for future growth while
delivering sustainable value to our
stakeholders and shareholders.
Andrew is a Fellow of the Institute
ofChartered Accountants.
The Board of Directors
setsthe Group’s purpose,
defines the Group’s values,
sets the strategy and
monitors and assesses the
Group’s culture. The Board
consists of the Chairman;
two Executive Directors;
andsix Independent
Non-Executive Directors,
including the Senior
Independent Director.
Committee Key
AR
Audit & Risk Committee
N
Nomination Committee
R
Remuneration Committee
S
Sustainability Committee
CF
Trustee of the Persimmon Charitable Foundation
W
Designated Workforce Non-Executive Director
Committee Chair
Financial statementsGovernance Other informationStrategic report86 – Persimmon Plc Annual Report 2025
Andrew Wyllie CBE
Independent Non-Executive Director
Date of appointment: 4 January 2021
Committee membership:
AR
N
Experience and external appointments:
Andrew is an experienced construction sector
executive and was Chief Executive of Costain
Group PLC for 14 years. Previously, Andrew
was Managing Director of Taylor Woodrow
Construction and a member of the Group
Executive Committee at Taylor Woodrow Plc.
During his career, Andrew has worked on a
variety of major contracts and projects in
Saudi Arabia, Ghana, the Falklands,
Malaysia and the UK.
Andrew is currently a Non-Executive Director
of Arup Group Limited, the Senior Independent
Director of Yorkshire Water and Remuneration
Committee Chair of the Institution of Civil
Engineers. Andrew was previously a Non-Executive
Director of BMT Group Limited and Scottish
Water, and President of the Institution of
CivilEngineers.
Skills and contribution: Andrew has a long
and successful track record within the construction
industry and brings highly relevant sector
experience to the Board. Andrew’s industry
knowledge, expertise and perspective are
valuable to the Board as the Group continues
to build a sustainable business, delivering
valueto our stakeholders and shareholders.
Andrew has an MBA from London Business
School and is a Fellow of the Royal Academy
ofEngineering.
Andrew was made a CBE for his services
toengineering and construction.
Alexandra Depledge MBE
Independent Non-Executive Director
Date of appointment: 1 May 2023
Committee membership:
N
R
Experience and external appointments:
Alex is a technology entrepreneur and
founder of Resi.co.uk, the UK’s largest
residential architectural practice and a
leading property technology business. Prior
to establishing Resi.co.uk, Alex co-founded
Hassle.com, Europe’s largest domestic
cleaning online marketplace.
In June 2025 Alex was appointed as the
firstever Entrepreneurship Advisor to the
Chancellor of the Exchequer, to advise on
thegovernment’s entrepreneurship landscape
and focus on addressing the key barriers
faced by businesses seeking to start up and
scale up in the UK.
Additionally, Alex previously sat on the board
of the London Economic Action Partnership,
alocal enterprise partnership chaired by the
Mayor of London.
Skills and contribution: Alex’s appointment
adds highly relevant skills to the Board, with
her valuable property-related technology
andinnovation experience. Alex’s impressive
entrepreneurial track record of building and
scaling consumer-facing technology businesses
adds further depth to the Board’s capabilities.
Alex was made an MBE for her services
tothesharing economy.
Colette O’Shea
Independent Non-Executive Director
Date of appointment: 1 May 2023
Committee membership:
AR
N
W
Experience and external appointments:
Colette is the Chief Operating Officer of
theWellcome Genome Campus, part of
Wellcome Trust.
Colette has a wealth of property market
investment and development expertise gained
during her 20-year career with one of the
UK’s leading real estate businesses, Land
Securities Group PLC (‘LandSec’). Colette
spent the majority of her executive career
with LandSec, culminating in her appointment
as Chief Operating Officer. Prior to this,
Colette held a number of senior executive
positions at LandSec, including Managing
Director, London & Retail; and Head of
Development. Colette has also previously
served as a Non-Executive Director of a
leading housing association.
Skills and contribution: With extensive
industry experience, and a particular expertise
in planning, Colette makes a valuable contribution
to the Board. As well as a respected leader,
Colette brings a wealth of development and
investment knowledge, which assists the
Group with the sector-related challenges
thatit faces.
Paula Bell
Independent Non-Executive Director
Date of appointment: 1 September 2024
Committee membership:
AR
N
Experience and external appointments:
Paula has extensive FTSE 100 & 250 board
experience, having served both as an executive
and non-executive director of large global
organisations. Paula also has wide sector
experience, including construction, property
and manufacturing environments.
Paula was the Chief Operating and Financial
Officer of Spirent Communications Plc from
2016 until October 2025. During her executive
career Paula also served as the Chief Financial
Officer at John Menzies Plc and the Chief
Financial Officer at Ricardo Plc. Paula also
previously held senior leadership roles at
BAA Plc, AWG Plc and Rolls Royce Group Plc.
Paula is currently a Non-Executive Director
and Chair of the Audit and Risk Committee
atKeller Group Plc, and was previously a
Non-Executive Director, Chair of the Audit
Committee and Senior Independent Director
at Laird Plc.
Skills and contribution: Paula is a highly
experienced executive and non-executive
director, with a track record of delivery of both
strategic and operational agendas for large
and complex global businesses. Paula’s
extensive professional experience in business
strategy, operations, change management and
M&A, combined with her significant Audit &
Risk Committee Chair experience, make Paula
an excellent member of the Board.
Paula is a Fellow of the Chartered Institute of
Management Accountants and a Chartered
Global Management Accountant.
Anand Aithal
Independent Non-Executive Director
Date of appointment: 1 January 2025
Committee membership:
N
R
Experience and external appointments:
Anand has extensive board experience and is
currently a Non-Executive Director at Saga
Plc and Polar Capital Holdings Plc. Anand
also serves on a not-for-profit board at the
Institute for Government.
Previously, Anand served on the boards of the
Association of Chartered Certified Accountants
and Nationwide Building Society, and was
the lead Non-Executive for the Cabinet Office.
Anand has over 30 years’ experience in
financial, business and professional services
and co-founded Amba Research, a data
analytics and financial research business.
Anand has also previously been a managing
director at Goldman Sachs.
Skills and contribution: Anand brings a
wealth of financial and business experience
to the Board, having been an executive,
non-executive and entrepreneur in a number
of sectors.
Anand’s international career has seen him
work in Singapore, Hong Kong, India, the
United States, Sri Lanka, and Costa Rica,
providing him with a broad business perspective.
This global exposure, combined with his
multifaceted experience, makes Anand
animportant addition to the Board.
Anand has an MA in Economics from
theUniversity of Cambridge.
Persimmon Plc Annual Report 2025 – 87Financial statementsGovernance Other informationStrategic report
Corporate governance statement
BOARD ACTIVITIES
Standing items at all scheduled Board meetings:
Each Board meeting includes a number of standing items:
·
Group Chief Executive’s Report and Business Update
Provides a comprehensive update on the Group’s performance
and the market; matters of strategic importance and material
regulatory changes. This is supplemented by the Business
Update, which usually includes an in-person update from
either the UK Managing Director, Deputy UK Managing
Director or a Regional Chair, and provides an in-depth
focuson specific areas of the Group’s performance and
theimplementation of the Group’s strategy:
·
Customer Experience
·
Building & Fire Safety
·
Construction
·
Land & planning
·
People & Culture
·
Health, Safety & Environment
·
Information Technology
·
Sustainability
·
Chief Financial Officer’s Report
Provides a comprehensive update on the Group’s financial
performance and financial forecasts. An Investor Relations
update is also included.
·
Committee Chairs’ updates
Updates are provided to the Board on the activities of the
Audit & Risk, Nomination and Remuneration committees.
TheDesignated Workforce Non-Executive Director and
Boardmembers also provide updates to the Board regarding
their attendance at Employee Engagement Panel meetings.
Periodic standing items:
In addition to the standing items at each scheduled meeting,
theBoard’s calendar includes a number of periodic standing items:
·
Annual items:
·
Full-Year Results
·
Half-Year Results
·
Budget
·
Annual Strategy Day
·
Annual General Meeting
·
Internal Controls review
·
Whistleblowing Provision review
·
Annual Board Performance Review
·
Bi-annual presentations:
·
Building & Fire Safety
·
Sustainability
·
Strategic land
During the year the Board held six scheduled meetings
and its Strategy Day meeting, plus additional meetings
when required. Meeting agendas are planned in
advance by the Chairman, supported by the Company
Secretary, and in consultation with the Group Chief
Executive. This ensures that meetings are effective,
efficient and flexible, with appropriate time and focus
devoted to the Group’s performance, strategy,
stakeholders, culture and external environment.
The standing items for Board meetings are displayed on this page and examples ofthe
Board’s work during the year can be found on pages 88 to 90
To further enhance Board effectiveness, Board meetings are sometimes preceded
byBoard dinners. This helps to foster good, constructive and professional relations
between Board members and the Group’s senior executives (plus additional invited
employees and guests). Such dinners also enable the Board to receive additional
presentations and engage in discussion on matters such as the Group’s performance
and culture, and the implementation of the Group’s strategy.
Board meeting attendance 2025
Scheduled meetings
attended
Percentage of scheduled
meetings attended
Roger Devlin 7/7 100%
Dean Finch 7/7 100%
Andrew Duxbury 7/7 100%
Annemarie Durbin 7/7 100%
Andrew Wyllie 7/7 100%
Alexandra Depledge 7/7 100%
Colette O’Shea 7/7 100%
Paula Bell 7/7 100%
Anand Aithal 7/7 100%
Nigel Mills* 2/3 66.6%
* Retired on 1 May 2025.
Financial statementsGovernance Other informationStrategic report88 – Persimmon Plc Annual Report 2025
Examples of the Board’s work during the year, including both standing and ad hoc items, can be found in the table below:
Area of focus Outcome Link to our strategic framework
Strategy Annual Strategy Day – Members of the Executive team delivered a comprehensive suite of presentations to the Board
regarding the Group’s strategy. Topics covered included: the Group’s 5-year plan for growth; the political, fiscal and
macroeconomic environment; brand development and diversification; customer experience; land and planning; innovation
(Space4, the Mauer facade product and vertical integration); artificial intelligence; people and culture; financial projections
and investor perspectives. The high-quality presentations facilitated Board debate, questions and oversight.
The Group’s strategy was reviewed and approved
bythe Board.
1
2
3
4
5
P
Mergers & Acquisitions (’M&A’) – reports received regarding M&A activity in the housebuilding sector. Noted by the Board.
4
FibreNest – presentation received from the Group Strategy & Regulatory Director and FibreNest Managing Director
regarding the proposed sale of the Group’s broadband provider business. Further updates were provided during the year
bythe Group Chief Executive.
The sale of FibreNest to BUUK Infrastructure in
August 2025 was agreed by the Board.
2
4
P
Operations Building & Fire Safety – presentations and updates were received throughout the year regarding the Group’s continued
building and fire safety remediation activities.
Considered and discussed by the Board, noting the
paramount importance of safety, the progress made
to date and the importance of completing
remediation works as soon as reasonably practicable.
1
Cyber Security – presentation received from the Chief Information Officer regarding the cyber security threat landscape,
theGroup’s cyber security defences and the Group’s response following high-profile cyber attacks on other organisations.
Considered and discussed by the Board.
4
Artificial Intelligence (’AI’) – presentation received during the Board’s Strategy Day on how the Group is harnessing the
benefits of AI in a responsible and ethical way.
Considered and discussed by the Board, noting the
power and potential of AI, and the importance of
controls and guardrails.
P
UK Managing Director, Deputy UK Managing Director and Regional Chair presentations – a number of presentations were
received during the year, providing detailed insight into regional operations and matters including market conditions, build
quality, customer care, health & safety, the planning system, the land market, talent and diversity, and the embedding of the
Board’s desired culture. A presentation was also received regarding Charles Church brand development and Space4 innovation.
Presentations were considered and discussed,
enabling the Board to exercise oversight of the
Group’s operations, performance, strategy
implementation and culture.
1
2
3
4
5
P
Strategic Land – presentation received from the Group Strategic Land Director setting out the Group’s approach to strategic
land, including opportunities, challenges and case studies.
Considered and discussed by the Board.
3
Sustainability – presentations received from the Group Sustainability Director regarding the implementation of the Group’s
sustainability strategy. Topics covered included: the Future Homes Standard, carbon reduction, Biodiversity Net Gain,
innovation, and the integration of sustainability into the Group’s operations.
Considered and discussed by the Board.
5
B
T
S
Health, Safety & Environment (’HS&E’) – updates regarding HS&E incidents, including the Group’s response, were covered
in the Group Chief Executive’s Report.
Considered and discussed by the Board, noting the
Group’s increased and significant focus on health
&safety culture, including the Group’s Target
Zerocampaign.
1
S
P
Finance Budget – expected performance and resource allocation for 2025. Considered and approved by the Board.
4
Results – Final Results for 2024, Annual Report 2024, Half-Year Results for 2025 and Trading Updates. Regular review of
forecast results.
Considered and approved by the Board.
1
2
3
4
5
Capital Allocation Policy – consideration of whether to pay a final dividend for 2024 and an interim dividend for 2025. Final dividend of 40p per share for 2024:
recommended to shareholders by the Board.
Interim dividend of 20p per share for 2025:
approved by the Board.
4
Persimmon Plc Annual Report 2025 – 89Financial statementsGovernance Other informationStrategic report
Corporate governance statement continued
Area of focus Outcome Link to our strategic framework
Governance
Competition and Markets Authority (’CMA’) – updates were received regarding the CMA’s investigation into seven
housebuilders (including the Group).
Persimmon worked constructively with the CMA
throughout its enquiry. Alongside the other housebuilders
under investigation, the Group voluntarily offered
commitments in response to the potential concerns
investigated by the CMA. Persimmon’s decision to
offer voluntary commitments does not constitute an
admission of any wrongdoing nor does it imply that
Persimmon agrees with the concerns expressed by
the CMA in the investigation.
The commitments include an ex-gratia financial
contribution from all seven housebuilders to the
government’s Affordable Homes Programme totalling
£100m. Persimmon’s proportionate contribution is £15.2m.
Annual General Meeting 2025 – Notice of Meeting. Approved by the Board.
Internal Controls – Annual Review of the Effectiveness of Internal Controls. Following consideration, the Board agreed that
therisk management and internal control systems
remained effective.
Economic Crime and Corporate Transparency Act 2023 (’ECCTA’) – update received regarding ECCTA
(includingtheFailure to Prevent Fraud offence) and the Group’s compliance response.
Considered and discussed by the Board.
Employee Engagement – updates received from Colette O’Shea, Designated Workforce Non-Executive Director,
followingher attendance at Employee Engagement Panel meetings.
Considered and discussed by the Board.
P
Annual Performance Review – report received regarding the findings of the Board’s internally facilitated annual
performancereview.
Considered and discussed by the Board. Actions
toenhance Board performance agreed.
Whistleblowing Provision – reviewed and approved by Board. Following consideration, the Board agreed that the
Group’s whistleblowing provision remained effective.
P
BOARD ACTIVITIES CONTINUED
Our Key Priorities are:
1
Build quality and safety
2
Customers at the heart of our business
3
Disciplined growth: high-quality land investment
4
Industry-leading financial performance
5
Supporting sustainable communities
Our Sustainability Pillars are:
B
Building for tomorrow
T
Transforming communities
S
Safe and inclusive
Good governance
P
People
Financial statementsGovernance Other informationStrategic report90 – Persimmon Plc Annual Report 2025
CULTURE
The Group’s Mission is to build
homes with quality our customers
can rely on, at a price they can
afford. This is supplemented by
theGroup’s Vision and Values.
A key responsibility of the Board is to ensure that the
Group’s culture is aligned with the Group’s Mission,
Vision and Values. To effectively discharge this
responsibility, the Board uses a variety of methods
andmetrics to monitor and assess the Group’s culture.
The standing items at Board meetings, site visits and
the Board’s engagement with employees and wider
stakeholders enables the Board to effectively monitor
the Group’s culture.
The Group’s intranet, Persimmon Way App and
Internal Communications team enable the Board’s
desired culture to be further embedded across the
Group, driving the reinforcement of our Mission,
VisionandValues.
Customer focused
Value driven
Teamwork
Social impact
Excellence always
O
U
R
V
A
L
U
E
S
Persimmon Plc Annual Report 2025 – 91Financial statementsGovernance Other informationStrategic report
Employees
34.4%
Female employees in our senior
managementteam
70%
Employee engagement score
(7% ahead of external benchmark)
79%
Of employees would recommend Persimmon
asa great place to work (8% ahead of
externalbenchmark)
4
Active employee networks (Women, Persimmon
Pride, Religion & Culture and Carers)
299
Mental Health First Aiders
526
Apprentices and trainees within the business
c.15,900
Training days delivered
Customers and Quality
93.5%
Customer satisfaction score
Based on the percentage of customers that
would recommend Persimmon to a friend*
91.4%
Build quality score
Based on customer satisfaction with build
quality*
92.6%
NHBC Construction Quality Review score
4.6
Persimmon Homes Trustpilot score
4.6
Charles Church Trustpilot score
* The Group participates in the National New Homes
Survey, run by the Home Builders Federation.
Health, Safety
andEnvironment
Net Zero
We aim to achieve zero carbon ready
homesinuse by 2030, and have developed
ourdecarbonisation pathway to 2045.
Persimmon Excellence Always Awards
(including Health, Safety and Environment
awards) continued, with winners being
announced to the business.
98%
Operational waste recycled
Target Zero
Award winning workplace health
&safetycampaign
Community
c.£1.1m
Donated to charities and local community
groups across the UK
c.96,000
Construction and supply chain jobs supported
Employee Engagement Panel
The Panel, which comprises 17 employees, provides
abroad representative body of the Group’s employees,
and provides an important forum for employees to
express their views and provide feedback on the Group,
its performance, policies, procedures and culture.
The Panel is chaired by the Chief HR Officer and there
are usually four meetings per year. Colette O’Shea,
the Designated Workforce Non-Executive Director,
attends at least two meetings per year, other Board
members frequently attend. The Panel’s open and
honest feedback is highly valued by the Board,
providing an excellent opportunity for the Board
tomonitor the practical application of the Group’s
values, and therefore, the Group’s culture.
Board attendees at Panel meetings during 2025:
·
Roger Devlin, Chairman;
·
Colette O’Shea, Designated Workforce
Non-Executive Director; and
·
Annemarie Durbin, Senior Independent Director
and Chair of the Remuneration Committee.
Employee Engagement Survey
The results of the Employee Engagement Survey are
presented to the Board annually. The Survey conducted
during the year showed that the Group’s employees
are engaged, would recommend Persimmon as a great
place to work, and are proud to work here. For further
details regarding the survey results, see page 25.
Corporate governance statement continued
CULTURE CONTINUED
I've been pleased with the range of development
opportunities available. There's a strong culture of
continuous learning, and I feel encouraged to take
ownership of my personal growth. Whether through
on-the-job learning, access to training resources
orsupport for external courses, I've had the chance
to expand my skills in a meaningful way.
Employee Engagement Survey
Financial statementsGovernance Other informationStrategic report92 – Persimmon Plc Annual Report 2025
The Board leads and directs the Group. It sets the
Group’s purpose, defines the Group’s values, sets the
strategy and monitors and assesses the Group’s culture,
with the aim of securing the long-term sustainable
success of the business and generating value for
allofour stakeholders.
In addition to the Board and its committees, the Group’s executive-level committees
play a key role in the governance of the Group:
·
Disclosure Committee – chaired by the Chief Financial Officer, the committee
reviews compliance with regulations concerning the release of information to the
financial markets. The Committee considers, in conjunction with the Group’s advisors,
the Group’s market announcements before they are presented to the Board.
·
Executive Committee – chaired by the Group Chief Executive, the committee is
a key forum where the Group’s operations, performance, strategy implementation
and culture are reported, considered and assessed.
·
Health, Safety & Environment Committee – the committee is responsible for
reviewing the Group’s ongoing health, safety & environmental performance; and
the development, implementation and monitoring of the Group’s health, safety
and environment strategy. Chaired by the Group Chief Executive, committee
members include the Chief Financial Officer, Health, Safety & Environment
Director, Regional Chairs and the Group Construction Director.
·
Land Committee – the committee is responsible for assessing and approving
allland acquisitions and disposals, within defined authority limits. Chaired by the
Group Chief Executive, committee members include the Chief Financial Officer,
the UK Managing Director, the Group Strategy & Regulatory Director, Regional
Chairs and the Group Director of Land Operations.
·
Management Risk Committee – the committee supports the Audit & Risk
Committee in the development and oversight of the Group’s risk management
framework, reviews risk indicators and reviews the operational effectiveness
ofcontrol activities. Chaired by the Chief Financial Officer, committee members
include the Director of Internal Audit, the Chief Information Officer and the
GroupSales Director.
·
Sustainability Committee – chaired by the Group Chief Executive, the committee
is responsible for developing and overseeing the implementation of the Group’s
sustainability strategy, policies and objectives. For further information, see page 94.
GOVERNANCE STRUCTURE
Persimmon Plc Annual Report 2025 – 93Financial statementsGovernance Other informationStrategic report
UK Managing Director and Regional Chairs Leaders of Group Functions
Nomination
Committee
Remuneration
Committee
Audit & Risk
Committee
Executive-level committees:
Operating Businesses
Disclosure
Committee
Executive
Committee
Health, Safety
&Environment
Committee
Land
Committee
Management Risk
Committee
Sustainability
Committee
Board of Directors
Stakeholder engagement
To successfully implement and deliver the Group’s
keypriorities, the Group engages extensively with its
stakeholders. In doing so, the Group is able to strengthen
existing business relationships and nurture new ones
todeliver value for all stakeholders and ensure
business sustainability.
The Board receives regular updates on stakeholder
engagement including from the Group Chief Executive,
Chief Financial Officer, the Group Director of Strategic
Partnerships & External Affairs, the Investor Relations
Director, the Chief Customer Experience Officer, the
Group Construction Director and the Group Health,
Safety & Environment Director. The Group’s engagement
with its stakeholders, and the outcomes and effects this
has on the Board’s decisions, is described in detail in
the Section 172 Statement on pages 51 to 58.
The Sustainability Committee
The Sustainability Committee is responsible for developing
and overseeing the implementation of the Group’s
sustainability strategy, policies and objectives. Reporting
directly to the Board, the Sustainability Committee is
chaired by the Group Chief Executive and members
include the Group Sustainability Director, the Group
Strategy and Regulatory Director, the Company
Secretary, the Chief Customer Experience Officer,
theGroup Construction Director and the Deputy UK
Managing Director. The Board receives updates on
sustainability issues and performance at each of its
meetings via the GroupChief Executive’s Report and
Business Update,and bi-annual presentations from
theGroupSustainability Director.
The Sustainability Committee held three meetings
during the year; topics covered included the sustainability
strategy review and implementation plan, business
readiness planning for the Future Homes Standard
(’FHS’), sustainability performance tracking, carbon
reduction progress, climate risk and TCFD reporting,
ecology and Biodiversity Net Gain updates, PSP
award environmental metric updates, the Group’s
framework for the prevention of modern slavery and
the Group’s Modern Slavery Statement, and policy
reviews and updates.
The Sustainability Committee also supports the Board’s
oversight of climate change matters and oversees the
implementation of the Group’s climate change strategy.
The Sustainability Committee ensures climate issues
are being effectively considered and managed and
reports its findings and recommendations to the Board.
During 2025 a detailed transition risk analysis was
undertaken to financially quantify the key material
transition risks facing the Group.
Further information can be found in the Climate-Related
Financial Disclosures (‘TCFD’) on pages 59 to 69
Corporate governance statement continued
GOVERNANCE STRUCTURE CONTINUED
Workforce engagement
Workforce engagement is of great importance to the Board. This engagement is facilitated by a variety of means,
including the appointment of Colette O’Shea as the Designated Workforce Independent Non-Executive Director,
the Group’s Employee Engagement Panel and Group-wide webinars featuring the Non-Executive Directors.
Asexplained on page 92, the Panel holds four meetings per year, which Board members frequently attend.
Examples of matters raised by the Panel during the year include:
Recognition of employee long/loyal service
Issue Noting the important contribution that long serving employees make to the success of the Group,
Panel members reported that employees would appreciate a more consistent, Group-wide,
approach to recognising employee long/loyal service.
Initial actions The Group Human Resources department was tasked with designing, in consultation with the
Group’s senior management, a formal Loyal Service Policy.
Update The Group’s Loyal Service Policy was approved by the Executive Committee and launched across
the Group during 2025. The Policy formalises the Group’s approach to recognising loyal service,
with financial awards made at service milestones starting at 10 years, up to 50 years. The Policy
enhances employee experience and provides a consistent Group-wide approach to loyal service
recognition which compliments the Group’s existing practices.
Technical drawings
Issue Panel members suggested that it would be beneficial for additional detail to be included in
technical drawings and raised questions regarding the use of technical drawings on site.
Initial actions The Chief Human Resources Officer arranged for the Group Technical Director and Group Director
of Architectural Design to attend the Panel’s subsequent meeting.
Update A comprehensive presentation was delivered to the Panel, followed by Q&A. This enabled Panel
members to enhance their understanding of the Group’s approach to technical drawings and
provided an opportunity to showcase the Group’s newer, detailed, 3D working drawings;
andrelated IT solutions.
Financial statementsGovernance Other informationStrategic report94 – Persimmon Plc Annual Report 2025
2026 Annual General Meeting
The Annual General Meeting (’AGM’) is an important
opportunity for the Board to engage with shareholders.
The 2026 AGM will be held at 11.00am on 30 April
2026, at York Racecourse, Knavesmire Road, York,
YO23 1EX. Shareholders are encouraged to attend.
Voting will be on a poll whereby every member shall
have one vote for every ordinary share held. The
Notice of Meeting and AGM circular, which includes
an explanation of the ordinary and special resolutions
to be voted on, will be sent to shareholders on 23
March 2026 and will be available on the Company’s
website at www.persimmonhomes.com/corporate/
investors/shareholder-centre/annual-general-meetings/.
Workforce policies and practices
Whistleblowing Policy
The Board is responsible for ensuring that an effective
Whistleblowing Policy is in place and that individuals
both inside and outside the Group can confidentially
raise any concerns they may have. The whistleblowing
provision, which encompasses the Whistleblowing
Policy and associated processes, includes assurances
to those reporting potential wrongdoing, that reporting
a genuinely held concern will not lead to individuals
suffering any form of detriment. This encourages
andreassures individuals that it is safe to speak up,
and therefore helps to promote a culture of
opennessand trust.
The Whistleblowing Policy is reviewed by the Audit &
Risk Committee and the Board at least annually. The
operation of the whistleblowing provision is managed
by the Group Internal Audit department, which reviews
and, where necessary, investigates all whistleblowing
reports received. The Group Internal Audit department
works with the Chief HR Officer and other senior
managers as appropriate to ensure that investigations
are rigorous and conducted with the necessary
sensitivity. Learnings from investigations are
thentakenand acted upon as required.
Details of all whistleblowing reports and
investigationsare reviewed by the Audit & Risk
Committee. The Chair of the Audit & Risk Committee is
the Group’s Whistleblowing Champion, acting as an
independent sponsor for the whistleblowing provision.
The Group’s continued partnership with Protect, the
whistleblowing charity, has provided access to
benchmarking and good practice guidelines.
The Board remains satisfied that the Whistleblowing
Policy and the supporting processes and arrangements
of the whistleblowing provision remain appropriate
and effective.
Further information on the whistleblowing provision can be
found on page 114
Remuneration Policy
The Remuneration Policy is voted on by shareholders
at least triennially; the current policy was last approved
by shareholders at the AGM on 26 April 2023, with
98.7% of votes being cast in favour. When setting the
Remuneration Policy, the Remuneration Committee
aims to: ensure appropriate alignment with the Group’s
strategy, values and key priorities; align the interests
ofthe Executive Directors, senior management and
employees with those of shareholders and wider
stakeholders; and ensure that remuneration and
incentives adhere to the principles of good corporate
governance, support good risk management practice
and promote long-term sustainable Company
performance; and to have a competitive mix of fixed
remuneration and short-term and long-term incentives,
with stretching targets linked to the Company’s
financial and non-financial performance.
Prior to the shareholder vote at the 2023 AGM, the
Chair of the Remuneration Committee consulted with
the Company’s major shareholders (representing
51.7% of the then share register) regarding the then
proposed policy.
The Remuneration Policy will next be put to a shareholder
vote at the AGM to be held on 30 April 2026. In advance
of the 2026 AGM, the Chair of the Remuneration
Committee consulted with the Company’s major
shareholders (representing 52.6% of the then share
register) regarding the proposed policy.
For further information regarding the proposed
remuneration policy that will be voted on by
shareholders at the 2026 AGM, please see the
Remuneration Report, pages 119 and 120, and
pages124 to 130.
Anti-Bribery and Corruption Policy
The Group has a well-established Anti-Bribery and
Corruption Policy, which forms an extension to our
Code of Ethics, setting out our zero-tolerance approach
to any form of bribery and corruption. Through this
policy, the Board aims to reinforce a culture where
bribery and corruption are never seen as acceptable
behaviours. This applies to all Group employees,
businesses and operations, and extends to our
relationships with all of our suppliers, sub-contractors
and intermediaries, supporting our reputation for
ethical conduct, and fostering long-term, mutually
beneficial relationships with our supply chain.
The Group maintains a comprehensive suite of
anti-bribery and corruption controls and oversight
arrangements. These include robust and transparent
tendering processes to ensure appropriate decision
making when appointing new suppliers and
subcontractors. Our Policy is made available
toallstakeholders via our corporate website,
withmonitoring processes also in place to promote
awareness of potential bribery and corruption issues,
including training and awareness programmes which
are regularly reviewed and updated by the Group
Head of Training. The Group’s independent whistleblowing
provision supports the Policy to enable prevention,
detection and reporting of bribery and corruption.
TheGroup Internal Audit department, which reports
tothe Board via the Audit & Risk Committee, provides
independent assurance on the effective operation
ofthese controls and activities.
Equality, Diversity and Inclusion Policy
A description of the Group’s Equality, Diversity
andInclusion Policy, its objectives, implementation
and results achieved during the year can be found
onpages 27, 48 and 104 and 105.
Preventing Fraud Policy
As part of the Group’s compliance with the Economic
Crime and Corporate Transparency Act 2023, the
Group has implemented a Preventing Fraud Policy.
TheBoard and the Group do not tolerate fraud in any
form. The Board’s aim is to ensure a culture in which
fraud is not seen as acceptable and that employees,
agents, consultants, customers, suppliers and
sub-contractors understand the importance of
preventing fraud. The Group has fraud prevention
procedures in place and provides fraud prevention
training. To ensure continued effectiveness, the Group
reviews its fraud prevention processes on a routine
basis. The policy is supported by the work of the
Group Internal Audit department, and the Group’s
independent whistleblowing provision.
Division of responsibilities
There is a clear, written division of responsibilities
between the Chairman and the Group Chief Executive,
which was approved by the Board. The responsibilities
of the Senior Independent Director are set out in
aletter of appointment. Terms of reference for
theBoard’s Committees are reviewed annually.
Theyareavailable on the Company’s website
www.persimmonhomes.com/corporate/investors/
corporate-governance/board-committees/ or from
the Company Secretary at the Company’s registered
office. More than half of Board members (excluding
the Chairman) are Independent Non-Executive Directors
and no one individual or group of individuals has the
ability to dominate the Board’sdecision making.
Persimmon Plc Annual Report 2025 – 95Financial statementsGovernance Other informationStrategic report
Corporate governance statement continued
GOVERNANCE STRUCTURE CONTINUED
Workforce policies and practices continued
Division of responsibilities continued
Role Responsibilities
Chairman
Roger Devlin
·
Leading the Board and responsible for its overall effectiveness in directing the Company.
·
Upholding high standards of integrity and probity and supporting the Directors in instilling the
appropriate culture, values and behaviours in the boardroom and throughout the Group’s operations.
·
Setting the agenda for Board meetings and setting the style and tone of all discussions to promote
effective decision making, constructive debate and participation by all Directors.
·
Promoting an effective Board and having a prime role, via the Nomination Committee,
insuccessionplanning.
·
Promoting effective professional relationships and open communication, both inside and outside
theboardroom, between the Non-Executive Directors and the Executive team.
·
Promoting high standards of corporate governance.
·
Constructively challenging the Executive Directors and assisting in the development of strategy proposals.
·
Scrutinising the performance of management in meeting agreed goals and objectives, and monitoring the
reporting of performance.
·
Ensuring that all Directors receive high-quality information sufficiently in advance of Board meetings.
·
Leading the annual board performance review.
The Chairman’s Statement and the Chairman’s Introduction to Corporate Governance can be located
onpages 4 and 5 and pages 83 and 84, respectively
Group Chief
Executive
Dean Finch
·
Leading the Executive team in running the Group’s business.
·
Leading the development of the Group’s strategy and implementing the strategy as agreed by the Board.
·
Working closely with the Chairman to support the effectiveness of the Board.
·
Leading by example and ensuring effective communication of the Board’s agreed strategy and desired
culture to the Group’s management and workforce.
·
Supporting the Chairman to ensure that appropriate standards of governance permeate throughout
theGroup.
·
Communicating the views of senior management to the Board to aid effective decision making.
·
Ensuring that the Board receives accurate high-quality information from management in a timely manner.
·
Listening to the constructive challenge of the Non-Executive Directors, and encouraging Non-Executive
Directors to test proposals in light of their external experience and knowledge.
The Group Chief Executive’s statement can be located on pages 13 to 15
Chief
Financial
Officer
Andrew
Duxbury
·
Supporting the Group Chief Executive in developing and implementing strategy and alignment
tofinancial objectives.
·
Leading the Group’s relationship with banks and shareholders.
·
Stewardship of the Group’s financial resources and risk management.
·
Ensuring that financial information and financial controls and systems of risk management are robust,
andreporting this to the Board.
The Financial Review can be located on pages 22 to 24
Role Responsibilities
Senior
Independent
Director
Annemarie
Durbin (from
1May 2025)
1
Nigel Mills
(until 1 May
2025)
·
In addition to her role as a Non-Executive Director, acting as a sounding board for the Chairman
andanintermediary for other Directors.
·
Leading the annual performance review of the Chairman.
·
Being available to shareholders for them to raise any concerns they may have outside of the usual
channels of communication.
Non-
Executive
Directors
(’NEDs’)
Andrew Wyllie
Alexandra
Depledge
Paula Bell
Anand Aithal
2
·
Supporting and constructively challenging the Executive Directors in developing, determining and
implementing the Group’s strategy.
·
Bringing independent judgement and scrutiny to decisions recommended by the Executive Directors
andmonitoring the reporting of performance.
·
Contributing a broad range of views, skills and experience.
·
Devoting time to developing and refreshing knowledge and skills.
·
Monitoring delivery of the agreed strategy within the risk and control framework set by the Board.
·
Reviewing the integrity of financial information and satisfying themselves that risk management systems
are robust.
Designated
Workforce
NED
Colette O’Shea
·
In addition to her role as a Non-Executive Director, attending meetings of the Employee Engagement
Panel and facilitating effective two-way communication, meaningful dialogue and engagement between
the Board and the Group’s workforce.
·
Acting as a direct link between the Employee Engagement Panel and the Board.
Company
Secretary
Tracy Davison
·
Advising the Board and supporting the Chairman on corporate governance matters.
·
Ensuring a good flow of information to the Board, its Committees and senior management.
·
Promoting compliance with statutory and regulatory requirements and Board procedures,
andensuringthat regular updates are provided to the Board when necessary.
·
Working with the Chairman to organise and deliver the Board’s annual performance review.
·
Providing guidance and support to Directors, individually and collectively.
·
Ensuring that all new Directors receive thorough inductions that are adapted to meet their needs
andrequirements.
1. Appointed as the Senior Independent Director on 1 May 2025, following Nigel Mill’s retirement from the Board.
2. Appointed on 1 January 2025.
Financial statementsGovernance Other informationStrategic report96 – Persimmon Plc Annual Report 2025
Matters Reserved for the Board
The Board has a formal schedule of matters reserved for its consideration and
decision, which is reviewed annually. The schedule includes:
·
Setting the Group’s purpose, values and standards;
·
Approving the Group’s strategy;
·
Changes to the Group’s structure and capital;
·
Approving the annual report and accounts, and half-year results and trading updates;
·
Approving the Capital Allocation Policy, recommending final dividend payments
and agreeing interim dividend payments;
·
Ensuring a sound system of internal control and risk management, as
recommended by the Audit & Risk Committee, including reviewing the
effectiveness of the Group’s risk and control processes;
·
Approving material capital projects and contracts;
·
Approving resolutions and corresponding documentation to be put forward
toshareholders at general meetings;
·
Approving changes to the membership and composition of the Board,
asrecommended by the Nomination Committee;
·
Delegations of authority;
·
Corporate governance matters including considering the annual performance
review of the Board and its Committees; and
·
The review and approval of various policies.
The Group has a Conflicts of Interest Policy to govern the process of identifying,
recording and managing any potential conflicts of interest of the Group’s senior
management team and wider workforce. To support the aims of the Conflicts of
Interest Policy, the Group Risk & Internal Audit department oversees an annual
process of obtaining declarations from individuals, with detailed reporting on
potential conflicts of interest and mitigation controls, which is reported to the
Audit&Risk Committee on an annual basis. Furthermore, declarations of interest
aremade (if applicable) at every Board and Committee meeting.
Board external appointments
The Directors recognise that external appointments can broaden an individual’s skills
and experience. If an Executive Director wishes to take up an external appointment,
they must first seek approval from the Chairman.
Chairman
On appointment, Roger Devlin, Chairman,
satisfied the criteria for independence
specified in the UK Corporate Governance
Code 2024. The Chairman, supported by
theCompany Secretary, sets the agenda
forBoard meetings and ensures that Board
members are provided with accurate, timely
and clear information. The Chairman ensures
that Board meetings are a forum for open and
constructive debate and that the views of all
Directors are valued and considered.
Non-Executive Directors
The Non-Executive Directors have expertise which complements that of
theExecutive Directors. Between them, the Non-Executive Directors have
experience in fields such as construction and engineering, property, HR,
executive leadership coaching, technology, banking and finance. The collective
experience of the Non-Executive Directors allows them to make valuable
contributions to Board discussions, providing insight, strategic guidance,
adiversity of views and constructive challenge to the Executive Directors.
For further information on the skills and contribution of each Director see pages
86and 87
Only Non-Executive Directors are members of the Board’s Audit & Risk,
Remuneration and Nomination Committees. The Chairman regularly holds
meetings with the Non-Executive Directors without the Executive Directors
being present.
All Directors are required to allocate sufficient time to the Group to
discharge their duties. Prior to the appointment process the Nomination
Committee considers the other demands on a potential Director’s time and
provides the Director with an assessment of the time commitment required
oftheir role on the Company’s Board.
The Board considers all the Non-Executive Directors to be independent.
Senior Independent Director
Annemarie Durbin was appointed as the
Senior Independent Director with effect from
1 May 2025, following Nigel Mills’
retirement from the Board at the Annual
General Meeting held on the same date.
Company Secretary
The Board is supported by the Company
Secretary to ensure the necessary policies,
processes, information and resources are in
place in order that the Board can function
effectively and efficiently. All Directors have
access to the advice of the Company Secretary
and may seek external professional advice at
the expense of the Company in regard to their
role with the Group.
Board composition
Persimmon Plc Annual Report 2025 – 97Financial statementsGovernance Other informationStrategic report
The Board’s policy is to undertake
an annual review of its performance
and that of its Committees and
Directors, with an externally
facilitated review at least triennially.
During the year the Board undertook a formal, rigorous
internally facilitated performance review, led by the
Chairman and supported by the Company Secretary.
The performance review utilised BoardClic, a digital
board performance review platform, whereby all
Board members completed thorough questionnaires in
respect of their roles on the Company’s Board and the
Board’s Committees. The questionnaires were designed
in the context of the UK Corporate Governance Code
2024 and corporate governance best practice.
In addition to the 2025 Board performance review,
the BoardClic platform was also used for the Board’s
internally facilitated performance reviews in 2022
and2023.
Corporate governance statement continued
EVALUATION: ANNUAL BOARD
PERFORMANCE REVIEW
Process – Annual Board
Performance Review 2025
1. Planning
Due to the thorough, and best practice informed,
questionnaires provided by BoardClic during the
2022 and 2023 internally facilitated Board
performance reviews, and BoardClic’s use of
technology, the Chairman, supported by the
CompanySecretary, agreed to engage BoardClic
forthe 2025 Board performance review.
The Company Secretary reviewed the Board and
Committee questionnaires before they were circulated,
to ensure they were appropriate and referred to all
relevant matters.
2. Execution
The questionnaires were circulated to the Board
andits Committees for completion.
3. Analysis and review
Anonymised questionnaire responses, including
BoardClic’s scoring and benchmarking, were reviewed
by the Company Secretary and shared with the
Chairman and the Chairs of the Board’s Committees.
4. Results
The results of the performance review were shared
with the Board and each Committee Chair for
consideration and discussion. Areas of high
performance were noted, and actions for
enhancement were agreed.
Financial statementsGovernance Other informationStrategic report98 – Persimmon Plc Annual Report 2025
Year 1
External
Year 2
Internal
Year 3
Internal
Board evaluation cycle
Year 2
Internal
Annual Board Performance Review 2025
The 2025 performance review identified a number of areas of strength:
What the Board does well
The Chairman promotes open discussion that leverages the Board's collective knowledge and experience.
The Board’s operating style is constructive and dynamic.
Board materials and management reports are clear, concise and support informed decision making.
The Board challenges management to ensure that investments align with long-term strategic goals.
The performance review also identified areas for potential improvement:
What the Board or its Committees could do better Action
The Board could more
regularlyassess the strategy
implementation process.
The Board holds its Strategy Day in October annually, and receives
strategy updates in April annually.
Following consideration of the most appropriate performance indicators,
the Group Chief Executive’s Report and Business Update was enhanced
to include additional reporting on strategy implementation and
progressachieved.
Delegation of authorities. The Matters Reserved for the Board are reviewed in December annually.
However, the performance evaluation indicated that the Board would
appreciate further consideration of the delegation of authorities to the
executive/management. Consequently, this issue will be given additional
consideration by the Board during 2026.
Enhancing succession plans by
linking them more closely to the
Group’s strategy.
To further support the work of the Nomination Committee, the Chief HR
Officer will give further consideration to how succession plans, and their
linkage to the Group’s strategy, can be enhanced.
In addition, to aid the discussion and consideration of matters such as
diversity & inclusion, the Group Chief Executive will more frequently
attend relevant parts of Nomination Committee meetings.
Performance Review of BoardCommittees
The findings of each Committee’s performance review
were presented to the Board. The Chairman also
discussed the findings with each Committee Chair.
The performance review noted that the Board’s
Committees are performing well and led by effective
Chairs who facilitate high-quality discussion. It was
noted that the Nomination Committee should continue
its focus on succession planning and diversity & inclusion.
Performance Review of individual Directors
Following individual performance reviews, it is
considered that the Chairman and Non-Executive
Directors have individually performed well in their
roles and have shown a high level of independence
and commitment. Their collective experience allows
them to make valuable contributions to Board discussions,
providing insight, strategic guidance, a diversity of
views and constructive challenge to the Executive team.
The Board also considers that the Group Chief Executive
and Chief Financial Officer have performed well in
their roles during the year. Dean Finch continues to
demonstrate strong leadership of the business with
afocus on build quality, customer care, stakeholder
value, sustainability and strong long-term returns to
shareholders. Andrew Duxbury continues to make
asignificant contribution to the business. Andrew
continues to support the execution of the Group’s
strategy and continues to enhance the Group’s finance
function, making it an enabler of business growth.
Performance Review of the Chairman
The Chairman’s performance was formally reviewed
by the Non-Executive Directors, led by Annemarie
Durbin, the Senior Independent Director. Private
discussions were held between the Senior Independent
Director and each of the Non-Executive Directors. The
review concluded that the Chairman is well-qualified
to lead the Board; he is highly experienced, is a strong
advocate for the Group’s culture of consistently delivering
high quality homes, and leads the Board’s focus on
efficiency, innovation and quality. Following the review,
it is considered that the Chairman continues to perform
well in his role and has the support of the Board.
Persimmon Plc Annual Report 2025 – 99Financial statementsGovernance Other informationStrategic report
Year 1
External
Year 3
Internal
Corporate governance statement continued
EVALUATION: ANNUAL BOARD PERFORMANCE REVIEW CONTINUED
Annual Board Performance
Review 2024 – progress made
during 2025
The outcome of the Board Performance Review
conducted in 2024 is set out below, along with the
actions taken during 2025 to strengthen the Board
and its Committees.
What the Board does well
The Board benefits from a highly experienced
Chairman, who engages well with Executives while
ensuring Board members are kept fully informed
aboutchanges in the business.
The Board has committed, knowledgeable
Independent Non-Executive Directors with a wide
range of skills and experience, who engage well
withthe business.
The Board operates with a high degree of openness
and transparency.
The Board’s Committees are led by well-qualified
Chairs, give good coverage to their areas of
responsibility and provide high-quality inputs
totheBoard.
What the Board could do better Action Progress during the year (2025)
Financial information Comprehensive financial information is included in the papers
issued prior to all Board meetings. However, to improve Board
oversight of this area between meetings, financial updates will
be issued to the Board on a monthly basis from the 2025
financial year.
Monthly financial updates were issued to the Board during 2025, providing
oversight of trading and cash performance. Monthly financial updates will
continue to be issued going forward.
Strategy The Board holds a Strategy Day every October, where the
Group’s strategy is debated, reviewed and agreed. To enhance
the Board’s role in strategy development, Strategy Updates will
continue to be included regularly in Board meetings.
The Chief Financial Officer, Group Strategy & Regulatory Director and
UKManaging Director delivered a Strategy Update presentation at the
Board’s meeting in April 2025. In addition, the Board received reports
andpresentations throughout the year on strategically important matters,
including sustainability, strategic land, customer experience and the
development of the Group’s brands.
Culture The Non-Executive Directors conduct site visits, present at
leadership development events and employee conferences;
andattend Employee Engagement Panel meetings. To gain
abetter understanding of the Group’s culture and to further
enhance the visibility of Non-Executive Directors among the
Group’s employees, the Non-Executives are encouraged to
undertake additional site visits.
The Non-Executive Directors undertook a number of site visits during
theyear, visiting sites in the Essex and South East regions.
In addition, the during the year the Board visited two sites in the East
Midlands region and toured the Space4 factory in Birmingham.
Sustainability The Board receives sustainability updates at each of its meetings
via the Group Chief Executive’s Report and Business Update.
However, to reinforce the Board’s oversight of this area, the
Group’s Sustainability Director will attend Board meetings on
atleast a bi-annual basis to report on, and discuss, the work
ofthe Group’s Sustainability Committee.
Bi-annual Sustainability Updates were delivered to the Board by the Group
Sustainability Director during the year.
Financial statementsGovernance Other informationStrategic report100 – Persimmon Plc Annual Report 2025
Year 1
External
Year 2
Internal
Year 3
Internal
COMMITTEE
CHAIR’SSTATEMENT
Succession planning
featured heavily on
theNomination
Committee’s agenda
during the year,
building on the
foundations of the
Group’s already
strongtalent pipeline.
Roger Devlin
Chair of the Nomination Committee
Nomination Committee report
Nomination Committee members
and meeting attendance 2025
Scheduled
meetings
attended
Percentage
of meetings
attended
Roger Devlin (Chair) 3/3 100%
Annemarie Durbin 3/3 100%
Andrew Wyllie 3/3 100%
Alexandra Depledge 3/3 100%
Colette O’Shea 3/3 100%
Paula Bell 3/3 100%
Anand Aithal 3/3 100%
Nigel Mills
1
1/1 100%
1. Retired from the Committee on 1 May 2025.
Role and purpose of the
Nomination Committee
The key duties of the Nomination
Committeeinclude:
·
reviewing the structure, size and
composition of the Board;
·
leading the process for appointments
totheBoard; and
·
ensuring that plans are in place for
orderlysuccession to both the Board
andsenior management.
The role, responsibilities and authority
delegated to the Nomination Committee
areoutlined within the Committee’s terms of
reference. The terms of reference are reviewed
annually to maintain alignment with corporate
governance best practice. The most recent
review of the terms of reference took place in
December 2025, where no updates were made.
Further details of the members, terms of
reference and primary role of the committee can
be found here: www.persimmonhomes.com/
corporate/investors/corporate-governance/
board-committees/
On behalf of the Board, I am
pleased to present the Nomination
Committee’s report for the year
ended 31 December 2025.
Board changes
The Nomination Committee aims to ensure that the
Board and Committees have an appropriate combination
of skills, experience and knowledge, and that appointments
promote diversity, inclusion and equal opportunity.
Anand Aithal was appointed as an Independent
Non-Executive Director and a member of the
Nomination Committee and Remuneration Committee,
on 1 January 2025. Following his appointment,
Anandreceived a full, formal and tailored induction
supported by the Company Secretary. During his first
year, the Board and its Committees have benefited
from his experience across many sectors as a senior
executive, entrepreneur and Non-Executive. Anand’s
appointment was subsequently approved by shareholders
at the 2025 AGM. Details of Anand’s appointment
and induction process were provided in the Nomination
Committee’s report on page 103.
After nine years of service, Nigel Mills stepped down
from the Board and as Senior Independent Director on
1 May 2025. Annemarie Durbin was appointed as the
Senior Independent Director on the same date. Since
her appointment as Senior Independent Director,
Annemarie has acted as a trusted sounding board
tome and to my fellow directors.
Following the changes outlined above, the Nomination
Committee remains satisfied that the Board is well
balanced, with an appropriate blend of skills and
expertise to deliver the Group’s strategy.
Persimmon Plc Annual Report 2025 – 101Financial statementsGovernance Other informationStrategic report
Nomination Committee report continued
Succession planning
andtalentdevelopment
Succession planning featured heavily on the
Nomination Committee’s agenda during the year,
building on the foundations of the Group’s already
strong talent pipeline. Board succession was reviewed
by the Nomination Committee, in line with the UK
Corporate Governance Code 2024.
During the year, the Committee also reviewed
themedium-term succession plans for the executive
and senior leadership team, including the skills and
qualities required for potential successors to the
executive. The Nomination Committee also received
updates on the composition and capabilities of the
senior leadership team and wider workforce,
recognising this as essential to ensuring the Group’s
future leaders possess the requisite experience,
skillsand diversity.
The Board Skills Matrix was considered during the
year and was employed to assess the current competencies,
experience and diversity represented by the Board.
The Nomination Committee considered short, medium
and long-term succession planning. The Chief HR
Officer and Director of Talent and Diversity provided
regular updates on the Group’s progress on talent and
succession, as well as planned activities to develop
high-potential employees, and informed the Board of
how the activities aligned with the Group’s strategy
and Equality, Diversity and Inclusion strategy and targets.
Further information on the Nomination Committee’s
approach to succession planning and talent development
can be found on pages 106 and 107
Equality, diversity and inclusion
The Nomination Committee remained focused
ontheGroup increasing diversity of its employees,
particularly increasing the representation of both
female employees and those from ethnic minority
backgrounds. I am pleased that, the Board is in full
compliance with the gender and ethnicity targets set
inthe Listing Rules, the Parker Review and the FTSE
Women Leaders Review. The Nomination Committee
reviewed the strategies set by the management team
toincrease diversity and inclusion of Group employees.
As part of this, the Nomination Committee monitored
the progress made towards achieving its ethnic diversity
target for the Group’s senior management team, which
included updates on the ethnic composition within the
senior leadership team and in the workforce as a
whole and the plans to increase representation.
The Nomination Committee reviewed the Equality,
Diversity and Inclusion Policy during the year. The
Chief HR Officer and Director of Talent and Diversity
refreshed the Policy, which sets out the Group’s
responsibilities and its approach to increasing
equality, diversity and inclusion within the business.
Board performance
An internally facilitated Board Performance Review
took place during the year, which examined the
Board’s effectiveness. The results of the Board
Performance Review were considered by the Board
and its Committees. It is encouraging that the outcome
of the process was that the Board and its Committees,
including the Nomination Committee, continue to
operate effectively. Consistent with previous Board
Performance Reviews, areas for improvement which
were highlighted will be considered this year.
Furtherinformation on the Board Performance
Reviewcanbe found on pages 98 to 100
Looking ahead
In 2026, the Nomination Committee will maintain its
focus on ensuring that Board appointments are made
through a fair, transparent and rigorous process, aligned
with the strategic needs of the Group. Particular attention
will be given to succession planning, diversity of skills
and experience, and ongoing Board performance.
The Nomination Committee remains committed to
supporting the long-term success of the Group through
effective governance and leadership oversight.
Lastly, I would like to thank the members of the
Nomination Committee for their work during the year.
The Nomination Committee has made progress in
achieving its key duties, helped by the collaboration,
communication and commitment shown by its members.
I am confident that going into 2026, the Nomination
Committee is well-equipped to continue to ensure that
the Group maintains a robust and transparent approach
to Board composition, leadership succession, and
governance excellence.
Roger Devlin
Chair of the Nomination Committee
9 March 2026
2025 Governance Highlights
Anand Aithal appointed as a Non-Executive Director on 1 January 2025.
See page 87 for further details
Considered talent and succession planning for the Board and the senior management team.
See pages 106 and 107 for
further details
Reviewed and updated the Equality, Diversity & Inclusion Policy to ensure that this is
effective in progressing the Group towards its targets.
See page 105 for
furtherdetails
Received updates and requested details on the work undertaken by the Group in
developing a more diverse workforce.
See page 106 for
furtherdetails
Reviewed the Group’s activities to develop and retain talent and ensure robust succession
planning across the senior leadership team as well as the wider employee base.
See pages 106 and 107
forfurther details
2026 Governance Priorities
Ensuring regular reviews of the structure, size and composition of the Board and
itscommittees to ensure that it contains an appropriate combination of skills,
experience and knowledge.
See page 103 for
furtherdetails
Taking appropriate steps to further enhance the Board’s performance and
effectiveness following the outcomes of the internal Board Performance Review.
See pages 98 to 100
for further details
Reviewing the Group’s activities to develop and retain talent and ensure robust succession
planning across the senior leadership team as well as the wider employee base.
See page 107 for
furtherdetails
Building on the existing Board Skills Matrix and identifying opportunities for further
Board development.
See page 104 for
furtherdetails
Continuing to monitor the actions to increase the diversity of the workforce.
See page 104 for
furtherdetails
Financial statementsGovernance Other informationStrategic report102 – Persimmon Plc Annual Report 2025
Summary of the Nomination Committee’s
work during theyear
The Nomination Committee receives updates on various matters including
succession planning, Board and workforce composition, and the promotion
of diversity, inclusion and equal opportunities, which are reviewed periodically
to align with the UK Corporate Governance Code 2024 and the Group’s
strategic priorities.
Theme Activity/discussion
Mar
25
Jun
25
Dec
25
Oversee the
development of a
diverse and talented
workforce
Board and Group
diversity and inclusion
Board and Group talent
Ensure that plans
arein place for
orderly succession to
both the Board and
senior management
Board/management
skills mapping
Board succession
Senior leadership
succession
Other Corporate reporting
Corporate governance
matters
Composition of the Nomination Committee
During the year, the members of the Nomination Committee comprised
theChairman of the Board, who also chairs the Nomination Committee,
aswell as the Board’s Independent Non-Executive Directors. As previously
reported, Anand Aithal joined the Nomination Committee on 1 January 2025.
Members are recused from meetings when the Nomination Committee
discusses matters which may concern them. In line with its role and
purpose, the Nomination Committee receives updates on matters including
succession, diversity and talent development. Meetings are also attended,
in full or in part, by other individuals upon invitation, for presentations and
updates. Attendees include the Group Chief Executive, the Chief HR Officer
and the Director of Talent and Diversity. The Nomination Committee’s terms
of reference mandate that the Nomination Committee should meet at least
twice a year and otherwise as required. During the year, the Nomination
Committee held three scheduled meetings.
During the year, the Board and its Committees underwent an internal
Performance Review, which included a dedicated review of the Nomination
Committee. This Performance Review assessed the Committee’s effectiveness
across key areas such as its remit and responsibilities, composition, leadership,
and the robustness of its processes and procedures. The overall comments
received were positive, including that the Nomination Committee Chair is
an effective leader, communication flows are effective between the Board
and the Nomination Committee, and that the members of the Nomination
Committee feel confident bringing business challenges and concerns to the
Committee for discussion.
Further information on the internal Performance Reviews can be found on pages
98 to 100
Board composition
Board changes and inductions
As previously reported, following his appointment to the Board, Anand
Aithal received a comprehensive and tailored induction to the Group.
Facilitated by the Company Secretary, the induction took place over
several days and included meetings with senior executives across the
Group and key external parties, as well as operational site visits.
Following the completion of his induction, Anand provided feedback to
assist in refining the process for future appointments. Anand’s feedback
was positive and confirmed that he particularly benefited from in-person
meetings, which assisted him to build relationships with the Group’s senior
executives and key external parties.
Nigel Mills retired from the Board and as Senior Independent Director, at
the conclusion of the Company’s Annual General Meeting on 1 May 2025,
after nine years of valuable service. Following Nigel’s retirement, and due
to her strong leadership skills, accompanied by her governance expertise
and proficiency in stakeholder management and mentoring, Annemarie
Durbin was appointed as Senior Independent Director. Since her appointment
as Senior Independent Director, Annemarie has fostered open dialogue
and served as a trusted sounding board for the Chairman and her fellow
members of the Board.
The biographies of the Board, which contain information on their experience and
skills, can be found on pages 86 and 87
Persimmon Plc Annual Report 2025 – 103Financial statementsGovernance Other informationStrategic report
Board Induction Packs
Directors receive access to key information and attend introductory
meetings as appropriate, including the following:
Update on
strategy and
progress made
toward it
Meetings with
key third-party
advisors
Meetings with
key internal
senior leaders
Access to Board
documents inc.
financial
information and
organisational
structure
Site visits
Director Inductions
- Key Information
Board Skills, Knowledge
andExperience Matrix
The assessment of the Board’s skills includes scoring
against a variety of competency areas, including
strategic thinking and leadership, governance and
compliance, industry experience and knowledge,
technology and innovation, and financial reporting
oversight. In addition to this, the Board’s diversity and
social mobility data were also reviewed. The matrix
includes competency areas considered important to
deliver the Group’s strategy, with the challenges and
opportunities facing the Group. The current blend of
skills, knowledge, experience and capabilities of
Board members is considered appropriate to deliver
the Board’s strategy. The Board’s skills will be reviewed
regularly and any gaps would be addressed in future
appointments or by leveraging external support and training.
Equality, Diversity and Inclusion
The Nomination Committee monitors the Group’s
progress against the Equality, Diversity and Inclusion
Strategy. It also monitors recruitment and succession
planning processes, to ensure they reflect the Group’s
commitment to building a diverse and inclusive workforce.
In line with this commitment, appointments to the Board
and Senior Management are made to promote diversity,
inclusion and equal opportunity across the organisation.
The Nomination Committee received updates on
enhancements to the Group’s recruitment processes
aimed at attracting a more diverse range of candidates.
The Group appointed a new Talent Acquisition Manager,
whose role includes reshaping the employer brand
and driving progress towards the Group’s diversity
targets. In addition, the Committee noted the Group’s
partnership with a specialist recruitment provider to
deliver targeted initiatives that support inclusive
recruitment practices. These developments reflect the
proactive approach that the Group is taking to embed
the principles of the Equality, Diversity and Inclusion
Strategy into recruitment and succession planning,
ensuring that the Group continues to build a workforce
that reflects the communities it serves.
Nomination Committee report continued
Financial statementsGovernance Other informationStrategic report104 – Persimmon Plc Annual Report 2025
Board appointment process
1 – Specification
Objectives for recruitment agreed. Candidate specification reviewed and
refreshed. This includes a candidate specification describing the Group’s
business and strategy, and essential candidate skills and experience.
Consideration is given to the existing composition, size, skills, experience
and knowledge of the Board, and to ensuring that the appointment process
supports diversity, inclusion and equal opportunities.
2 – Search
The Nomination Committee usually engages with an external search firm
which specialises in recruitment in this area. Identification of a diverse pool
of candidates, both internal and external (role dependent), using inclusive
search practices and objective assessment criteria to support
equalopportunities.
3 – Assessment
A longlist of candidates is produced. Candidates are assessed for a number
of factors including knowledge, capability, leadership and delivery. A
shortlist of candidates is agreed.
4 – Interview
The shortlisted candidates are interviewed by the Nomination Committee
and other senior executives (role dependent). Preferred candidates may be
requested to undertake other assessments and/or interviews with external
third parties. The interview process will often be supported by the Chief
HROfficer.
5 – Selection, recommendation and appointment
The Nomination Committee considers the feedback from the
interviewsandreferences are sought. The Nomination Committee makes
arecommendation to the Board regarding the appointment. The Board
thenconsiders, and if appropriate, agrees the appointment. Following the
appointment, an announcement is made to the London Stock Exchange.
Diversity and Inclusion Dashboard
During the year, the Nomination Committee regularly reviewed
diversity data presented by the Chief HR Officer and Director
ofTalent and Diversity. This included the Group’s performance
against gender and ethnicity targets, broken down by function,
aswell as analysis of employee composition by gender, age,
ethnicity, disability, and length of service.
Equality,
Diversity &
Inclusion
Strategy
Communication
TrainingCustomer
Recruitment
Data
Future
talent
Disability
Religion
and Culture
Future Goals: By 2030, to have a more
diverse and inclusive workforce, with a
particular focus on increasing diversity
among our employees andleadership.
Diversity and Inclusion employee
data available 2025 (v 2024)
Number of female senior managers
2025 (v 2024)
Number of ethnic minority
employees 2025 (v 2024)
Policy and strategy
The Group remains committed to fostering an inclusive
culture that promotes equality, fairness and respect for
all individuals. Our Equality, Diversity and Inclusion
Policy (‘ED&I Policy’), applies to all employees. It will
be reviewed regularly by the Nomination Committee,
to ensure its continued effectiveness and alignment
with best practice, and to ensure that it promotes the
desired culture, values and wider strategy. The Policy
includes the Group’s approach to preventing unlawful
discrimination in line with the Equality Act 2010 on
thebasis of protected characteristics, including race,
disability, or age.
To support delivery of this commitment, during the
yearthe Group implemented an Equality, Diversity &
Inclusion Plan that outlines the governance framework
and actions required to embed diversity and inclusion
across key areas such as recruitment, training, career
development and accessibility. While the ED&I Policy
references specific legal protections, the Group
recognises that diversity extends beyond these
characteristics and is dynamic in nature. The Board
firmly believes that a diverse workforce enhances
innovation, strengthens organisational performance
and reflects our customer base and the communities
inwhich we operate.
Outcome: The refreshed ED&I Policy provides colleagues
with clear examples of how the Group is putting equality,
diversity and inclusion into action, as well as listing
examples of the responsibilities of colleagues. More
comprehensive guidance is included on raising concerns
and finding support, encouraging colleagues to speak
up if they have experienced discrimination, harassment
or victimisation. The Policy also sets out a clear statement
of why diversity and inclusion are important to the
Group, outlines the relevant legislative context, and
explains what ED&I means in practice in terms of
expected behaviours. It further details the actions the
Group is taking to embed ED&I across its operations,
ensuring that colleagues understand both the organisational
commitment and their role in supporting it. Following
careful consideration, the Nomination Committee
agreed that the refreshed ED&I Policy be adopted
andis confident that this sets clear standards to ensure
colleagues feel respected and valued in an environment
where people from all backgrounds can thrive.
The Board sets the tone from the top by championing
Equality, Diversity and Inclusion values and ensuring
they are reflected in strategic decisions, policies, and
leadership behaviours. By meeting the FCA Listing Rule
targets on board diversity, the Board demonstrates its
commitment to representation and inclusion at the highest
level, creating a framework that sets the direction for
senior management and across the organisation. This
approach reinforces accountability and signals that
diversity is fundamental to drive innovation, fairness,
and sustainable success. Through visible leadership
and adherence to these standards, the Board ensures
that Equality, Diversity and Inclusion principles are
integral to recruitment, development, and progression
throughout the Group. This enables the Board to
advance the Group’s strategy by embedding inclusive
practices that strengthen decision-making, enhance
organisational resilience, and support long-term
sustainable success.
Additional initiatives
Existing network groups, including Persimmon Pride
and the Women’s Network, continued to meet in 2025,
whilst new networks, including the Carers Network,
were established. Alongside initiatives like ‘Persimmon
People’ and our Religion and Culture group, these
groups have played an important role in supporting
the Group’s wider strategy by helping to create an
inclusive, engaged workforce that is better positioned
to deliver high-quality outcomes, and support the
attraction and retention of diverse talent aligned to
ourlong-term organisational needs.
During the year, we launched a coaching initiative
designed to ‘lift up’ and support internal talent. This
programme directly supports the Group’s strategic
focus on developing a diverse pool of internal
capability and strengthening our succession pipeline,
ensuring that colleagues from all backgrounds have
equitable access to development opportunities and
that future leadership reflects the diversity of our
organisation and the communities we serve.
Further information on the initiatives used to support the
Group’s diversity and inclusion is located on page 107
During 2025, the Group participated in external
diversity initiatives, including the FTSE Women Leaders
Review and The Parker Review, achieving the Board
targets set by both. These external commitments
reinforce the Group’s strategic objective of maintaining
strong governance and transparency, providing
assurance tostakeholders that the Group is
progressing against recognised benchmarks for
representation and inclusion. The Nomination
Committee received updates on the Group’s progress
towards both internal and external targets. Further
information on the outcomes of the Group’s progress
made in relation to these initiatives isshown in the
following table and on page 48.
Further details on the Group’s initiatives on equality,
diversity and inclusion, and progress on achieving
theobjectives, are located on pages 27 and 48
Purposes of the Equality, Diversity
and Inclusion Policy
·
Led by the Board and Executive Leadership
team, to help ensure that the Group integrates
equality, diversity and inclusion into what
we do. To ensure that equality, diversity
and inclusion are upheld and that real
change is delivered.
·
To set responsibilities to ensure all
colleagues and managers are aware of
their role in creating an inclusive culture.
·
To protect everyone who works with us from
discrimination, harassment, and victimisation.
·
To ensure that the Group is a meritocracy,
meaning that our employees will have the
opportunity to grow and develop their
careers based on how they perform, not
oncharacteristics such as their social class
and education.
·
To ensure that everyone has equal access
to opportunities, resources and support.
·
To recognise and appreciate the perspectives,
experiences, and skills that a mix of people
from different age groups, backgrounds,
or ways of thinking can bring to the Group.
·
To ensure that everyone feels valued,
respected, and part of the team.
The Equality, Diversity and Inclusion Policy is available on
the Group’s corporate website: www.persimmonhomes.
com/corporate/sustainability/policies-and-statements/
Persimmon Plc Annual Report 2025 – 105Financial statementsGovernance Other informationStrategic report
FCA Listing Rule 6.6.6R(9) – diversity reporting
In compliance with FCA Listing Rule 6.6.6R(9) the Company reports the following diversity information
asat31December 2025:
FCA Listing Rule target Outcome at 31 December 2025 Additional information
At least 40% of Board Directors
are women
Target achieved 44% of Board Directors were women.
At least one senior Board
position* held by a woman
Target achieved Annemarie Durbin was appointed as Senior
Independent Director with effect from 1 May 2025.
The FTSE Women Leaders target was achieved.
At least one Board Director
from aminority ethnic
background
Target achieved The Board contains one Board Director from a
minority ethnic background. The Parker Review
target was achieved.
* Chairman, Chief Executive, Senior Independent Director or Chief Financial Officer.
No changes have occurred to the composition of the Board between 31 December 2025 and the date this
document was approved 9 March 2026.
Gender diversity data at 31 December 2025
Number of
Board
members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO,
SID and
Chairman)
Number in
executive
management**
Percentage
ofexecutive
management**
Men 5 56% 3 6 60%
Women 4 44% 1 4 40%
Not specified/prefer not to say 0 0% 0 0 0%
** Executive Committee only.
Ethnic diversity data at 31 December 2025
Number of
Board
members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO,
SID and
Chairman)
Number in
executive
management**
Percentage
ofexecutive
management**
White British or other White
(including minority-white groups)
8 89% 4 9 90%
Mixed/Multiple Ethnic Groups 0 0% 0 1 10%
Asian/Asian British 1 11 % 0 0 0%
Black/African/Caribbean/Black
British
0 0%
0
0
0%
Other ethnic group 0 0% 0 0 0%
Not specified/prefer not to say 0 0% 0 0 0%
** Executive Committee only.
Supporting explanation
During the year, the Committee has continued to
closely review the composition and diversity of both
the Board and the Group’s executive management
team. The journey to increase diversity within the
Board and Group as a whole has remained a focus
and whilst progress continues to be made, the Group
will continue to work to increase the diversity of
itsemployees.
During the year, the Group participated in the
FTSEWomen Leaders Review Survey and the
ParkerReview Survey.
Approach to data collection
The Company has used a consistent approach in
collecting the gender and ethnicity data displayed in
the tables above, the source of which is the Group’s
HR Information System.
All employees, including the Board, are asked to
provide information regarding their gender and
ethnicity when they join the Group. Employees can
update their gender and ethnicity details at any
timeduring their employment via the Group’s HR
Information System. Employees provide the
information on a voluntary basis.
For gender data collection, employees can
self-identify as either male, female or ‘other’.
For ethnicity data collection, employees can self-identify
based on the ethnicity categories set out by the
Office for National Statistics.
Further information on the gender balance of the Group,
including of direct reports to the Executive Committee
and all colleagues can be found in the Strategic Report
on page 48
Information on the Group’s gender pay gap can be
found in the Remuneration Report
Succession
A key role of the Nomination Committee is succession
planning and supporting a diverse pipeline of talent
with a focus on ensuring that development, progression
and succession planning processes promote diversity,
inclusion and equal opportunities across the Group.
This featured at each of its meetings during the year.
Working with the Chief HR Officer and the Director
ofTalent and Diversity, the Nomination Committee
considered the length of tenure of the Board against
the requirements of UK Corporate Governance Code
2024, and reviewed the succession plans for the Board.
Outcome: The Committee’s succession planning
activities informed the appointment of Annemarie
Durbin as the Senior Independent Director. Annemarie
Durbin was appointed as Senior Independent Director
with from 1May 2025 following Nigel Mills’
retirement from theBoard. The Committee remains
satisfied that the succession plans in place provide
appropriate continuity of leadership and support the
Group's strategic priorities.
The Nomination Committee discussed the succession
plans for key roles. This included a review of potential
internal successors, including their skills and any
development needs.
Consideration was given to how the structure of roles
may change in the future, for example as a result of
artificial intelligence and in line with the Group’s agreed
strategy. The Nomination Committee noted the
importance of considering skills required in the medium
and long term when considering succession.
Nomination Committee report continued
Financial statementsGovernance Other informationStrategic report106 – Persimmon Plc Annual Report 2025
Succession
planning
Succession planning for the senior leadership team
and wider employee base was reviewed by the
Nomination Committee during the year. Updates on
the Group’s development programmes and activities
were provided in meeting papers and via in-person
updates by the Chief HR Officer and the Director of
Talent and Diversity. The Nomination Committee
received various updates during the year, including
those on the progress made to enable employees to
develop their talent and to gain the skills and expertise
to transition to more senior roles. The Nomination
Committee noted that the changes were part of a more
collaborative culture with greater planning around
succession and supporting the development of a
diverse pipeline for succession, coupled with support
to ensure transition into the next step of careers.
Furtherexamples of the Group’s talent and succession
activities are listed in the adjacent table.
Talent and succession
planning activities Details Outcomes
Executive training/
education
programmes and
Executive coaching
Senior leadership development continued during the year via a combination of in-house and specialist
external providers. Executive training and education programmes were undertaken by several senior
leaders and managing directors. Individual executive coaching and support is also available.
Strong participation from those who took part, reinforcing a
culture of knowledge sharing and leadership development,
andsupporting the diverse talent pipeline.
Leadership
Development
Programme
The content of the Group’s Leadership Development Programme, which is made available to
high-performing functional directors, was enhanced to include sessions delivered by Non-Executive
Directors, the Chairman, members of the senior leadership team including the Managing Directors,
a Regional Chair, the Group Statutory and Regulatory Director, and the CEO.
Four of the participants in the third cohort were promoted whilst
on the programme. 46% of the participants from three cohorts
have been promoted to date, including a female MD, a female
Deputy MD and a female Group Strategic Land Director.
Advanced
Management
Programme
The Advanced Management Programme targets high performing individuals in junior and middle
management roles who have the potential to move into more senior positions.
Of the 159 participants who have completed the Programme to
date, 46% have been promoted within the Group, including
female leaders in senior roles.
Mentoring
The Group further invested in the personal and professional development of its employees during
the year, with the launch of a formal mentoring programme. The mentoring programme pairs
individuals across the Group as mentors and mentees to create mutually beneficial relationships.
Itis open to all employees and was designed to support professional growth and career
development, as well as strengthen connections across the Group. Mentoring programmes
canalso be used as useful tools to offer additional support to a diverse range of talent.
The sessions offer mentees access to aspects of the business
which they might not ordinarily see, whilst mentors are given
opportunities to improve their communication skills, build and
demonstrate leadership skills, as well as contribute to the Group’s
culture of learning and development. There are currently 52 pairs
of mentors and mentees across the Group.
Graduate Scheme
The rotational scheme provides graduates with exposure to all functions in the first year, enabling
them to make an informed choice regarding their career pathway.
The scheme is in its fifth year. Earlier cohorts now work across
multiple functions. The scheme has strengthened our early talent
pipeline, developing diverse young people into future leaders.
Apprentices
We have been instrumental in the design, development and delivery of new apprenticeship
standards to ensure our apprentices will gain the transferable skills needed to succeed in a modern
HomeBuilding industry.
Persimmon apprenticeship programs are widely available to new and existing employees throughout
the business from entry level 2-7. School and college leavers are encouraged to join the housebuilding
industry by enrolling onto Persimmon apprenticeships in recognised craft trades, technical, and
commercial roles. Established in 2024 through a partnership between the Group and Newcastle
College, the Persimmon Skills Academy continues to equip apprentices with practical, industry-focused
skills, helping to strengthen the link between education and employment.
345 apprentices across the Group supported during 2025. 12.2%
of apprentices are female, 2% are from ethnic minorities, and 52%
are from areas in the lowest five deciles of social deprivation.
Further details on the progress and achievements made in talent management and development during the year are located on pages 25 to 27
The Group has set key HR priorities for 2026, to
support business growth, enhance employee experience
and drive organisational success. These include:
·
Building on the success of our leadership
programmes, we will continue to identify and
develop high-potential leaders. This includes
expanding the Advanced Management Programme
and Leadership Development Programme to reach
more participants and strengthen talent retention.
·
Following progress in increasing female and ethnic
minority representation, we will enhance data
tracking, behavioural frameworks, and targeted
recruitment. New network groups and career
promotion campaigns will be launched, and
coaching initiatives designed to ‘lift up’ internal
talent will continue to run.
·
We will promote high-potential talent and support
succession plans by embedding a strong mentoring
and coaching culture across the organisation.
·
Building on strategic workforce planning and
partnerships with colleges and training providers,
we will place apprenticeships at the heart of our
approach. This includes targeted financial support
for smaller partners and enhanced in-house support
for apprentices.
The Board and Nomination Committee look forward to
receiving updates on the progress made toward these
priorities during 2026.
Roger Devlin
Chair of the Nomination Committee
9 March 2026
Persimmon Plc Annual Report 2025 – 107Financial statementsGovernance Other informationStrategic report
Attract
talent
Grow
talent
Retain
talent
COMMITTEE
CHAIR’SSTATEMENT
Audit & Risk Committee report
This report details the work of the
Committee within the year, and how
it has discharged its responsibilities.
In performing these duties, the
Committee has complied with the
requirements of the UK Corporate
Governance Code 2024 and
adhered to relevant best practice
guidance as published by the FRC.
The Committee’s main area of focus has been ensuring
the integrity and quality of corporate reporting. This has
included provision of an effective and high-quality
external audit, notably through oversight of a successful
audit tender exercise. The Committee has also monitored
the effectiveness and independence of the Group Risk
&Internal Audit department, and overseen the Group’s
work to increase maturity in risk management processes
and development of its framework of internal controls,
thelatter in preparation for the enhanced disclosure
requirements of Provision 29 of the UK Corporate
Governance Code 2024, coming into effect in 2026.
To fulfil its duties, the Committee has worked especially
closely with Ernst & Young LLP (‘EY’) as the Group’s
external auditor, as well as the Group Finance and
Group Risk & Internal Audit departments and other
members of the senior management team within the
Group. I am grateful for this close cooperation, which has
enabled the Committee to ensure the Group has provided
clear and accurate financial and non-financial reporting,
with appropriate challenge of accounting judgement and
estimates, and has operated with effective risk management,
internal control and internal audit regimes.
Audit & Risk Committee members
and meeting attendance 2025
Scheduled
meetings
attended
Percentage
of meetings
attended
Paula Bell (Committee
Chair) 4/4 100%
Andrew Wyllie 4/4 100%
Colette O’Shea 4/4 100%
Key duties of the Audit
&RiskCommittee
The main role of the Audit & Risk Committee is
to support the Board in fulfilling its corporate
governance responsibilities. These are
detailed fully within the Committee’s terms of
reference, the key elements of which include:
·
monitoring the integrity and accuracy of
corporate reporting, including
·
financial reporting
·
key accounting judgements and estimates
·
non-financial reporting
·
ensuring the Annual Report and
Accounts, taken as a whole, is fair,
balanced and understandable;
·
overseeing the quality, independence and
effectiveness of external audit provision;
·
ensuring the effectiveness of the Group
Risk & Internal Audit department in
delivering independent and objective
assurance; and
·
reviewing the effectiveness of the Group’s
systems of risk management and internal control.
Over the course of
2025, the Committee
has focused on driving
business resilience,
including a proactive
approach in overseeing
a risk management
andinternal
controlevolution.
Paula Bell
Chair of the Audit & Risk Committee
Financial statementsGovernance Other informationStrategic report108 – Persimmon Plc Annual Report 2025
The composition of the Committee has been remained
unchanged through 2025, ensuring the broad range of
skills and experiences to fulfil its duties effectively has
remained in place. Maintaining this continuity has been
beneficial, and I am satisfied with the overall performance
and effectiveness of the Committee through the year. As
detailed further in the Governance Report on pages 98
to100, the Committee has been subject toan internal
performance review within the year. Theresults of the
performance review were discussed by the Committee,
withaction points taken forward to the Board
forconsideration.
Areas of focus 2025
Economic and political environment
Persimmon has operated in challenging market
conditions throughout 2025. Ongoing domestic
andinternational political uncertainty, continued
inflationary pressures and affordability constraints
have combined to present a range of complex,
interdependent risks and uncertainties to the Group’s
operations. In this context, while the investments made
in the business over recent years have ensured the
resilience of the Group, the Committee has been
prudent in retaining focus on areas of accounting
judgement and estimates. This has included the Group’s
liquidity, asset carrying values, the appropriateness of
the legacy buildings provision and our Viability Statement
and going concern assessments. Management has
modelled and reviewed each of these areas extensively,
with further scrutiny and review through the work of the
external auditor. To ensure their appropriateness, the
Committee has challenged these assessments and the
underlying assumptions on which they are based.
Corporate reporting
Providing oversight of the Group’s corporate reporting,
including financial and non-financial elements, has
remained a key priority for the Committee. Oversight
has included reviewing the key controls over financial
reporting, such as those involving accounting judgements,
ensuring they remain sufficient to support accuracy
and integrity in our reporting. The Committee has also
reviewed and challenged key aspects of reporting
throughout the year, including the Half-Year Report
and the 2025 Annual Report, along with the associated
regulatory disclosures, such as those outlined by the
Task Force onClimate-related Financial Disclosures
(‘TCFD’). TheCommittee has reviewed the Group’s
2025 Annual Report and has satisfied itself that, taken
as a whole, itisfair, balanced and understandable
and, as such, provides the necessary information for
stakeholders toassess the Group’s overall position,
performance, business model and strategy.
External audit
The Committee has continued to oversee the provision
of external audit services from EY, with the aim of
ensuring a high quality of audit while maintaining
auditor independence and objectivity. This has included
active engagement with EY and management to oversee
the audit planning process for the Committee to satisfy
itself of the quality and effectiveness of the audit approach.
The Committee has successfully maintained a positive
relationship with EY, where auditor challenge is actively
encouraged and welcomed. Measures to ensure auditor
independence and objectivity have been maintained,
including the regular private meetings between the
audit partner and the Committee, the Group’s policy
limiting the extent of provision of non-audit services,
review of the auditor’s independence declarations and
periodic rotation of the audit partner. The Committee
remains satisfied that EY continues to be independent
and objective and that the Group’s audit is effective.
Having first engaged EY as external auditor in April
2016, the Group was obliged to tender its audit for
2026. The Committee oversaw, with management’s
support, a competitive tender process involving three
leading audit firms. This included a comprehensive
assessment of the merits of each audit firm’s proposal,
drawing on various measures including FRC Audit
Quality Review reports, and several stages of review
ahead of final presentations. On completion of this
tender process, the Committee recommended to the
Board that EY be reappointed as auditor for 2026.
Internal audit
The Committee has overseen the work of the Group Risk
& Internal Audit department, engaging closely with the
Director of Internal Audit, including regular private
sessions. This oversight has included approving the
department’s Charter and the risk-based audit plan,
which continues to include focus on construction and
health, safety and environment audits in addition to the
well-established core audit plan. Reporting from Group
Risk & Internal Audit has been reviewed at each meeting
of the Committee, including findings from each audit
engagement and updates on management’s response
inaddressing these. The Committee has completed its
formal assessment on the overall provision of internal
audit, and remains satisfied of its continued
effectiveness and independence.
Risk management and internal control
In line with our well-established annual process,
conducted on behalf of the Board, the Committee
reviewed the Group’s risk management and internal
control arrangements, with reporting on both matters
provided to each meeting of the Committee. This
included discussions on principal and emerging risks
(detailed further on pages 70 to 76), and the
effectiveness of our internal controls in mitigating their
impact. The Committee has engaged with outputs from
the Management Risk Committee, and reviewed and
approved a new risk management strategy, including
an expansion of resource into the Group Risk &
Internal Audit department, supporting the Group’s
progress in enhancing maturity in this area. The
Committee has also monitored progress of the plan to
prepare for the enhanced disclosure requirements of
Provision 29 of the UK Corporate Governance Code,
including updates from management on the process
taken to identify the Group’s material controls and
toensure these are both designed and operating
effectively. These measures will support the Group in
becoming more resilient, while also driving process
improvements. Both the Board and the Committee
have also been mindful through the year of the
Group’s potential exposure to cyber security and data
risks, and the importance of maintaining strong
controls and resilience measures. Management has
updated the Committee on the continued strengthening
of the Group’s cyber and datacontrols and will
continue to do so through 2026.
Anticipated areas of focus for 2026
The Committee has had a particularly busy 2025,
delivering on all aspects of the responsibilities outlined
within its terms of reference. Highlights, as noted
above, have included the successful conclusion of the
audit tender process and overseeing the continued
progress in strengthening the Group’s systems of risk
management and internal control.
It is expected that the core areas of focus for the
Committee will remain largely unchanged in 2026.
There will be an enhanced focus on business resilience,
including the maintenance of robust cyber controls
supported by appropriate business continuity arrangements.
Similarly, the Group’s progress in enhancing the maturity
of its approach to risk management, and its preparations
to ensure readiness for the additional requirements of
Provision 29, will continue to be areas of focus. The
Committee will also remain mindful of ongoing economic
uncertainty and an evolving, increasingly complex risk
environment, and will continue to support the Group as
it navigates these challenges to deliver on its strategy.
Paula Bell
Chair of the Audit & Risk Committee
9 March 2026
Persimmon Plc Annual Report 2025 – 109Financial statementsGovernance Other informationStrategic report
Activities of the Committee in 2025
In alignment to the Group’s financial reporting calendar, the Committee has a well-established annual cycle of activities. These collectively ensure the appropriate and timely oversight for each of the key areas of responsibility for the
Committee. The annual cycle is finalised in the Committee’s March meeting, with the review of all year end reporting matters, including the assessment of areas of significant financial judgements, review of viability and going concern
disclosures, and the assessment of the draft Annual Report and Accounts to ensure it is fair, balanced and understandable. The key activities in each of the areas of Committee focus are set out below, with links to the Group’s strategic priorities.
Key priorities
1
Build quality and safety
2
Customers at the heart of our business
3
Disciplined growth: high-quality land investment
4
Industry-leading financial performance
5
Supporting sustainable communities
Areas of Audit & Risk Committee focus
Link to strategic priorities
1 2 3 4 5
Corporate
reporting
Review of 2025 Annual Report as fair, balanced
andunderstandable
Review of draft full-year results, including viability and going
concern assessments
Review of draft TCFD reporting for the Annual Report
Half-Year Statement review, including going concern assessment
Review of significant financial judgements and issues
External audit
Independence review
Fee structure review and approval
Audit plan finalised and agreed
Review of External Audit Report on half-year and full-year audit
Review of proposal to appoint external auditor for assurance
oncarbon emissions reporting
Private meeting with the Committee members
Review of external auditor performance
Review of audit tender 2025 plan
Review of audit tender responses and recommendation
onappointment
Areas of Audit & Risk Committee focus
Link to strategic priorities
1 2 3 4 5
Internal audit
Review of the report of Group Risk & Internal Audit
Review and approval of Group's Internal Audit Charter
Update on changes to Global Internal Audit Standards
Private meeting with the Director of Internal Audit
Formal review of Group Risk & Internal Audit independence
andeffectiveness
Approval of the 2026 annual Internal Audit Plan, resourcing
anddevelopment plans
Risk
management
and internal
control
Review of the overall effectiveness of risk management
andinternal controls
Risk management and internal control updates, including
Provision29 readiness assessment
Tax Status Report
Review of the Group’s anti-money laundering controls
Review of the Group's draft Artificial Intelligence (AI) Policy
Legacy Buildings Progress Report
Update on principal and emerging risks
Business resilience: Cyber security update from Group Chief
Information Security Officer (CISO)
Business resilience: Update on Business Continuity Plans
Committee
governance
Review of Committee terms of reference
Review of Committee evaluation results
Review of Committee plans for 2026
Audit & Risk Committee report continued
Financial statementsGovernance Other informationStrategic report110 – Persimmon Plc Annual Report 2025
Priorities and main areas of activity during the year
1
Corporate reporting
Significant financial judgements and issues reviewed in the financial year
The Committee has assessed the most significant financial judgements and issues affecting the Group’s financial
statements for 2025. These are outlined below:
Area of judgement
Key accounting policies,
judgements and key sources
of estimation uncertainty Factors considered by the Committee and outcome
Disclosure in
theGroup’s
financialstatements
Revenue
recognition
Revenue recognition
could be subject to
misstatement in the
eventof cut-off errors or
potential management
bias. Thiscould
adversely affect the
Income Statement.
The accounting treatment for revenue recognition is well
established, being directly linked to cash receipts for most
private sales and dictated by contractual terms for salesto
affordable providers.
External audit procedures include assessment on the
accuracy of revenue and cut-off controls through use ofdata
analytics tools, enabling tracing of recorded sales through
to cash receipts and legal completion statements. Revenue
from housing association sales isalso assessed based on
theterms of the relevant contracts.
Outcome: Having reviewed the management controls
overrevenue recognition, and considered the assurance
provided bythe external auditor, the Committee is satisfied
that the Group’s revenues are reported accurately.
The analysis of
total Group
revenues is
detailed further
within note 5 to
thefinancial
statements.
Inventory
valuation
andprofit
recognition
The carrying value
ofland and work in
progress could be
subject to impairment in
the event that underlying
estimates, such as those
on market conditions
andanticipated selling
prices, prove to be
inaccurate, or if market
conditions were to
deteriorate significantly.
The Committee has retained its close focus on understanding
and challenging management’s processes for monitoring
land and work in progress valuations and profit recognition.
Valuation processes are routinely tested by Group Risk &
Internal Audit and reported to the Committee. There is also
extensive external audit testing on inventory valuation
through a range of procedures such as assessments of
margin evolutions and historic margin forecasting accuracy,
sensitivity analysis on low margin sites and a review of
impairment risk on a sample of sites. These procedures are
setout in detail in the Independent Auditor’s Report on
page146.
Outcome: Having reviewed the Group’s inventory valuation
and profit recognition controls, and the various sources
ofassurance on their effective operation, the Committee
hasconcluded that the net realisable value of the Group’s
land and work in progress as held at 31 December 2025
was appropriate.
Further detail is
set out within
notes 3 and 19 to
thefinancial
statements.
Area of judgement
Key accounting policies,
judgements and key sources
of estimation uncertainty Factors considered by the Committee and outcome
Disclosure in
theGroup’s
financialstatements
Legacy
buildings
provision
The value of this
provision could prove to
be inaccurate if further
legacy buildings were
identified or brought
within the scope of
remediation. Cost
forecasts that inform the
value of the provision
could also prove
inaccurate as the
remediation works are
contracted and delivered.
The Committee received routine and comprehensive reports
from management on the status of work on legacy buildings.
This has included updates on the scope of affected buildings,
the current and anticipated future cost of meeting the Group’s
obligations, and the basis on which the provision has been
utilised, treated and disclosed within thefinancial statements.
The Group Risk & Internal Audit department has assessed
processes and controls within the Special Projects team
managing the remediation works and has reported its
conclusions to the Committee. The external auditor has also
assessed the Group’s key processes and controls in relation
to legacy buildings, including the basis for the scope of
buildings covered by the provision. Movements in management’s
provision schedule have been assessed, andtesting performed
on expenditure to tie back to third-party evidence. Further
detail is provided in the Independent Auditor’s Report on
page 146.
Outcome: As a result of its review and challenge of
management reporting, and its assessment of Group Risk &
Internal Auditdepartment’s conclusions and external audit
procedures, the Committee is satisfied that the carrying
value of the provision isappropriate.
Further detail of
the approach
taken on legacy
buildings is set out
within note 23 to
thefinancial
statements.
Management
override of
controls
Accounting estimates
reliant upon judgements
could be subject to
manipulation in order to
impact the financial
statements.
Manual journals posted to significant risk areas were subject
to testing to confirm the appropriate accounting treatment.
The year on year movements in judgemental accruals
werealso assessed to identify accounting impact.
Outcome: The Committee has assessed both the Group’s
existing control environment and management’s plans to
improve controls further, including enhanced automation
toreduce the frequency of manual accounting entries.
TheCommittee has also taken further assurance from the
additional testing performed in this area in 2025, through
boththeGroup Risk & Internal Audit department and
externalaudit.
Other
non-
underlying
items and
exceptional
transactions
The treatment and
valuation of acquisitions
and disposals, or other
non-routine transactions
may involve elements of
judgement.
The Committee has received reports from management on all
non-routine transactions within the year, including the disposal
of FibreNest, the acquisition of Lone Star Land and the
treatment of costs relating to other ongoing projects or areas of
potential uncertainty. In each case, feedback on the procedures
performed by external audit has also been considered.
Outcome: From its challenge of management’s presentations
and review of the procedures performed by the external
auditor, the Committee has satisfied itself that accounting
treatments and reporting on these matters are appropriate.
Further detail on
exceptional
transactions is set
out within notes 6
(project fees and
FibreNest
disposal) and 7
(Lone Star Land
acquisition).
Persimmon Plc Annual Report 2025 – 111Financial statementsGovernance Other informationStrategic report
Priorities and main areas of
activity during the year continued
1
Corporate reporting continued
Going concern and viability
The Committee has reviewed the assessment and conclusion
of management that the Group continues to be a going
concern and that the financial statements should be
prepared on a going concern basis. This has included
detailed review of the Group’s current financial
position and factors that including market conditions
and access to funding facilities, as well as the review
of the conclusions of the external auditor (as outlined
in the Independent Auditor’s Report on pages 144
and145).
The Group’s Viability Statement, which is detailed
further on pages 77 to 79, has also been subject to
review and challenge by the Committee. The assessment
of viability is based upon a range of comprehensive
stress testing scenarios, each of which focuses on the
potential impact of severe disruption in the market for
new homes over the short to medium term. The basis of
these scenarios, which assume substantial reductions
in sales over a relatively short period, compounded by
reduced average selling prices and impairments of
asset values, has been reviewed and challenged by
the Committee.
Outcome: The Committee has concluded that there
was a sound basis to provide the going concern and
viability confirmations in this Annual Report and has
made recommendations to the Board to this effect.
Fair, balanced and
understandableassessment
A draft version of the Group’s 2025 Annual Report
was reviewed at the Committee’s meeting in March 2026
and, at the request of the Board, assessed to determine
whether taken as a whole, it was fair, balanced and
understandable. This included a review as to whether
the Annual Report provided the necessary information
to enable shareholders to assess the Group’s overall
position, performance, business model and strategy.
The assessment considered a broad range of information,
including the routine reporting it receives from the
Group Finance function, senior management, the external
auditor and the Group Risk & Internal Audit department.
It has also assessed the underlying accounting policies
and processes governing financial reporting, and the
feedback and assurances from both operational teams
and external advisors concerning quality of information
and adherence to requirements under the Companies
Act, the UK Corporate Governance Code 2018,
Listing Rules and other relevant reporting regulations.
Outcome: The Committee has concluded that it
considers the 2025 Annual Report to be fair, balanced
and understandable, and that it both accurately
reflects the performance and position of the Group
and meets the required expectations of shareholders.
2
External audit
The Committee has primary responsibility for
overseeing the relationship with EY as the Group’s
external auditor. This includes reviewing EY’s areas of
focus, assessing their performance, effectiveness and
independence, and making recommendations to the
Board on reappointment or replacement. Oversight of
the Group’s external audit provision has been conducted
with reference to the FRC’s ‘Audit Committees and the
External Audit: Minimum Standard’, key elements of
which are built into the Committee’s terms of reference.
Further detail on the main aspects of the oversight
activities is outlined below.
Key areas of focus and challenge
The Committee has engaged closely with the external
auditor throughout the year. Reports from EY were
provided ahead of each meeting, including a final
report and presentation of the 2025 audit results for
the Committee’s meeting in March 2026. The Committee
has reviewed these reports and provided constructive
challenge through the year, with particular focus on
the significant financial judgements outlined above,
and risk areas such as management override of controls,
impairment of goodwill and intangible assets, share-based
payments, the closed sites provision and valuation of
the Group’s defined benefit pension scheme obligations.
The Committee has also considered the approach
taken in EY’s assessment of the Group as a going
concern, the evaluation of the Viability Statement and
EY’s requirements as auditor to address the Board’s
application of the UK Corporate Governance Code
2024 (see Independent Auditor’s Report on page 149).
Outcome: The Committee has satisfied itself that EY’s
areas of focus remain appropriate, and the challenge
provided in these was sufficient to support a quality
audit in the interests of all stakeholders.
Performance and effectiveness
The provision of a high-quality and effective external
audit continues to be a key area of focus for the Committee.
External auditor performance is assessed through a
range of measures. These include assessing the delivery
of the agreed audit plan, the quality of audit reporting
(particularly in respect of key accounting judgements
and estimates), demonstration of appropriate auditor
scepticism and challenge, and outputs from the private
meetings with the audit partner.
Internal stakeholders also provide the Committee with
feedback on auditor performance, gathered through a
comprehensive survey of those involved with the audit
process, conducted shortly after the conclusion of the
audit. This gathers input on several measures in line
with FRC guidance, such as the mindset, culture, skills
and knowledge of the External Audit team, as well as
feedback on the efficiency and depth of the audit
process. The results of the survey are consolidated
andsummarised for the Committee’s review at a private
session without the External Audit team being present.
Outcome: The Committee concluded that EY’s had
performed its audit and related services effectively,
efficiently and to a high quality.
Independence and fees
The Committee monitors the independence and objectivity
of the external auditor and lead partner on an ongoing
basis, with a formal review completed annually. The
approach to assessing auditor independence and
objectivity has remained consistent with prior years,
and includes a range of measures including the following:
·
Audit partner rotation: The lead audit partner is
Victoria Venning, who has held the role since April
2021. The policy of the Group requires rotation of
the audit partner at least every five years. As such,
and following a tender of the external audit provision
(see below), Victoria will be replaced as lead audit
partner by Kevin Weston for the 2026 audit.
·
Auditor independence declarations: Detailed
independence confirmations are provided by the
external auditor, prepared in line with the provisions
of the FRC Ethical Standard and ISA (UK) 260
(Communication of audit matters with those charged
with governance). This confirmation is formally
reported to, and subject to the review and
approvalof the Committee.
·
Private meetings with external audit: The
Committee has regular scheduled private meetings
with the EY team, in which confirmation is sought
that it has not been subject to any restriction in
scope, access to materials or individuals, or
anyother hindrance.
·
Non-audit services: The Group has a defined
policy on provision of non-audit services by the
external auditor. This policy restricts the nature of
the works that the external auditor may perform,
requires Committee pre-approval for non-audit
services, and caps the aggregate amount of fees
payable to the auditor for such services to a
maximum of 70% of the average of audit fees in
theprior three years. The terms of the policy provide
a comprehensive safeguard over the independence
and objectivity of the auditor, both in fact and
appearance. Within 2025, the non-audit services
provided by EY included audit related fees of
£96,000 for their work on their review of the
Group’s 2025 Half-Year Report. EY also received
payments of £74,000 and £5,000 for assurance
work on carbon emission reporting and for the
audit of the 2024 annual report of the Persimmon
Charitable Foundation respectively. The fee paid to
EY for its audit work for the 2025 financial year was
£837,217. This has resulted in a ratio of audit fees to
non-audit fees for the year of4.8:1.
Outcome: The Committee remains satisfied that the
various safeguards on auditor independence have
operated effectively in the year, with non-audit
services provided being insufficiently material to affect
independence. As such, the Committee continues to
consider that EY, and Victoria Venning as current lead
audit partner, remain both independent and objective.
Audit & Risk Committee report continued
Financial statementsGovernance Other informationStrategic report112 – Persimmon Plc Annual Report 2025
External audit tender
EY was first appointed as the Group’s auditor in
April2016, following a competitive tender exercise
involving three leading audit firms. At the recommendation
of the Committee, and to adhere to the provisions of
the Statutory Audit Services for Large Companies
Market Investigation (Mandatory Use of Competitive
Tender Processes and Audit Committee Responsibilities)
Order 2014, an external audit tender process was
undertaken within 2025 ahead of the full-year audit
for 2026. The tender process was led by the Committee
with management support, following guidance set out
by the FRC in its ‘Audit Committees and the External
Audit: Minimum Standard’ document. The tender exercise
involved a shortlist of four leading audit firms, of which
three proceeded to bid, including one challenger firm.
Robust processes were followed to assess the merits of
each prospective audit firm and their proposal, with a
range of measures considered including audit quality
(with reference to
each firm’s most recent FRC Audit
Quality Review reports)
, potential conflicts of interest
and independence checks, resourcing, and
identification of key individuals with the appropriate
skills and experience to act as potential lead partners.
The detailed criteria for assessing success in each of
these measures were agreed by the Committee ahead
of the tender process. The process involved multiple
stages, all overseen by the Committee, enabling the
prospective audit firms to gain an understanding of the
business and develop their detailed proposals. Formal
presentations of the final proposals were then made to
the Committee, which reviewed them in detail against
the agreed criteria, before making the
recommendation on auditor appointment to the Board.
Outcome: Following its review of the tender process,
the Committee made its recommendation on auditor
appointment for 2026 to the Board. The recommendation
comprised a preferred audit firm and an alternative
firm. After careful thought and consideration, the
Board has agreed to propose the reappointment
ofEYas the Group’s external auditor at the AGM
tobeheld in April 2026.
3
Internal audit
The Group Risk & Internal Audit department plays a
key role in the provision of independent and objective
assurance to the Board, acting as a ‘third line’ function.
The Committee reviews and approves the department’s
role, mandate and independence as set out in its
formal Charter, which is aligned with the Global
Internal Audit Standards. Independence of the
department is maintained by a combination of
measures, including the Director of Internal Audit’s
joint reporting line to the Group CFO and Chair of
theCommittee and regular private sessions with the
Committee and Director of Internal Audit. As the
Director of Internal Audit has been in post for over
seven years, the Committee has also formally assessed
and confirmed the continued independence of this
role, in line with the requirements of the Chartered
Institute of Internal Auditor’s Internal Audit Code
ofPractice.
An annual Internal Audit Plan is developed by
theDirector of Internal Audit, based on a range
ofconsiderations such as principal risk coverage,
standing items, management requests and entity
coverage. This plan is then subject to various stages
ofmanagement review, including consultation with
ourco-source internal audit providers, before being
presented to the Committee for final review and
approval. The 2025 plan has maintained discrete
areas of audit activity, with separate plans for construction
and health, safety and environmental (’HS&E’) matters
in addition to the core audit activities on other areas of
the business, which included cyber risk, modern slavery,
sustainability and treasury processes.
Over the course of the year, the Committee reviewed
routine reports from the Director of Internal Audit, who
attends all meetings of the Committee. These included
detailed reporting on the results and findings of all
completed internal audits, progress against the Audit
Plan, the follow-up status of agreed actions and
various audit KPIs and improvement plans.
The Group Risk & Internal Audit department satisfactorily
delivered on the agreed Audit Plan for 2025, subject
to some work being deferred or revised to accommodate
additional requests from Board and management at
various points through the year.
Looking ahead, the department’s 2026 plan has been
reviewed and approved by the Committee. The plan
has been further developed to build on the 2025
approach of operating company controls reviews,
along with a small number of thematic audits.
The Committee also reviews and approves the Group
Risk & Internal Audit department’s resourcing. Within
2025 this has included a reshaping of the department
to new roles for a risk management specialist to
support the Group’s risk management strategy and
agraduate position.
Outcome: The Committee has approved the Group
Risk & Internal Audit department’s Charter and
Audit
Plan and has considered its reports and management’s
response to audit findings and actions. Having carried
out the oversight duties required by the UK Corporate
Governance Code and under the Committee’s terms
ofreference, the Committee is satisfied that the
GroupRisk & Internal Audit department has delivered
high-quality assurance activities, remains adequately
resourced and continues to be both independent
andeffective.
4
Risk management andinternal control
The Group’s systems of risk management and internal
control have been an area of growing focus for the
Committee. Work in this area has included a range
ofmatters as outlined below:
Risk management and the assessment
ofprincipal and emerging risks
The Committee received routine updates on the status
of the principal and emerging risks facing the Group,
including commentary on trends and proposed changes
to the risks as assessed by the Group’s Management
Risk Committee (’MRC’). At the Committee’s December
meeting, a final assessment of the principal and emerging
risks was presented by management for approval.
Beyond the Group’s principal and emerging risks,
arange of other material and operational risks have
been identified. These risks are subject to routine
monitoring to ensure they are accurately assessed,
andthat appropriate mitigation measures are established.
Within 2025, the Committee has overseen several
improvements to the Group’s overall risk management
framework, as led by the MRC. In addition, the
Committee has approved the Group’s updated risk
management strategy, and overseen the provision of
additional specialist resource within the Group Risk &
Internal Audit department to deliver the improvements
this sets out, under the supervision of the Director of
Internal Audit. The measures, and the Group’s broader
approach to managing risk are detailed further on
pages 70 to 72.
Outcome: The Committee has challenged and ultimately
agreed management’s assessment of the principal and
emerging risks facing the Group. The Committee has
also approved the Group’s risk management strategy
and resourcing, and the actions planned to strengthen
overall risk management maturity.
Internal control
The Group continues to operate systems of internal
control aligned with the ‘three lines’ model as detailed
further on pages 70 to 76. Many aspects of the control
environment are well established; however, itremains
subject to continuous improvement, driven both by
management action and recommendations from
second line functions and the Group Risk & Internal
Audit department. Over the course of 2025, this
included particular focus on the Group’s resilience to
cyber risk (see below) and evolving areas of legal and
regulatory change, such as the requirements under the
Economic Crime and Corporate Transparency Act
2023 (’ECCTA’).
The Committee has been apprised of the enhanced
focus on internal controls and disclosure requirements
set out in Provision 29 of the UK Corporate Governance
Code 2024, which take effect from January 2026.
Updates on management’s action plans to ensure
preparedness with the provision, and to strengthen
controls more generally, have been a standing item
ofbusiness for the Committee throughout the year.
Persimmon Plc Annual Report 2025 – 113Financial statementsGovernance Other informationStrategic report
Priorities and main areas of
activity during the year continued
4
Risk management andinternal control
continued
Internal control continued
This has included reviewing management’s proposed
criteria for defining ‘material controls’, which primarily
link to the Group's principal risks but also extend to
other financial, operational and compliance controls.
An interim listing of the material controls, and the
methodology to be employed to assess their design
and operational effectiveness going forward, has also
been assessed. An externally led review of the Group’s
preparations was presented to the Committee,
confirming their appropriateness and supporting the
delivery of further control improvements. This will
continue to be an area of regular engagement from
the Committee within 2026.
Outcome: The Committee has reviewed and
approved the Group’s approach to maintaining
aneffective system of internal controls, including
management’s plans to ensure preparedness for
theenhanced future reporting requirements under
Provision 29.
Business resilience: oversight of cyber
anddata risk and key business processes
Over the course of 2025, cyber and data risks have
continued to evolve with several high-profile attacks
on UK businesses having taken place. In this context,
the Committee has retained its focus on the Group’s
ongoing work to ensure an appropriately robust
control environment. This has included receiving
regular reporting from the Group’s Chief Information
Officer (’CIO’) and Chief Information Security Officer
(’CISO’), including on the attainment of the Cyber
Essentials Plus certification and in coordinating the
response to the UK Government's letter to major
businesses on 'making cyber security a board
responsibility'. The Committee has also reviewed
internal audit reports on IT and cyber risk.
The Committee has received regular updates on the
Group’s improvements in business continuity planning,
including scenario tests overseen by the MRC, and
development of manual and offline fallback processes.
Thesemeasures aim to ensure the resilience and
continuity of key processes in the event of acyber
attack or other material disruption to operations.
The Committee has also considered management’s
approach to Artificial Intelligence (’AI’), including review
of the Group’s draft policy on AI. This has recognised
the transformative potential of AI for some business
processes, but noted the importance of establishing
appropriate safeguards around its deployment.
The Committee has also received reports from other
specialists within the Group on the evolution of controls
in their areas of responsibility. Through 2025, this has
included reports on the Group’s anti-money laundering
controls, the progress and status of work on fire safety
remediation, and the Group’s tax processes and controls.
Outcome: The Committee has reviewed the Group’s
cyber and data risk posture and plans for their continued
enhancement, as well as the Group’s plans for the
deployment of AI, and is satisfied that these are
appropriate. Management reporting on other key
processes and controls has also been considered
bythe Committee, and assessed as suitable to
mitigatethe associatedrisks.
Whistleblowing
In line with the requirements of the UK Corporate
Governance Code 2024, the Group has an established
whistleblowing provision, which enables any member
of the workforce to raise concerns, anonymously if
necessary, and through a range of media available at
all times. The Chair of the Audit & Risk Committee is the
formally appointed Whistleblowing Champion for the
Group, acting as an overall sponsor and supporting
awareness of whistleblowing issues. Operationally,
the Group Risk & Internal Audit department manages
the whistleblowing process as an independent function,
providing the Committee with details of all whistleblowing
reports received, along with results of investigations
and any actions arising, and key information on any
themes or trends to the reports. The Group has continued
to benefit from its partnership with the whistleblowing
charity, Protect. Through this partnership, a benchmarking
of the Group’s whistleblowing provision was carried
out, confirming its ongoing alignment with good
practice guidance.
Outcome: The Committee has reviewed the Group’s
whistleblowing provision and remains satisfied that it is
both appropriate and effective. Where whistleblowing
investigations have identified issues of misconduct, or
areas of control weakness, the Committee has been
reviewed and approved the resulting recommendations
and management action plans.
Reviewing the overall effectiveness of risk
management and internal control
A key priority for the Committee was to assess the
effectiveness of the Group’s systems of risk management
and internal control. The Committee has well-established
processes in place to review these on both a routine,
continuous basis, and with a formal annual assessment.
The routine assessment is conducted through the
Committee’s review of various reporting on risk
management and internal control. At each meeting,
the Committee receives updates on both risk management
(including evolution of the Group’s principal and
emerging risks and other key updates from the MRC)
and internal control (with a standing item to update on
the enhancements to the Group’s control environment
and preparations for the implementation of Provision 29).
As noted elsewhere in this report, the Committee is
also regularly apprised of progress on the management
of specific risk issues, such as cyber, anti-money
laundering and legacy building remediation plans.
Assurance work is also provided, principally through
the work of the Group Risk & Internal Audit department,
but also the control testing performed by external audit.
On an annual basis, on behalf of the Board, the
Committee performs a formal assessment of risk
management and internal control. This is informed by
the reviewed of an independent summary produced
bythe Director of Internal Audit, which draws upon
FRC guidance, an analysis of audit findings through
the year, assurance activities on principal risks, and
feedback obtained from formal representations made
by the senior management and Finance teams on the
commitment to Group control requirements.
Outcome: The Committee assessed the effectiveness
of the Group’s systems of risk management and
internal control systems, and is content that no
significant failings have been identified throughout the
year. The Committee has also reviewed the regular
updates from management on workstreams to improve
the formalism and effectiveness of internal controls
ahead of the implementation of Provision 29
requirements in 2026.
5
Committee governance
The Committee maintains robust processes to ensure
that its Terms of Reference are reflective of legal and
regulatory requirements and general good practice,
and that the business of the Committee meets the
requirements set out within them. Within 2025, the
Terms of Reference were subject to minor amends only,
reflecting the interaction of the Committee with the
MRC, particularly in respect of reporting on risk and
internal control matters. The Committee also reviewed
the proposed outline agenda plan for 2026, ensuring
this satisfied the responsibilities within the Terms
ofReference.
To ensure ongoing good governance and continuous
improvement, members of the Committee undertook an
internal performance review, which utilised BoardClic,
a digital Board evaluation platform, through the
completion of a questionnaire. The results of the
performance review were discussed by the Committee,
with reference to a benchmark of other UK listed
companies, with action points taken forward to the
Board for consideration.
Outcome: The Committee has reviewed and
approved minor changes to its Terms of Reference
andthe outline agenda plan for 2026. Committee
performance reviews have been conducted and
necessary actions taken forward for Board approval.
Audit & Risk Committee report continued
Financial statementsGovernance Other informationStrategic report114 – Persimmon Plc Annual Report 2025
Other disclosures
Persimmon Plc (the ‘Company’)
isthe holding company of the
Persimmon Group of companies
(the‘Group’) and is a public
company listed in the UK and traded
on the London Stock Exchange.
The Group’s main trading companies are Persimmon
Homes Limited and Charles Church Developments
Limited. The Group trades under the brand names
ofPersimmon Homes, Charles Church, Westbury
Partnerships and Space4.
The subsidiary undertakings which principally affect
the profits and assets of the Group are listed in note 33
to the financial statements. A complete list of the
Company’s subsidiaries and residents’ management
companies under its control is contained on pages
182to 195.
Strategic report
The management report for the purposes of the
Disclosure Guidance and Transparency Rule 4.1.8.R
isincluded in the Strategic Report on pages 1 to 79
and in the Directors’ Report on pages 80 to 143. A
description of the Group’s future prospects, research
and development, the principal risks and uncertainties
facing the business and important events affecting the
Group since 31 December 2025 are contained within
the Strategic Report. Details of the financial risk
management objectives and policies of the Group
andassociated risk exposure are given in note 24
tothe financial statements.
The Board has taken advantage of s.414C(11) of
theCompanies Act 2006 to include disclosures in
theStrategic Report including: the principal risks
anduncertainties, future development, performance
and position of the Group; the financial position of
theGroup, greenhouse gas emissions, R&D activities,
and engagement with employees, customers, suppliers
and other stakeholders.
Results and return of cash
The Group’s revenue for 2025 was £3,751.3m and its
consolidated profit before taxation was £397.3m.
The Company may by ordinary resolution declare
dividends not exceeding the amount recommended
byDirectors subject to statute. The Directors may
payinterim dividends and any fixed rate dividend
whenever the financial position of the Company,
intheopinion of the Directors, justifies its payment
(and subject to regulations).
All dividends and interest shall be paid (subject to any
lien of the Company) to those members whose names
are on the register of members on the record date,
notwithstanding any subsequent transfer or
transmission of shares.
The Board has recommended the payment of a final
dividend of 40p per ordinary share for the year ended
31 December 2025, to be paid on 10 July 2026 to
shareholders on the register on 19 June 2026, following
shareholder approval at the AGM. This is in addition
to the interim dividend of 20p per share, paid on
7November 2025, to give a total dividend per
shareof60p in respect of the 2025 financial year.
Going concern
After completing a full review, the Directors have
satisfied themselves that the going concern basis
forthe preparation of the accounts continues to be
appropriate and there are no material uncertainties
tothe Group’s and Company’s ability to continue in
operation and meet its liabilities for the period up
to30 June 2027.
Further details are provided in note 2
totheFinancialStatements
Directors and Directors’ interests
The current Directors of the Company and their
biographical details are shown on pages 86 and 87.
Information on the Executive Directors’ service
contracts and the Non-Executive Directors’ letters of
appointment are given in the Remuneration Report on
page 135. All of the Directors served for the whole of
the year, with the exception of Nigel Mills, who left the
Board on 1 May 2025. The beneficial and non-beneficial
interests of the Directors and their connected persons
in the shares of the Company at 31 December 2025
and as at the date of this report are disclosed in the
Remuneration Report on page 137.
Details of the interests
of the Executive Directors in share options and awards of
shares can be found on page 136 within the same report.
Appointment and replacement
of Directors
The Directors shall be no less than two and no more
than fifteen in number. Directors may be appointed by
the Company by ordinary resolution or by the Board
of Directors. A Director appointed by the Board of
Directors holds office until the next following AGM
and is then eligible for election by the shareholders.
The Company may by special resolution remove any
Director before the expiration of their term of office.
In accordance with the UK Corporate Governance
Code 2024 the Board has determined that all
Directors will be subject to annual re-election by
shareholders. The Company’s Articles of Association
(the ’Articles’) provide that at each AGM at least one
third of the Directors shall retire from office and shall
be eligible for reappointment and therefore each
Director shall retire from office and shall be eligible for
reappointment at the AGM held in the third year
following their last reappointment.
Powers of the Directors
The business of the Company shall be managed by the
Directors who may exercise all powers of the Company,
subject to the Articles, the Companies Act 2006 and
any directions given in general meetings. In particular,
the Directors may exercise all the powers of the Company
to borrow money, issue and buy back shares with the
authority of shareholders, appoint and remove
Directors and recommend and declare dividends.
Capital structure
The following description summarises certain provisions
of the Articles and the Companies Act 2006. This is
only a summary and the relevant provisions of the
Companies Act 2006 and the Articles should be
consulted if further information is required. A copy
ofthe Articles may be obtained by writing to the
Company Secretary at the registered office.
Amendments to the Articles of the Company may
bemade by way of special resolution in accordance
withthe provisions of the Companies Act 2006.
Share capital
The Company has one class of share in issue, being
ordinary shares with a nominal value of 10p each,
which carry no right to fixed income. During 2025,
766,258 ordinary shares were issued with a nominal
value of £76,626 to employees exercising share
options. The Company received consideration of
£2,424,306 for options exercised under the Group’s
savings-related share option scheme. At 31 December
2025, the issued share capital of the Company was
320,681,126 ordinary shares with a nominal value
of£32,068,113. At 9 March 2026 the issued share
capital of the Company was 320,748,345 ordinary
shares with anominal value of £32,074,835. Further
details are provided in note 26 to the financial statements.
Persimmon Plc Annual Report 2025 – 115Financial statementsGovernance Other informationStrategic report
Share capital continued
Shares may be issued with such preferred, deferred
orother rights or restrictions, whether in regard to
dividend, return of capital, or voting or otherwise,
asthe Company may from time to time by ordinary
resolution determine (or failing such determination as
the Directors may decide), subject to the provisions of
the Companies Act 2006 and other shareholders’ rights.
There are no securities carrying special rights
withregard to control of the Company.
The Directors may allot, grant options over, or otherwise
dispose of shares in the Company to such persons
(including the Directors themselves) at such times
andon such terms as the Directors may think proper,
subject to the Articles, the Companies Act 2006 and
shareholders’ rights. At the AGM held on 1May 2025
shareholders gave Directors authority toallot ordinary
shares up to a maximum nominal amount of £10,663,951,
representing approximately one third of the Company’s
issued share capital as at 11 March 2025. Shareholders
also gave Directors authority to disapply pre-emption
rights on the issue ofshares up to 10% of the issued
share capital, being an aggregate nominal amount
of£3,199,185. Plus the additional power to disapply
pre-emption rights on the issue of shares up to a further
2% of the issued share capital, with such power to be
used only for the purposes of making a follow-on offer.
In addition, shareholders gave Directors authority to
disapply pre-emption rights on the issue of shares up
to further 10% of the issued share capital, being an
aggregate nominal amount of £3,199,185, in connection
with anacquisition or specified capital investment,
with the additional power to disapply pre-emption
rights on the issue of shares up to a further 2% of the
issued share capital, with such power to be used only
for the purposes of making a follow-on offer. These
authorities, which are consistent with the Pre-Emption
Group’s 2022 Statement of Principles on Disapplying
Pre-emption Rights, will expire at the conclusion of the
AGM on 30 April 2026. Resolutions to renew these
authorities will be put to shareholders at the
forthcoming AGM.
Votes of members
All issued shares in the Company are fully paid and
there are no restrictions on voting rights. Votes may
beexercised in person, by proxy, or in relation to
corporate members by a corporate representative.
Thedeadline for delivering either written or electronic
proxy forms is not less than 48 hours before the time
for holding the meeting.
To attend and vote at a meeting a shareholder must be
entered on the register of members at a time that is not
more than 48 hours before the time of the meeting,
calculated using business days only.
On a vote on a poll, each member present in person or
by proxy or by duly authorised representative has one
vote for each share held by the member. On a vote on
a show of hands, each member being an individual
present in person or a duly authorised representative
of a corporation has one vote. Each proxy present in
person who has been appointed by one member
entitled to vote on a resolution has one vote. If a proxy
has been appointed by more than one member and
has been given the same voting instructions by those
members, the proxy has one vote.
If the proxy has been appointed by more than one
member and has been given conflicting instructions,
orinstructions to vote for or against by one member
and discretion by another, the proxy has one vote
forand one vote against a resolution.
Details of employee share schemes are set out in
note31 of the financial statements. The Trustee of
thePersimmon Employee Benefit Trust may vote or
abstain on shareholder resolutions as it sees fit.
Transfer of shares
There are no restrictions on the transfer of securities
inthe Company. Any member may transfer their shares
in writing in any usual or common form or in any other
form acceptable to the Directors and permitted by the
Companies Act 2006 and the UK Listing Authority.
TheCompany is not aware of any agreements
between shareholders that may result in restrictions
onthe transfer of shares or that may result in
restrictions on voting rights.
Qualifying third-party
indemnity provisions and
qualifying pension scheme
indemnity provisions
The Company has granted an indemnity in favour of
itsDirectors and former Directors, against liability that
they may incur in the course of performing their duties
as Directors of the Company. The indemnity has been
put in place in accordance with section 234 of the
Companies Act 2006 and remained in force on the
date of approval of this report. Prior to granting the
indemnity, appropriate legal advice was sought by
theCompany.
The Company has not issued any qualifying pension
scheme indemnity provision.
Change of control provisions
One significant agreement contains provisions entitling
counterparties to exercise termination or other rights in
the event of a change of control of the Company. Under
the £750m Revolving Credit Facility dated 6 July 2023
(as amended 26 January 2026) and the £250m Fixed
Term Facility dated 26 January 2026, both as disclosed
in note 24 of the financial statements, all amounts
become due and payable under the terms of the
facility if any person orgroup of persons acting in
concert gains control ofthe Company.
Emissions
The Group’s greenhouse gas emissions are set
outinthe Strategic Report on page 39.
Employee involvement
The Group places considerable value on the
involvement of its employees and has continued to
keep them informed on matters affecting them and on
various financial and economic factors affecting the
performance of the Group. The Group has introduced
regular online communications to employees to keep
them updated, with a wide range of content including
updates on the Group’s operations and financial
performance, announcements about new initiatives
and introductions to key colleagues. In addition, the
Group has introduced divisional communications,
enabling the Regional Chairs to speak to their teams
via quarterly updates. These, together with a number
of functional webinars, for example, a quarterly site
managers’ webinar, mean that we are connecting
senior leaders directly with employees and giving
them the opportunity to ask questions and receive
real-time responses.
As mentioned on pages 53 and 92 of this report, the
Group has an Employee Engagement Panel (’EEP’),
meetings of which are regularly attended by our
designated Workforce Non-Executive Director. This
allows employees to receive information on Board
activities and to ask questions. The designated
Workforce Non-Executive Director gives updates
onthe Employee Engagement Panel to the Board.
Inaddition, the Remuneration Committee Chair and
the Chairman of the Board regularly attend meetings
of the EEP.
The Group’s Diversity & Inclusion Working Group,
along with our employee-led communities including
Persimmon Pride, the Women’s Network, the Carers’
Community, and the Religion & Culture Working
Group, are part of our commitment to employee
engagement, diversity, and corporate governance
best practice. The Company regularly updates its
employment policies, to which all employees have
online access through the HR Information System,
tokeep them up-to-date with information relating
totheir employment.
Further details of how we engage with our employees are
set out on page 53
The Company makes various benefit schemes available
to employees, including a savings-related share
option scheme which encourages the awareness and
involvement of employees in the Group’s performance.
All employees are encouraged to participate.
Other disclosures continued
Financial statementsGovernance Other informationStrategic report116 – Persimmon Plc Annual Report 2025
Equal opportunities
Persimmon is an equal opportunities employer. We are
committed to equality, diversity and inclusion among
our workforce and eliminating unlawful discrimination.
Our aim is for our workforce to be truly representative
of all sections of society and our customers, and for each
employee to feel respected and able to give their best.
Persimmon is committed to being inclusive for
individuals with disabilities, and will support
candidates and employees with adjustments to assist
them to perform at their best and fulfil their potential.
The Group policy is to ensure equal opportunities for
all employees across training, career development
and promotion without discrimination and to apply
fairand equitable policies which seek to promote entry
into and progression within the Group. Appointments
are determined solely by application of job criteria,
personal ability and competency regardless of race,
colour, nationality, ethnic origin, religion or belief,
gender, sexual orientation, political beliefs, marital or
civil partnership status, age, pregnancy or maternity,
or disability. Applications for employment by disabled
persons are always fully considered, with appropriate
regard to the aptitude and abilities of the person concerned.
In the event of any employee becoming disabled,
every effort is made to ensure that their employment
with the Group continues, that appropriate training is
arranged and any reasonable adjustments are made
to their working environment. It is the Group’s policy
that the training, career development and promotion
of disabled persons should, as far as possible,
beidentical to that of other employees.
Financial instruments
Details of the Group’s financial instruments are set
outin note 24 to the financial statements.
Acquisition of own shares
At the AGM held on 1 May 2025 shareholders granted the Company authority to purchase up to an aggregate of 31,991,854 of its own shares. No shares have been
purchased to date under this authority and therefore at 31 December 2025 the authority remained outstanding. This authority expires on 30 June 2026 and a resolution
torenew the authority will be put to shareholders at the forthcoming AGM.
At 31 December 2025 the Company held no shares in treasury.
Annual General Meeting
The AGM will commence at 11.00 am on 30 April 2026 at York Racecourse, Knavesmire Road, York, YO23 1EX. The Notice of Meeting and an explanation of the ordinary
and special business are given in the AGM circular, which is available on the Company’s website and which will be sent to shareholders on 23 March 2026.
Disclosure of information to auditors
The Directors who held office at the date of approval of this report confirm that, so far as they are each aware, there is no relevant audit information of which the Company’s
auditor is unaware and that each Director has taken all steps he ought to have taken as a Director in order to make himself aware of any relevant audit information and to
establish that the Company’s auditor is aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of section 418
of the Companies Act 2006.
Listing Rule Disclosures
There are no disclosures to be made under Listing Rule 6.6. As at 31 December 2025 and as at 9 March 2026, the Company had been notified under the Financial Conduct
Authority’s Disclosure Guidance and Transparency Rule 5 of the following interests in the voting rights of the Company:
As at 31 December 2025 As at 9 March 2026
Name
Number of
voting rights
1
% of total
voting rights
Number of
voting rights
1
% of total
voting rights
Nature of
holding
Norges Bank 12,737,286 3.97 12,737,286 3.97 Direct
Black Rock Inc 16,958,847 5.28 16,958,847 5.28 Indirect
1. Represents the number of voting rights last notified to the Company by the shareholder in accordance with D.T.R.5.1.
Directors’ responsibility
The Directors are responsible for preparing the Annual Report and financial statements in accordance with applicable law and regulations. The Directors consider that the
Annual Report and Accounts taken as a whole is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company’s
position and performance, business model and strategy. The Board reached this conclusion after receiving advice from the Audit & Risk Committee.
Further details are provided on page 143
By order of the Board
Tracy Davison
Company Secretary
9 March 2026
Persimmon Plc
Company registration number: 1818486
Persimmon Plc Annual Report 2025 – 117Financial statementsGovernance Other informationStrategic report
COMMITTEE
CHAIR’SSTATEMENT
Remuneration Committee report
We measure our success not only by our financial
performance and delivery for shareholders, but also
inour operating performance. In this, we continue to
retain focus on building quality homes and delivering
a high level of customer care, as measured through our
HBF rating. These results have been achieved whilst
maintaining the commitment under our values, to high
standards of health, safety and wellbeing for our
customers, our workforce and the communities in
which we build.
In summary:
·
We have delivered a strong financial performance
with growth of 12% in completions and improvement
in underlying profit of 13%, supporting cash generation
and improved ROCE in the year. This has been
achieved whilst maintaining a strong balance
sheetand investing for further growth.
·
Our focus on the quality of our homes and our
customer care has continued and we’re pleased
thatwe have retained our five-star HBF rating.
Wehave also further improved our quality scores
asthis continues to be an area of strategic focus.
·
Health, safety and the environment is foremost in
our operating model, and we have met our target in
full. We must continue building on the existing safety
culture, whilst maintaining open and transparent
incident reporting.
·
We have demonstrated strong performance against
our long-term environmental targets as set out on
page 134, reflecting the continued importance of
sustainability at Persimmon.
Remuneration Committee
members and meeting
attendance2025
Scheduled
meetings
attended
Percentage of
meetings
attended
Annemarie Durbin
(Chair) 4/4 100%
Anand Aithal 4/4 100%
Alex Depledge 4/4 100%
Nigel Mills
1
1/1 100%
1. Resigned from the Board on 1 May 2025.
We believe that our approach to remuneration for the
senior leaders and the broader workforce is aligned to
our strategy to build high-quality affordable homes for
our customers.
Our performance in 2025 and
alignment with remuneration
The Group continued to navigate challenging market
conditions in 2025, to deliver a strong performance
with 12% growth in completions and underlying profit
before tax ahead of market expectations. The performance
demonstrates the benefit of sustained investment in
recent years alongside our strategy, which has included
broad geographic coverage and increased outlets to
create a strong platform for growth.
The CEO, CFO and all of our colleagues, have
worked hard to deliver these results. The strong
financial performance in the period reflects this
commitment. Our profit and cash generation and
returns to shareholders are described in the Group
Chief Executive’s Statement on pages 13 to 15.
Persimmon has delivered a strong
performance in 2025 in a challenging
market and continues tobuild on its
strategy to deliver sustainable
growth over the long
term. Ibelieve the
2025remuneration
outcomes reflect
theGroup’s
performance and
represent a fair and
reasonable balance
of the interests of all
stakeholders.
Annemarie Durbin
Chair of the Remuneration
Committee
Financial statementsGovernance Other informationStrategic report118 – Persimmon Plc Annual Report 2025
The Committee remains focused on ensuring alignment
throughout our Company in pay decisions as well as
ensuring we can attract, retain and develop people for
delivery of our strategy. In addition, the ongoing cost
of living pressures for both our workforce and wider
communities remain a core area of consideration.
In2025, we were pleased to note:
·
a pay review for the wider workforce of 3%;
·
Real Living Wage increases in spring 2025 ahead
of the required May 2025 timeline, as part of our
accreditation as a Living Wage employer; and
·
ongoing review of key workforce data to support a
diverse workforce and the growth and development
of our people across the business.
Over the last year the Persimmon Regional and
Community Champions has donated over £1m
tomorethan 280 local charities, sports clubs
andcommunity groups.
2025 remuneration outcomes
The Committee has assessed performance relative
tothe targets and objectives set for both short and
longer-term remuneration. The targets measure
performance across a range of key metrics that
theCommittee regard as critical in challenging
management and driving stretching levels of
performance to deliver our business strategy
inlinewith our five key priorities.
Before finalising its decisions, the Committee considers
the employee and wider stakeholder experience,
inaddition to assessing the formulaic outturns.
2025 Group annual bonus
The targets were set based on our business plan and
reflecting the continuation of a difficult macroeconomic
backdrop, while still positioning the Group for growth.
As regards alignment with the overall performance of
the business, the outturns reflect that, over the course
of the year, the Group has performed strongly against
growth targets, whilst maintaining disciplined cost
control and prioritising margin protection and continuing
to invest in work in progress and the land bank in a
disciplined way for sustained long-term future performance.
This responsible delivery by management in 2025 is
reflected in our strong net margin performance and
theoverall experience of shareholders, for whom the
dividend for 2025 has been maintained.
The annual bonus opportunity for the Group Chief
Executive and Chief Financial Officer was based on
amix of financial metrics (60%) and cultural/ESG
metrics (40%).
2025 performance resulted in an annual bonus for
Group Chief Executive and Chief Financial Officer
of75.0% of their maximum (150.1% and 112.6% of
salary respectively). Half of the bonus earned by
Executive Directors is paid in cash with half deferred
into shares for three years. Details of the outturns
relative to the measures set are set out on pages
133and 134.
2023 Performance Share Plan (‘PSP’)
Having considered performance over the past three
years ended 31 December 2025 against the cumulative
targets set out in 2023, the Committee approved the
vesting level of the 2023 PSP awards at 61.6% of the
maximum. This outturn reflects performance for our
shareholders and customers, alongside sustained
focus on delivering against our environmental targets.
For the Group Chief Executive and senior management
in receipt of an award, the vested shares will be
subject to a two-year holding period before they
arereleased to the participants. Further details
areprovided on page 134.
The Committee has considered the outturn in terms
ofthe overall Group performance, shareholder and
workforce context for both the annual bonus and PSP.
In addition, the Committee considered information
from the Audit & Risk Committee on cash and operational
expenditure outcomes, including transactions, as well
as construction and health, safety and environmental
audit plans. The Committee concluded that there were
no grounds for exercising its discretion to amend the
bonus scorecard outcome or PSP vesting level and that
the outcomes reflected the overall position of the Group
at the end of the year.
Remuneration Policy
Our current Policy was approved at the 2023 AGM
with 98.7% votes in favour. At the 2024 and 2025 AGMs,
our Directors’ Remuneration Report also received votes
in favour of 97.2% and 98.2% respectively. In line with
the usual timetable for Policy renewal, we will be seeking
shareholder approval for a new Policy at the 2026 AGM.
During 2025, the Committee reviewed the current
Policy and engaged with stakeholders as appropriate.
The conclusion of the review is that the current Policy is
functioning well and supports our strategy and values.
There was strong consensus amongst stakeholders for
maintaining the overall current structure. Therefore,
theproposed new Policy will retain the framework
ofthe current Policy and we are not proposing to
makeany changes to the structure of our annual
bonusand Performance Share Plan (’PSP’) or the
incentive opportunities. The Policy is set out below
andimplementation for 2026 is set out on pages
141and 142.
·
The maximum annual bonus potential remains:
200% of base salary for the Group Chief
Executiveand up to 175% of base salary
forotherExecutiveDirectors.
·
The normal maximum PSP award level remains:
200% of base salary. In line with the current Policy,
in exceptional circumstances (such as on recruitment
of an Executive Director), awards may begranted
up to 300% of basesalary.
The following minor changes to the Policy are
proposed to ensure that it continues to support the
attraction and retention of high-calibre individuals in
an increasingly competitive market and to remunerate
executives fairly and responsibly for the delivery of
sustainable value creation. The changes are summarised
in the following table and the full Policy can be found
on pages 124 to 130.
Persimmon Plc Annual Report 2025 – 119Financial statementsGovernance Other informationStrategic report
Remuneration Policy continued
Summary of Remuneration Policy changes
Proposed change 2023 Policy 2026 Policy Rationale
Shareholding
guidelines
400% of salary. 200% of salary.
In line with the current Policy the Committee expects this holding
tobeachieved within five years of appointment.
This is aligned with both wider market and housebuilder sector practice
and aligns the in-employment shareholding guideline with the maximum
PSP opportunity.
Linking annual
bonus deferral to
shareholding
guideline
50% of bonus deferred for three years. The 2026 Policy retains the requirement for 50% of any bonus earned to
be deferred intoshares for three years but the level of deferral will reduce
to 25% of any bonus earned once the Executive Director has met their
in-employment shareholding requirement.
This reflects evolving market trends. The Committee is satisfied that through
25% of the bonus earned continuing to be deferred once shareholding
guidelines are met, alongside the ability to apply malus on unvested
Performance Share Plan awards, there continues to be sufficient
mechanisms in place to operate malus and clawback provisions.
Simplify interaction
of shareholding
guideline and PSP/
Deferred bonus
plan for good
leavers
In good leaver circumstances retained awards will
ordinarily vest and be released on the originally
anticipated timescale subject to the satisfaction of the
performance conditions and a reduction to reflect the
proportion of the performance period that has elapsed
(although the Committee has discretion to vest and
release the awards earlier, and to assess the
performance conditions accordingly, and not
toapplythe time based reduction).
For good leavers, subject to the satisfaction of the performance conditions
and a reduction to reflect the proportion of the performance period that
has elapsed, PSP awards are released on the later of i) the end of the
three-year performance period (i.e. PSP awards will not be released
before the end of the three-year performance period); and ii) two years
post-cessation (aligned to the post-cessation shareholding guideline period).
DBP awards would also vest two years post-cessation (aligned to the
post-cessation shareholding guideline period).
This change limits the shares which must be held to two years
post-cessation for a good leaver thereby reducing complexity
andadministration.
Other Changes Other minor changes have been made to aid
administration and to take account of changes in
practice since the 2023 Policy was approved by
shareholders, including that the discretion to override
theformulaic outturn for the PSP has been updated to be
consistent with the corresponding annual bonus provisions.
The proposed 2026 Policy has been determined to:
·
continue to align the interests of the Executive Directors, senior management and employees with those of shareholders and wider stakeholders, and to ensure appropriate alignment with values and key priorities;
·
ensure that remuneration and incentives adhere to the principles of good corporate governance, support good risk management practice and promote long-term sustainable Companyperformance;and
·
have a competitive mix of fixed remuneration and short-term and long-term incentives, with an appropriate proportion of the package determined by stretching targets linked to the Company’s financial and non-financial performance.
Remuneration Committee report continued
Financial statementsGovernance Other informationStrategic report120 – Persimmon Plc Annual Report 2025
2026 implementation
Salary
The salary increase for the wider workforce agreed
inJuly 2025 was 3% and the CEO and CFO’s salary
increased in line with this. The CEO's salary was increased
to £832,000 and the CFO’s salary increase to £545,900.
The CEO’s and CFO’s salaries will be reviewed in
July2026. Any increases for 2026 will be made in
thecontext of market alignment, with consideration
ofthe increase given to the wider workforce. When
finalising our approach, we will have regard to all
ofthe circumstances, including the impact of any
Executive Director salary increases on their total
remuneration opportunities. We will confirm any
changes to the Executive Directors’ salaries in the
2026 Directors’ Remuneration Report.
Annual bonus
The maximum bonus quantum will remain at 200%
ofsalary for Dean Finch and 150% of salary (less than
the Policy maximum of 175%) for Andrew Duxbury.
The overall performance metrics applying to both
Executive Directors are subject to a minor change in
2026. 60% of the bonus remains subject to financial
performance, but there is a change in the weighting
offinancial measures. In 2026 30% of the maximum
award will be based on performance against targets
for profit before tax and 30% will be based on cash
generation subject to an ROCE underpin to support
robust capital returns. This change has been made to
support delivery of our strategy to generate significant
incremental shareholder value and returns and
recognises the importance of cash generation at this
stage of the business cycle. The cultural metrics are
customer care (15%), build quality (20%) and health
and safety (5%).
The financial targets are commercially sensitive and
therefore will be disclosed in the 2026 Remuneration
Report. Delivery of a stretching target level of performance
will result in the Executive Director receiving 50% of
the maximum award. Vesting is at 20% of the maximum
for threshold performance.
Performance Share Plan
There is no change to the normal maximum PSP
awardlevel: 200% of base salary. The metrics for
PSPawards granted in 2026 are the same as those
used in 2025, namely:
Metric Weighting (%)
Relative TSR 23%
Earnings per share 23%
Cash generation 24%
Cultural 20%
Environmental 10%
The cultural metric will be based on the HBF customer
satisfaction score calculated on the new methodology
for the five-star rating.
The TSR peer group for the 2026 award will remain
the same as in 2025, namely companies comprising
the FTSE 51-100 (excluding financial services), plus
any of the major housebuilders that do not fall into this
group. Further details of the metrics can be found on
page 142.
The Board believes in the importance of cultural and
ESG metrics and this is reflected in our use of customer
care and quality in the annual bonus and PSP, and the
incorporation of a clear and measurable environmental
target in the PSP. We have reviewed our environmental
target and weighting and believe that, given the sector
in which we operate, this remains a key focus for the Group
as part of our strategy to deliver long-term sustainable
value for shareholders and our wider stakeholders.
The Committee considers that the overall Executive
remuneration approach is fair, balanced and
reasonable taking into account the interests of
allstakeholders.
Non-Executive Directors
Information in relation to the approach to Non-Executive
Director fees is set out on page 142. The Committee
determines the Chair’s fee and the Board determines
the Non-Executive Directors’ fees.
The Chair and Non-Executive Director fees are reviewed
annually in July. In July 2025, in line with the wider
workforce, fees were reviewed and increased by 3%
for the Chair and other Non-Executive Directors.
Looking ahead – key focus
areas for the Committee
for2026
The Committee believes that the proposed Directors’
Remuneration Policy is fully aligned to our five key
priorities and reflects best practice and trust thatthis
will result in a positive shareholder vote at the AGM.
2026 will require continued focus on development of
apipeline of land opportunities to underpin continued
outlet and volume growth against market conditions
that are expected to remain muted. The Committee will
continue to monitor the operation of the Policy to ensure
that targets remain relevant and stretching and that it
provides an appropriate level of reward to attract and
retain high-calibre individuals in a competitive market.
The Committee will continue to consider the experiences
of the wider workforce, shareholders and other stakeholders
and to remunerate Executives fairly and responsibly.
Itremains committed to a responsible approach to
Executive pay, as I hope this Directors’ Remuneration
Report demonstrates.
The Committee believes the Policy operated as
intended and considers that the remuneration the
Executive Directors received in 2025 is appropriate,
taking into account Group performance, personal
performance, and the experience of shareholders,
employees, andcustomers. As always, I am happy
tomeet or speak with shareholders if there are any
questions or feedback on our approach to Executive
remuneration, and I hope that we will earn your
support at the forthcoming AGM.
Annemarie Durbin
Chair of the Remuneration Committee
9 March 2026
Persimmon Plc Annual Report 2025 – 121Financial statementsGovernance Other informationStrategic report
AT A GLANCE
2025 actual remuneration
CEO
Dean Finch
CFO
Andrew Duxbury
Salary* £832,000 £545,900
Pension/salary
supplement
9% of salary in line
with wider workforce
9% of salary in line
with wider workforce
Annual bonus
maximum
opportunity
200% of salary 150% of salary
PSP maximum
opportunity
200% of salary 200% of salary
Single figure
totalfor 2025
£3,108,751 £1,822,552
* Salary as at 1 July 2025.
Implementation in 2026
CEO
Dean Finch
CFO
Andrew Duxbury
Salary £832,000 £545,900
Pension/salary
supplement
9% of salary in line
with wider workforce
9% of salary in line
with wider workforce
Annual bonus
maximum
opportunity
200% of salary 150% of salary
PSP maximum
opportunity
200% of salary 200% of salary
2025 variable pay outturns
Annual bonus earned for 2025
Reflecting a strong performance in a challenging market, the annual
bonus outcome for the CEO and CFO was 75.0% of maximum
(150.1% of salary for the CEO and 122.6% of salary for the CFO).
50% of the bonus earned will be deferred into shares for three years.
Performance Share Plan
Dean Finch received a PSP award in 2023. Based on performance
over 2023-2025 the award has vested at 61.6% of the maximum.
Afurther two-year holding period will apply to the vested shares.
Outturn (% of maximum)
Weighting (% of maximum)
28.4% 19.2%
14.8% 12.4%
14.3% 20.0%
40% 35.0%
20% 35.0%
15% 20.0%
Profit
before tax
Carbon Reduction
(tonnes CO
2
e per home
completed)
Pre-land cash
generation over
three-year
performance period
Pre-land
cash
generation
Customer care
Customer
care
12.5% 10.0%
5%
20% 10.0%
5%
Build
quality
Relative TSR
Health and
safety
0% 5% 10% 15% 20% 25% 30% 35% 40%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Remuneration Committee report continued
Financial statementsGovernance Other informationStrategic report122 – Persimmon Plc Annual Report 2025
Ensuring shareholder alignment
50% of any bonus earned by Executive Directors
isdeferred into shares for three years
Subject to performance targets being met, all PSP shares vest after
three years and vested shares are then subject to a further two-year
holding period.
Shareholding requirement guidelines are set at 400% of salary
forthe Executive Directors, with 200% of salary expected to be
achieved within five years of appointment.
Our wider workforce and communities
All permanent salaried employees are eligible to participate in a bonus and/or commission scheme.
A total base pay increase of 3% was implemented for the wider workforce effective in July 2025.
Persimmon is a Living Wage Foundation accredited employer.
Alignment to key priorities
Build quality and safety
·
Customer care and quality metrics are included as performance
conditions for annual and long-term incentives.
·
A specific health and safety metric is included in the annual bonus.
·
Failure of acceptable health and safety standards is explicitly
included in recovery provisions for annual and long-term incentives.
Reinforcing trust: customers at the heart
ofourbusiness
·
Customer care metrics are included in both our annual and
long-term incentives.
Disciplined growth: high-quality investment
·
Financial metrics included as performance conditions for incentives:
●
profit before tax;
●
pre-land cash generation;
●
total shareholder return; and
●
earnings per share.
Industry-leading financial performance
·
Financial metrics included as performance conditions for incentives:
●
profit before tax;
●
pre-land cash generation;
●
total shareholder return; and
●
earnings per share.
Supporting sustainable communities
·
Environmental metrics are included in our incentives.
Position against holding requirement of 200% expected
to be achieved within five years of appointment
Profit before tax 30%
Pre-land cash
generation 30%
Customer care 15%
Build quality 20%
Health and safety 5%
Discover more at www.persimmonhomes.com/corporate
Dean Finch – CEO
Relative TSR 23%
EPS 23%
Pre-land cash
generation 24%
Customer care 20%
Environmental 10%
Performance
share plan
performance
measures 2026
234%
Andrew Duxbury – CFO
209%
Annual bonus
performance
measures 2026
No. of employees participating in
our savings-related share scheme
(‘SAYE’)
1,868
During the year Persimmon
Regional and Community
Champions donated over
£1m
to over 280 charities
Persimmon Plc Annual Report 2025 – 123Financial statementsGovernance Other informationStrategic report
DIRECTORS’ FUTURE REMUNERATION POLICY
The Remuneration Policy (the '2026 Policy’) for Executive Directors, the Chair of the Board and Non-Executive Directors is set out below. Shareholders will be asked to approve this at the AGM to be held on 30 April 2026.
Onceapproved the Policy will apply to payments made from this date.
Until this time the Remuneration Policy approved by Shareholders on 26 April 2023 will continue to apply (the ‘2023 Policy’).
Executive Directors
A summary of the proposed changes to the Remuneration Policy is set out on page 120, together with the aims of the Policy.
To achieve the aims of the 2026 Policy, the remuneration of the Executive Directors is made up of different elements of fixed and variable pay, with a significant emphasis on performance related pay for achievement of stretching targets.
Ifchallenging performance conditions attached to variable pay are achieved in full, a substantial proportion of an Executive Director’s remuneration will be performance related.
Remuneration Policy for Executive Directors
Purpose How it operates Maximum payable Performance framework
Base salary
Core element of fixed remuneration reflecting
individual’s role and experience.
Usually reviewed annually with any increases normally taking
effect from 1 July.
When reviewing salaries, consideration is given to any increases
awarded to the Group’s salaried employees, business and market
conditions, and any change in a Director’s role and experience.
Where an Executive Director is to be promoted or where their role
is to be expanded or changed, the Committee will review the
salary payable and decide whether an adjustment is appropriate.
The Committee does not consider it appropriate to set
maximum salary levels. Any increases will generally
be in line with or below increases applied to the
Group’s salaried employees (in percentage terms).
Increases may be made above that level in
appropriate circumstances, which may include but
are not limited to, promotions, where the Committee
has purposefully set a lower starting salary for a
newly appointed Director, or if a Director’s salary
isno longer market competitive or to reflect
development and performance in role or
achangeinthe size or complexity of the role.
Although performance conditions do not apply,
theindividual’s performance is taken into account
indetermining the level of any salary increase.
Pension/Salary supplement
Provide a competitive means of saving to deliver
appropriate income in retirement.
Base salary is the only component of remuneration which is
pensionable. The Company operates a defined contribution
(’DC’)scheme.
A Director may receive a salary supplement in lieu of some or
allof the pension benefits available under the schemes.
The maximum DC pension contribution or salary
supplement (orcombination of those two elements)
is9%ofbase salary, subjectto any increase to
takeaccount of changes to the pension/salary
supplement provided to the Group’s
salariedemployees.
None.
Remuneration Committee report continued
Financial statementsGovernance Other informationStrategic report124 – Persimmon Plc Annual Report 2025
Purpose How it operates Maximum payable Performance framework
Benefits
Provided on a market competitive basis.
The benefits include: a fully financed car or cash car allowance,
Group medical scheme membership, life assurance, provision of a
mobile phone (or reimbursement of mobile phone costs), and income
protection scheme membership.
The Committee does not currently expect to change the range of
benefits offered to Executive Directors but retains the discretion to
add to the benefits available in appropriate circumstances, which
may include providing relocation allowances where appropriate.
The Committee has not set a maximum value of
benefits for Executive Directors, but the value will be
set at a level which the Committee considers to be
appropriately positioned, taking into account the
nature and location of the role and individual
circumstances.
None.
Annual bonus
The annual bonus rewards Executive Directors
for performance in the relevant year against
targets and objectives linked to the delivery of the
Company’s strategy.
A proportion, determined by reference to the satisfaction of the
share ownership guideline as set out below, of any annual bonus
earned is paidin cash.
To further link the Executive Director’s pay to the interests of
shareholders, 50% of any bonus earned (subject to a de minimis
limit of £5,000) is deferred into shares for three years. Once the
share ownership guideline has been achieved (as determined by
the Committee) the level of bonus deferral reduces to 25%.
The Committee has the discretion to override the formulaic outturn
ofthebonus, including where it believes the outcome is not
reflective ofunderlying performance or is not appropriate in the
context of circumstances that were unexpected or unforeseen at
the start of thebonus year.
Vesting of deferred bonus awards is not subject to further
performanceconditions.
Deferred bonus awards may incorporate the right to receive
additional shares calculated by reference to the value of dividends
which would have been paid on the shares up to the time of
vesting, which may assumethe reinvestment of dividends into
shares on such basis as theCommittee determines.
Recovery provisions apply, as referred to on page 127.
The maximum annual bonus potential is 200% of
base salary for the Group Chief Executive and 175%
of base salary for other Executive Directors.
Performance conditions are set annually by the Committee
to ensure that they take into consideration the Company’s
strategy and the outlook for the Company over the medium
term and are appropriate from a risk perspective.
Financial metrics such as profit and cash generation will
have the majority weighting. Non-financial metrics such
as customer care and quality, where applied, will have
aminority weighting.
Financial metrics:
Subject to the Committee’s discretion to override
formulaic outturns, payment at threshold performance is up
to 20% of the maximum, up to 50% of the maximum will be
payable for on-target performance and all of the bonus
will be payable for maximum performance.
Non-financial strategic or individual metrics:
Subject to the Committee’s discretion to override
formulaic outturns, payment of the non-financial strategic
or individual metrics will apply on a scale between 0%
and 100% of that element based on theCommittee’s
assessment of the extent to which a non-financial
performance metric has been met.
Persimmon Plc Annual Report 2025 – 125Financial statementsGovernance Other informationStrategic report
Remuneration Policy for Executive Directors continued
Purpose How it operates Maximum payable Performance framework
The PSP
To provide a link between the
remuneration of Executive Directors and
the creation of shareholder value by
rewarding Executive Directors for the
achievement of longer-term objectives
aligned to shareholder interests.
Under the PSP, the Committee may grant awards as conditional shares, nil-cost options or in such
other form as the Committee determines has asubstantially similar economic effect.
Awards vest subject to the satisfaction of performance conditions assessed over a period of not less
than three years.
The Committee has the discretion to override the formulaic vesting outturn applying to any PSP
award, including where it believes the outcome is not reflective of underlying performance or is not
appropriate in the context of circumstances that wereunexpected or unforeseen at the date of grant.
Awards are granted subject to a holding period of two years following the end of the performance
period, with the awards usually only released to the Executive Director (so that the Executive
Director can acquire the shares subject to the award) following the end of the holding period.
PSP awards may incorporate the right to receive additional shares calculated by reference to the value
of dividends which would have been paid on the shares up to the time of release, which may
assume the reinvestment ofdividends into shares on such basis as the Committee determines.
Recovery provisions apply, as referred to below.
The usual maximum award level in respect
of any financial year of the Company is
200% of base salary. However, in
exceptional circumstances (such as on
recruitment of an Executive Director),
awards may be granted in respect of any
financial year of the Company at the level
of up to 300% of base salary.
Performance conditions applying to
awards under the PSP will be based on
financial and/or strategic measures
aligned to the Company’s long-term
strategy, which may include, but are not
limited to, cash generation, relative TSR,
cultural and environmental metrics.
Subject to the Committee’s discretion to
override formulaic outturns, awards will
vest at 25% for threshold performance,
increasing to 100% formaximum
performance.
HMRC qualifying all-employee scheme
HMRC qualifying all-employee share
schemes are to encourage employees to
take a stake in the business, which aligns
their interest with that of shareholders.
Executive Directors are eligible to participate in all-employee schemes onthe same basis as other
qualifying employees.
Maximum is subject to limits in the
applicable tax legislation.
None, in line with usual practice.
Remuneration Committee report continued
DIRECTORS’ FUTURE REMUNERATION POLICY CONTINUED
Financial statementsGovernance Other informationStrategic report126 – Persimmon Plc Annual Report 2025
Share ownership guidelines
In-service requirement
During employment, Executive Directors are required to acquire and retain shares with a value equal to 200%
ofbase salary (or, if higher, their normal annual PSP award level), with an expectation that a holding with a value
equal to 200% of salary will be achieved within five years of appointment. Progress towards the guideline will be
reviewed regularly. Executive Directors will be required to retain all shares acquired under the PSP and deferred
bonus awards, on a net of tax basis, until the shareholding guideline is met, unless in exceptional circumstances
the Committee exercises discretion to vary this requirement. Shares subject to awards which are not (or are no
longer) subject to performance conditions will count towards the requirement on a net of assumed tax basis.
Post-employment requirement
Following employment, Executive Directors are required to retain for a period of two years such number of shares
as they were required to acquire and retain during employment (or, if fewer, the number of shares they held at
thedate of cessation of employment). Shares which the Executive Director purchases or acquires pursuant to the
Company’s SAYE scheme will not be subject to any post-employment holding requirement. The Committee retains
discretion to vary this requirement in exceptional circumstances.
Recovery provisions (malus and clawback)
Recovery provisions may be applied in the event of the following:
·
a material misstatement of any Group member’s financial results;
·
gross misconduct on the part of the participant which affects substantially the financial performance
orreputation of a Group member;
·
an error in assessing a performance condition;
·
a material failure of risk management;
·
serious reputational damage to any Group member;
·
serious misconduct or material error on the part of the participant;
·
a material corporate failure;
·
a failure of acceptable health and safety standards, which may include a fatality; or
·
any other circumstances considered to be similar in their nature or effect to those set out above.
The recovery provisions may be applied in the case of the annual bonus for three years from the date on which
theamount of the bonus is determined and, in the case of PSP awards, until the fifth anniversary of the grant date.
The Committee considers these time horizons appropriate on the basis that:
·
it aligns with our annual bonus deferral period and the combined performance and holding period under the PSP;
·
it provides sufficient time for any potential circumstances to arise; and
·
it aligns with typical market practice.
Operation of share plans
The Committee may amend the terms of awards and options under its share plans in accordance with the plan
rules in the event of a variation of the Company’s share capital or a demerger, special dividend or other similar
event or otherwise in accordance with the terms of the plans. The Committee will operate any such plan in
accordance with its rules. Share awards granted under any such plan may be settled (in whole or in part) in cash,
although the Committee would only do so where the particular circumstances made it appropriate to do so – for
example, where there is a regulatory restriction on the delivery of shares.
Choice of performance conditions
Annual bonus conditions Rationale for selection and how performance targets are set
Profit before tax and
cash generation
Customer satisfaction,
quality, and/or other
non-financial, strategic,
or personal measure
Aligned with the Company’s strategy to deliver high-quality growth and return cash
toshareholders. These are important factors in ensuring overall business performance,
sustainability and reputation. Cash generation is critical over both the short and longer
term and therefore it is included in both the annual bonus and PSP.
Performance measures and targets are reviewed annually by the Committee to ensure
that they take into consideration the Company’s strategy and the outlook for the
Company over the medium term and are appropriate from a risk perspective.
PSP Rationale for selection and how performance targets are set
Relative TSR
Earnings per share
Cash generation
(subject to return on
capital employed
underpin)
A cultural metric
and/or
environmental
metrics
Performance conditions for the PSP will be determined by the Committee and aligned with
theCompany’s strategy. The rationale for the proposed performance conditions is as follows.
Relative TSR: Provides a means of comparing the Company’s performance with that of
peers. Aligns the rewards received by Executives with the returns received by shareholders.
Ensures rewards are linked to outperformance of peer companies. Aligned with market
practice in wider FTSE 100 and sector peers.
Earnings per share: EPS metric is aligned to our growth ambitions, which is a key
strategic aim, in addition to being a focus for our shareholders.
Cash generation: Ensures generation of cash to fund returns to shareholders is the
result of long-term sustainable financial performance which is a core element of the
strategy. Return on capital employed underpin ensures that returns to shareholders
arethe result of long-term sustainable financial performance.
Cultural and environmental metrics: Support our future success and reflect
theimportance to the Group of environmental considerations.
The Committee retains the right to adjust or set different performance measures in appropriate circumstances
(suchas, but not limited to, a change in strategy, a material acquisition and/or a divestment of a Group business
or a change in prevailing market conditions), which cause the Committee to determine that the measures are no
longer appropriate and that amendment is required so that they achieve their original purpose.
Differences between the Executive Directors’ and general
employees’ remuneration policy
Performance related pay makes up a significantly higher proportion of remuneration for the Executive Directors
and senior employees than for employees generally, reflecting the role of these individuals in managing the
business to achieve the Company’s strategic objectives. The Committee considers that the emphasis on performance
related pay for Executive Directors and senior employees closely aligns the Directors’ interests with those of
shareholders and helps to deliver excellent long-term Company performance. All employees are able to
participate in share ownership through the SAYE which is operated on an annual basis.
Persimmon Plc Annual Report 2025 – 127Financial statementsGovernance Other informationStrategic report
Remuneration Committee report continued
DIRECTORS’ FUTURE REMUNERATION POLICY CONTINUED
Non-Executive Directors
Purpose How it operates Maximum payable Performance framework
Fees
Fees are the principal element ofNon-Executive
Directors’ remuneration and set at a level
appropriate to attract Non-Executive
Directors with a broad range of skills and
experience to complement theBoard.
Non-Executive Directors with diverse skills
and experience will assist the Board when
setting the Company’s strategy and
overseeing its successful implementation.
Benefits relevant to the role
mayalsobeprovided.
Fees for the Chair of the Board are determined by the Committee and fees forother Non-Executive Directors are determined
by the Board as a whole. They are set at levels, commensurate with the individual’s duties and responsibilities for acompany
of our size and complexity.
Fees are reviewed annually with any increases normally taking effect from 1July.
When reviewing fees, consideration is given to market conditions, the size of the business and any increases awarded
to the Group’s salaried employees.
Non-Executive Directors do not receive bonus, pension or salary supplement payments or performance based share
scheme awards, but may be paid fees inshares (which may include a non-performance based nil or nominal cost
award over Persimmon shares, which may incorporate a right to ’dividend equivalents’ over the award’svesting
period). Benefits maybeprovided in connection with theundertaking by a Non-Executive Director of their duties.
Reimbursed expenses may include a gross-up to reflect any tax or social security due in respect of the reimbursement.
Increases to Non-Executive Directors’ fees will be determined
having regard to increases applied to the Group’s salaried employees
(in percentage terms), although fee increases maybe awarded above
this level in appropriate circumstances including (but not limited to):
where there has been a change inmarket practice; where there has
been a change in the size or complexity of the business; where there
has been an increase in the time commitment required for therole.
Additional fees are payable to Non-Executive Directors for
extraresponsibilities, such as chairing a Board committee,
holdingthe office of Senior Independent Director, or the office
ofWorkforceEngagement Non-Executive Director, orany
otheradditional responsibilities.
N/A
Recruitment and promotion policy
Ongoing remuneration
The Committee’s approach to recruitment remuneration is to pay no more than is necessary to attract candidates
with the appropriate skills for the housebuilding industry. The Committee retains discretion to include other elements
of remuneration which are not included in the provisions of the 2026 Policy set out above should business needs
require. However, this discretion is subject to the following principles and limitations, and the commercial rationale
for taking such action will be disclosed inthefollowing Annual Report on Remuneration.
·
In general our policy is to set salaries based on the market rate. In certain circumstances the salary for anew
Executive Director may be set below the normal market rate, with increases over such period as the Committee
determines as the Director gains experience in their new role.
·
Pension/salary supplement benefits will be provided in line with the provisions of the 2026 Policy set out above.
·
The variable remuneration that may be awarded will be subject to the applicable limit set out below.
·
Without prejudice to the ability to offer additional cash and/or share-based elements to take account of
remuneration relinquished from a former engagement as discussed below, the discretion will not be used to make
non-performance related incentive payments.
Examples of the circumstances in which these other elements may be provided include:
·
an interim appointment being made to fill an Executive Director role on a short-term basis;
·
if exceptional circumstances require that the Chair of the Board or a Non-Executive Director takes on an
executive function on a short-term basis; and
·
if an Executive Director is recruited at a time in the year when it would be inappropriate to provide a bonus or
aPSP award for that year as there would not be sufficient time to assess performance, subject to the applicable
limit on variable remuneration set out below, the quantum in respect of the months employed during the year
may be transferred to the subsequent year so that reward is provided on a fair and appropriate basis.
The Committee may alter the performance measures and vesting/deferral/holding period of annual bonus
andPSP awards to take account of the circumstances of the recruitment.
The maximum level of variable remuneration which may be granted to a new Executive Director on appointment
(excluding any award to take account of remuneration relinquished from a former engagement) will be 475% of
salary and, for a new Chief Executive, 500% of salary.
As described in the policy tables above, it may also be necessary to offer relocation benefits for external
andinternal appointments.
Buy-out awards
The Committee may offer additional cash and/or share-based elements at recruitment when it considers these to
be in the best interests of the Company (and therefore shareholders) to take account of remuneration relinquished
from a former engagement and would take account of the nature, time horizons and performance requirements
attaching to that remuneration. These awards will ordinarily be granted on the basis that they are subject to
forfeiture or ‘clawback’ in the event of departure within 12months of joining the Company, although the
Committee will retain discretion to not apply forfeiture or clawback in appropriate circumstances.
Internal appointments
For an internal Executive Director appointment, any variable pay element awarded in respect of the prior role will
be allowed to pay out according to its terms.
Non-Executive Director appointments
The remuneration package for a newly appointed Non-Executive Director would be in line with the structure set out
inthe policy table for Non-Executive Directors.
Service contracts
The Company’s policy is for service contracts with Executive Directors to have no more than a 12-month notice period.
The Chair of the Board and the Non-Executive Directors are not employees, they have letters of appointment
whichset out their duties and responsibilities; they do not have service contracts.
The Chair of the Board’s and the Non-Executive Directors’ letters of appointment are effective from their date
ofappointment. Their appointment is initially for a three-year term but is subject to re-election at each AGM
andtheir appointment may be terminated on three months’ notice for the Chair and one month’snotice for the
Non-Executive Directors.
Financial statementsGovernance Other informationStrategic report128 – Persimmon Plc Annual Report 2025
Policy on payment for loss ofoffice
Payments in lieu of notice
The Company retains the right to terminate each Executive Director’s service agreement by making apayment in
lieu of some or all of the notice period. Any such payment would consist of base salary andmayalso include benefits
(including pension or salary supplement contributions) in respect of theunexpired notice period for termination.
Annual bonus
Any payment to an Executive Director on termination in respect of annual bonus will be determined by the
Committee taking into account the circumstances of the termination. Any payment will be pro-rated to reflect the
proportion of the bonus year worked and subject to performance achieved. Payments will ordinarily only be made
at the usual time (although the Committee retains discretion to make payments early in appropriate circumstances).
The Committee retains discretion to pay the whole of the bonus for the year of departure and/or the previous year
in cash but will only do so in exceptional circumstances.
Entitlements under the Company’s share plans will be treated in accordance with the plan rules in the event of
cessation of employment, as follows.
Plan Treatment
PSP Cessation during the performance period.
In the event of cessation during the performance period, an award will ordinarily lapse.
However, in ‘good leaver’ circumstances (including cessation due to death, ill-health, injury,
disability or any other reason at the discretion of the Committee) awards may be retained. Retained
awards will ordinarily vest subject to the satisfaction of the performance conditions and a reduction
to reflect the proportion of the performance period that has elapsed. Retained awards which
vest will be released on the originally anticipated timescale or, at the discretion of the Committee,
at the later of the end of the performance period and two years following the cessation of employment.
The Committee has discretion to vest and release the awards earlier, and to assess the
performance conditions accordingly, and not to apply the time based reduction.
Cessation during the holding period.
In the event of cessation during the holding period, the award may be retained (other than in the
case of summary dismissal) and will be released at the ordinary release date to the extent the
performance condition was met (although the Committee has discretion to release the award earlier).
Deferred
Bonus Plan
In the event of cessation before vesting, an award will ordinarily lapse.
However, if a participant leaves as a result of death, ill-health, injury, disability or any other
reason at the discretion of the Committee, the award will be retained and will vest on the
originally anticipated timescale or, at the discretion of the Committee, two years post-cessation
of employment. The Committee also has discretion to vest the award at the date of cessation
inthe event of death or in other compassionate circumstances.
SAYE SAYE options will vest and become exercisable in the event of cessation in line with the plan rules
and applicable legislation, which do not provide for any discretion.
In determining whether an Executive Director is a good leaver’ and therefore should receive an annual bonus or
whether to exercise discretion to treat an Executive Director as a ‘good leaver’ for the purposes of any subsisting
awards under the Deferred Bonus Plan or PSP, the Committee will have regard to a range of factors, including the
circumstances of the termination, the Executive Director’s length of service, performance and behaviour in role,
overall business performance and, where relevant, contribution to anorderly succession.
The Committee reserves the right to make any other payments in connection with an Executive Director’s cessation
of office or employment where the payments are made in good faith in discharge of an existing legal obligation
(or by way of damages for breach of such an obligation) or by way of settlement of any claim arising in connection
with the cessation of a Director’s office or employment. Any such payments may include but are not limited to
paying any fees for outplacement assistance and/or the Director’s legal and/or professional advice fees in
connection with their cessation of office or employment and/or payments inrespect of accrued but untaken
holiday. In appropriate circumstances, the Committee may agree that certain benefits (such as medical insurance)
may be continued for a reasonable period following termination of employment.
Change of control
The rules of the Company’s share schemes provide for early exercise of awards on a takeover or change of
control. Entitlements under the Company’s share plans will be treated in accordance with the plan rules in the
event of change of control, which provide as follows.
Plan Treatment
PSP Unvested PSP awards will vest in the event of a change of control to the extent determined by the
Committee taking into account the extent to which the performance condition has been satisfied
and the proportion of the performance period that has elapsed (although the Committee has
discretion to waive this time based reduction).
Vested PSP awards which are in a holding period will be released in the event of a change of
control to the extent determined by reference to the satisfaction of the performance condition.
Deferred
Bonus Plan
Deferred Bonus Plan awards will vest in the event of a change of control.
SAYE SAYE options will vest and become exercisable in the event of a change of control in line with the
plan rules and applicable legislation, which do not provide for any discretion.
Legacy arrangements
The Committee retains discretion to make any remuneration payment or payment for loss of office
(includingexercising any discretion available to it in respect of any such payment) outside the 2026 Policy:
·
where the terms of the payment were agreed before the 2026 Policy came into effect, provided in the case of
any payment whose terms were agreed after the Company’s 2017 AGM and before the 2026 Policy becomes
effective, the remuneration payment or payment for loss of office was permitted under theCompany’s relevant
former Directors’ Remuneration Policy; or
·
where the terms of the payment were agreed at a time when the relevant individual was not a Director
oftheCompany and, in the opinion of the Committee, the payment was not in consideration of the individual
becoming a Director of the Company.
For these purposes, ‘payment’ includes the satisfaction of awards of variable remuneration and, in relation
toanaward over shares, the terms of the payment are agreed no later than the time the award is granted.
Persimmon Plc Annual Report 2025 – 129Financial statementsGovernance Other informationStrategic report
For the purpose of these charts, the following assumptions have been made.
·
Fixed remuneration comprises base salary, pension and other benefits.
·
Base salary levels are those applying on 1 January 2026.
·
Benefit levels are those applying as at 1 January 2026.
·
Minimum performance reflects fixed remuneration as above, and assumes no payment under the annual bonus
and no vesting is achieved under the PSP.
·
Expected performance reflects fixed remuneration above, and assumes 50% of annual bonus is earned
(100%of base salary for the Group Chief Executive and 87.5% of base salary for the Chief Financial Officer)
and 50% of the PSP (100% of base salary for each of the Group Chief Executive and Chief Financial Officer)vests.
·
Maximum performance reflects fixed remuneration as above, and assumes full bonus pay out (200% of base
salary for the Group Chief Executive and 175% of base salary for the Chief Financial Officer) and full vesting
under the PSP (200% of base salary for each of the Group Chief Executive and Chief Financial Officer).
·
The final illustration is based on the same assumptions as the maximum performance illustration,
butalsoassumes for the purposes of the PSP that share price increases by 50%.
Statement of consideration of shareholder views
The Committee consults with major shareholders and their representative bodies on remuneration matters,
particularly if any material changes are proposed to the Remuneration Policy. When determining the 2026
Policy,the Remuneration Committee consulted with the Company’s major shareholders representing 52.6%
oftheshare register, as well as leading proxy voting service providers, and we are grateful for stakeholders’
engagement with us.
There was general support for the 2026 Policy with recognition of the Remuneration Committee’s
determinationtodeliver best practice. The links to our five key priorities, with appropriate balance
betweenfinancial and non-financial metrics, were well received.
Statement of consideration of employment conditions elsewhere
intheGroup
In accordance with the UK Corporate Governance Code, the Committee reviews pay and employment conditions
of the wider workforce, and takes these into account when reviewing and determining remunerationof the
Executive Directors.
Whilst the Committee does not directly consult with the wider workforce when determining the remuneration
oftheExecutive Directors, it engages with the Employee Engagement Panel, to whom it presents its approach
toExecutive remuneration and seeks their feedback.
The Company is also a Living Wage Foundation accredited employer, paying the Real Living Wage to our
employees, and has established (and regularly reviews) a remuneration dashboard of Group-wide workforce pay
statistics and trends. Further information on wider workforce remuneration and our approach to engagement can
be found on page 138. These approaches enable the Committee to better know and understand the Group’s
workforce, to ensure thatall remuneration decisions are made in context.
£2.5m
£1.7m
£0.9m
£1.7m
£1.7m
£0.9m
£0.8m
£0.8m
£0.9m£0.9m
£0.9m
£2.5m
£4.3m
£5.1m
£1.6m
£0.8m
£0.6m
£1.1m
£0.8m
£0.6m
£0.5m
£0.4m
£0.6m£0.6m
£0.6m
£1.5m
£2.5m
£3.0m
Chief Executive Officer
Chief Financial Officer
Minimum
Minimum
On-target
On-target
Maximum
Maximum
Maximum with 50% share
price appreciation
Maximum with 50% share
price appreciation
DIRECTORS’ FUTURE REMUNERATION POLICY CONTINUED
Key Element Minimum performance On-target performance Maximum performance
Maximum performance with
50%share price growth
Fixed
remuneration
2026 base salary,
benefits and pension
2026 base salary,
benefits and pension
2026 base salary,
benefits and pension
2026 base salary,
benefitsand pension
Annual
bonus
1,2
None 50% of maximum
opportunity
100% of maximum
opportunity
100% of maximum
opportunity
Performance
Share Plan
(PSP)
2,3
None 50% of maximum
opportunity
100% of maximum
opportunity
100% of maximum
opportunity plus 50%
share price growth
1. Maximum bonus opportunity is 200% of base salary for the CEO and 150% of base salary for the CFO.
2. Dividend accrual on deferred remuneration has been excluded from all four scenarios; share price movement has been excluded from
the minimum, target and maximum scenarios.
3. Maximum PSP opportunity is 200% of base salary for the CEO and 200% of base salary for the CFO.
Remuneration Committee report continued
External appointments
The Directors recognise that external appointments can broaden an individual’s skills and experience. If an Executive
Director wishes to take up an external appointment, they must first seek approval from the Chair of the Board.
Illustrations of application of 2026 Policy
The following charts illustrate the remuneration packages of the Group Chief Executive Officer and Chief Financial
Officer for the year ending 31 December 2026 under the 2026 Policy for various indicative levels of performance.
Financial statementsGovernance Other informationStrategic report130 – Persimmon Plc Annual Report 2025
ANNUAL REPORT ON REMUNERATION
Role of the Remuneration Committee
The role of the Committee is set out in its terms of reference, which is reviewed annually and were last reviewed in
December 2025. These can be found on our website at www.persimmonhomes.com/corporate. The Committee
meets on at least three occasions a year and otherwise as required. In 2025 the Committee had four scheduled
meetings. Additional meetings were held as necessary. The attendance at meetings can be located on page 118.
The Committee determines the remuneration policy for the Group’s Chair, Executive Directors, and the Senior
Executive Group, which for 2025 consisted of the UK MD, Deputy UK MD, Regional Chairs, the Group Transformation
and Land Strategy Director, Chief Customer Experience Officer, Group Strategy and Regulatory Director, the
Chief Human Resources Officer and the Company Secretary. Membership of this Group is kept under review to
ensure it aligns to the organisational structure and comprises the senior management roles. This is a responsibility
which has been delegated from the Board. The policies and practices are designed to support strategy and
promote the long-term sustainable success of the Group. When setting and implementing the Policy for Executive
Directors, the Committee has reviewed and taken into account workforce related policies and the alignment of
incentives and rewards with culture. The Committee carefully considered the Group’s strategy to increase customer
focus and improve build quality and has aligned the variable remuneration metrics to meet this. Further information
regarding the members of the Committee, including their biographies, can be located on pages 86 and 87.
TheCommittee reviews its effectiveness each year. Further information can be located on pages 98 to 100.
Internal attendees to Committee meetings consisted of the Group Chief Executive, Chief Human Resource Officer
and the Group Head of Reward. These attendees provided important information to the Committee and were not
involved in any decisions relating to their own remuneration.
What the Committee has focused on during the year
Key areas of focus Remuneration Committee activities in 2025
Directors'
Remuneration
Policy
·
Undertook a review of the Directors' Remuneration Policy and agreed minor changes.
·
Engaged with shareholders in advance of approval for a new Policy being sought at the
2026 AGM.
Senior
Management
remuneration
·
Agreed the remuneration framework for the Executive Directors.
·
Reviewed the policy and agreed the remuneration framework for the Senior Executive Group.
·
Considered the wider workforce and any impact on and alignment of executive pay.
Annual bonus
and PSP awards
·
Approved the 2024 bonus and 2022 PSP outturns.
·
Approved the level of awards made to the Executive Directors, the Senior Executive Group
and to other senior managers in the Group.
·
Agreed the performance conditions and targets for the 2025 annual bonus.
·
Agreed the performance conditions and targets for the 2025 PSP awards made to Executive
Directors and senior management. Discussed and approved the introduction of an EPS measure.
Key areas of focus Remuneration Committee activities in 2025
Governance
and
engagement
·
Remuneration Committee Chair attended a meeting of the Employee Engagement Panel to
discuss executive remuneration and alignment with broader workforce reward.
·
Reviewed the Committee’s terms of reference.
·
Confirmed the continuing independent and effectiveness of the remuneration consultants.
·
Considered and approved the Annual Report on Remuneration.
Workforce
remuneration
·
Noted salary increases and pay practices for employees to ensure that reward at a senior
level is aligned appropriately with the experience of the broader workforce in terms of pay
and benefits.
·
Reviewed the HR dashboard which sets out key workforce data and considered the impact
on decision relating to Executive Directors and the Senior Executive Group.
What the Committee is focusing on for 2026
Key areas of focus Remuneration Committee activities in 2026
Executive
Directors and
Senior
Management
remuneration
·
Agree the remuneration framework for the Executive Directors and Senior Executive Group.
·
Take note of reward decisions for the wider workforce and consider any impact on and
alignment of executive pay.
Annual bonus
·
Agree performance conditions for 2026 awards.
PSP awards
·
Agree performance conditions for 2026 PSP awards.
·
Agree the level of awards made to the Executive Directors, the Senior Executive Group and
to other senior managers in the Group.
Advisors
The Committee sought advice during the year on remuneration matters in relation to market and best practice.
Theadvice was sought from Deloitte LLP, the Group’s independent remuneration consultants. Deloitte was appointed
by the Remuneration Committee in 2016 and was selected due to expertise in executive remuneration. During the
year Deloitte LLP also provided advice on remuneration disclosure and share plan matters to the Group, and
provided support and advice to the Group in relation to transfer pricing services. Deloitte LLP is not connected to
any Group company or individual Directors.
The Committee considers that the advice provided by Deloitte as professional remuneration consultants was
appropriate, objective and independent. The advice provided by Deloitte did not affect the judgements made
bythe Committee, which remained independent at all times. Deloitte is a founding member of the Remuneration
Consultants Group and adheres to its Code of Conduct in relation to executive remuneration consulting in the UK.
The amount of fees the Group paid to Deloitte for the services provided to the Remuneration Committee in 2025
was £55,367, charged on a time spent basis.
Persimmon Plc Annual Report 2025 – 131Financial statementsGovernance Other informationStrategic report
2025 Directors’ Remuneration Report – audited
The auditor is required to report on the following information up to and including the Statement of Directors’ shareholding requirements and share interests.
Single total figure of remuneration for the year ended 31 December 2025 (Audited)
The figures set out in the tables below are the actual amounts of salary or fees earned in the year to 31 December 2025.
Executive remuneration (Fixed)
Fixed remuneration
Salary Benefits
Salary supplement in lieu of pension/
Employer pension contribution Total fixed remuneration
Executive
2025
£
2024
£
2025
£
2024
£
2025
£
2024
£
2025
£
2024
£
D Finch 819,806 795,850 40,032 41,335 73,782 71,626 933,620 908,811
A Duxbury
1
537,950 285,382 11 , 4 5 2 5,052 48,416 25,685 597,818 316,119
Total 1,357,756 1,081,232 51,484 46,387 122,198 9 7, 311 1,531,438 1,224,930
Executive remuneration (Variable)
Variable remuneration
Annual bonus
2
Value of long-term awards vesting Value of SAYE options vesting Value of buy-out awards Total variable remuneration
Executive
2025
£
2024
£
2025
£
2024
£
2025
£
2024
£
2025
£
2024
£
2025
£
2024
£
D Finch 1,230,498 1,412,544 944,633
3
208,108
4
— — — — 2,175,131 1,620,652
A Duxbury 605,583 381,673 — — — — 619,151
5
1,611,521
6
1,224,734 1,993,194
Total 1,836,081 1,794,217 944,633 208,108 — — 619,151 1,611,521 3,399,865 3,613,846
Total
Executive
2025
£
2024
£
D Finch 3,108,751 2,529,463
A Duxbury 1,822,552 2,309,313
Total 4,931,303 4,838,776
1. 2024 figures are from 17 June, the date Andrew Duxbury joined Persimmon.
2. Bonus payable for the financial year. Executive Directors are required to defer 50% of any bonus earned into Persimmon Plc shares which will vest after three years, subject to continued employment. Further information is set out on pages 133 and 134.
3. Dean Finch was granted a PSP award in 2023 which vested by reference to performance over the three years ending 31 December 2025. Further details in relation to the award, including the basis on which the value in the table above is calculated, are set out on page 134.
4. In the 2024 annual report the value of long-term awards vesting for Dean Finch was calculated by reference to the average share price over the final quarter of 2025 (£13.96). In this report, and in line with the reporting regulations, that value has been re-calculated by reference
to the share price on the date of vesting of 11 March 2025 (£12.35).
5. The 2025 buy-out awards for Andrew Duxbury reflect awards which remained subject to the satisfaction of performance conditions on joining and which vested by reference to a performance period ending in 2025. Further details in relation to the awards, including the basis on
which the value in the table above is calculated, are set out on page 134.
6. The 2024 buy-out awards for Andrew Duxbury reflect the value of awards granted to him in respect of remuneration forfeited when he left his previous employer as detailed in the 2024 Annual Report and Accounts.
(a) For the period 1 July 2023 to 31 December 2023 he has received a bonus buy-out calculated by reference to the vesting of Galliford Try’s bonus for the same period and a maximum award of £201,750 (being 50% of his salary at Galliford Try). Based on the vesting level
disclosed in the Galliford Try Annual Report and Accounts this resulted in a bonus buy-out for this period of £188,435. This buy-out bonus will be paid half in cash and half in shares deferred for three years.
(b) For the period from 1 January until 17 June he has received a bonus buy-out based on up to 100% of £403,500 (Andrew’s salary and maximum bonus at Galliford Try), pro-rated for the period. This payment has been determined by reference to Persimmon performance
conditions for the 2024 bonus and amounts to £164,366. This bonus buy-out was paid half in cash and half in shares deferred for three years.
(c) In accordance with the regulations the value of certain share awards granted to Andrew in respect of share awards that he forfeited when he left his previous employer. These amounted to £1,258,720 in aggregate.
The value of the buy-outs is included in the 2024 single total figure in line with the requirements of the regulations, notwithstanding that they relate to forfeited remuneration from the former employer in respect of a period of four years.
Remuneration Committee report continued
ANNUAL REPORT ON REMUNERATION CONTINUED
Financial statementsGovernance Other informationStrategic report132 – Persimmon Plc Annual Report 2025
Non-Executive remuneration (Audited)
As Non-Executive Directors only receive fees only this element is shown in the table below.
Fixed remuneration
Salaries and fees Total
Chairman
2025
4
£
2024
£
2025
£
2024
£
R Devlin 362,247 351,698 362,247 351,698
Non-Executive
A Aithal
1
69,979 69,979
P Bell
2
86,979 28,653 86,979 28,653
A Depledge 69,979 67,954 69,979 67,954
A Durbin 98,312 84,954 98,312 84,954
N Mills
3
28,653 84,954 28,653 84,954
C O’Shea 74,979 72,954 74,979 72,954
A Wyllie 69,979 67,954 69,979 67,954
Total 861,107 759,121 861,107 759,121
1. Anand Aithal was appointed to the Board on 1 January 2025 and fees are shown from this date.
2. Paula Bell was appointed to the Board on 1 September 2024 and 2024 fees are shown from this date.
3. Nigel Mills resigned from the Board on 1 May 2025 and 2025 fees are show to this date.
4. Non-Executive Director fees can vary based on whether additional duties are required e.g. to chair a Committee or perform the senior
independent role. A more detailed explanation of this can be found on page 142.
Additional information for single total figure remuneration table
Benefits
Benefits include car or car allowance, private medical scheme membership, life assurance benefits, income
protection scheme membership, professional subscriptions and phone costs. This is in line with other senior
employees across the Group.
Directors’ pension entitlements
Dean Finch received a salary supplement in lieu of pension, equal to 9% of his base salary. Andrew Duxbury
received a total employer pension contribution and salary supplement equal to 9% of his base salary.
Annual bonus 2025
Dean Finch was eligible to earn a bonus up to a maximum of 200% of salary in respect of 2025.
Andrew Duxbury was eligible to earn a bonus up to a maximum of 150% of salary for 2025.
We have set out below details of the performance measures and targets and the extent to which they were satisfied.
Our financial metrics (accounting for 60% of the total) reflect the strong underlying financial health of the Group.
Non-financial metrics (accounting for 40% of the bonus opportunity in total) are important to help the Group to
assess our activities in achieving our five key priorities. The non-financial KPIs help drive long-term shareholder
value and reflect our values of being customer focused, value driven and delivering excellence. For the customer
service and quality it is important to note that the scores start from zero each year meaning that the level of
attainment required is a challenging target to meet.
Measure Weighting
Threshold
(20%
achievement)
Target
(50%
achievement)
Maximum
(100%
achievement) Outturn
Extent bonus
measure met
(% of maximum
bonus)
PBT
1
40% £399.5m £431.9m £464.3m £445.6m 28.4
Pre-land cash generation
2
20% £509.9m £566.6m £623.2m £593.7m 14.8
Customer care 15 % See below
3
Met in part 14.3
Build quality 20% See below
4
Met in part 12.5
Health & safety 5% See below
5
Met in full 5.0
1. Profit before tax: Profit before tax (before exceptional items and goodwill impairment).
2. Pre-land cash generation: Pre-land cash generation (being net cash inflow before dividends, legacy building provision spend and net
land payments) with the outturn calculated as set out below.
Extent bonus measure met
(% of maximum bonus) (£m)
Cash at 31 December 2024: 258.6
Cash at 31 December 2025: 117 . 0
Decrease in cash: (141.6)
Add: Dividends paid: 192.1
Net land spend: 541.3
Fire safety spend: 61. 1
Less: Exceptional items* (59.2)
Total 593.7
* Exceptional items: FibreNest net sale receipt -£68.1m; Lone Star net payment +£8.9m.
3. Customer care: 10% of the customer measure was achieved by reference to the fraction of operating businesses in the Group rated as
4.15 and above, measured by the results of the HBF Customer Satisfaction Score. 27 of the 29 operating businesses achieved a score
of 4.15 or above. 5% of the customer measure was achieved by reference to the Group overall operating at the level required to attain
classification as a five-star builder by the HBF, the Group score is 4.30% so this target is achieved in full.
4. Build quality: 5% of the quality score is measured by the fraction of operating businesses in the Group achieving a CQR compliance
score of 90% or above. 23 of the 29 operating businesses achieved a score of 90% or above. 5% of the quality score is measured
bythe fraction of those operating businesses in the Group achieving a CQR build score of 4.15 or above. 20 of the 29 operating
businesses achieved a score of 90% or above. 10% of the quality score is based on the results of independent assessments carried out
on Persimmon sites by the Group’s warranty providers from 1/1/25 to 31/12/25. Targets were set for each warranty provider and the
scores weighted based on the proportion of inspections completed by each provider. Targets were set such that an improvement on
prior year was required for target performance, with the level of improvement required based on the warranty provider’s scoring
system. A summary of outturns is shown in the table below.
Provider % weighting
% of operating
companies
achieving
threshold but
below target
% of operating
companies
achieving target
or above
Outturn
(% of maximum
opportunity
available)
NHBC 88.9 14 41 42.9
Premier 10.2 14 67 7.5
LABC 0.9 0 50 0.5
5. Health and safety: Performance was assessed against a matrix encompassing a wide range of factors. Each factor was weighted
interms of materiality reflecting the impact of any infringement and improvement was required to achieve the target level.
Persimmon Plc Annual Report 2025 – 133Financial statementsGovernance Other informationStrategic report
Additional information for single total figure remuneration table
continued
Annual bonus 2025 continued
Half of the bonus earned by the Executive Directors is paid in cash with half deferred into shares for three years.
The amount deferred into shares is not subject to any further performance condition. The deferred share award will
ordinarily be subject to continued employment.
Taking account of the provisions in the 2024 Code, the Remuneration Committee reviewed incentive outcomes in
the context of overall business performance, individual performance and shareholder and workforce context, the
Committee was of the view that the bonus outcome was appropriate and there were no grounds for exercising its
discretion to amend the scorecard outcome.
Performance Share Plan awards vesting in respect of performance
in 2025 (Audited)
A PSP award was granted on 2 May 2023 to Dean Finch. The award was based on performance over the
three-year period ended on 31 December 2025.
The award vested at 61.6% and further information is set out below. The award remains subject to a further holding
period before it will be released.
The targets and performance against these targets are as follows:
Performance measure Weighting
Threshold
(25% vesting)
Target
(50% vesting)
Maximum
(100% vesting) Outturn
Extent PSP
measure met
(% of maximum)
Relative TSR
1
35% Median — Upper quartile
or above
Above
Median
19.2
Average pre-land cash
generation over the three
year performance period
2&3
35% £428.0 £503.0 £579.0 £458.9 12.4
Customer care
4
20% 75% — 80% Above 80% 20.0
Environmental (tonnes CO
2
e
per home completed)
5
10% 1.69 1.68 1.67 1.43 10.0
1. Compared to a peer Group of the UK’s largest listed house builders: Barratt Redrow plc; Bellway plc; Crest Nicholson Holdings plc;
Taylor Wimpey plc; The Berkeley Group Holdings plc; Vistry Group plc. Redrow were removed from the peer group as they de-listed
during the performance period due to their acquisition by Barratt Developments (now Barratt Redrow plc).
2. Net cash inflow before capital return and net land payments.
3. Award subject to an underpin based on the return on capital employed over the three years of the performance period assessed by the
Remuneration Committee at the time of vesting.
ROCE = annual underlying profit from operations/average capital employed where:
• annual underlying profit from operations = 12-month consolidated Group profit before tax, interest, goodwill impairment and
exceptional items;
• average capital employed = average of capital employed during the relevant calendar year; and
• capital employed = consolidated shareholders' funds, plus consolidated borrowings, less consolidated cash holdings.
The Committee reviewed the average ROCE over the three-year performance period and concluded it was in line with expectations.
Therefore, no adjustments have been made to formulaic outturn of the pre-land cash generation metric.
4. Customer care is based on the Group score as measured by the results of the HBF nine-month Customer Satisfaction Survey question
“Would you recommend Persimmon to a friend?” as measured in the period 1 January 2025 to 31 December 2025. The customer care
metric is subject to an underpin that the Group is a four-star builder in each of the three years of the performance period. This underpin
has been met.
5. Based on Scope 1 and 2 carbon emissions per home completed for the year ending 31 December 2025. The Committee disclosed on
page 131 of the 2023 Annual Report and Accounts that, at the end of the performance period, the reduction in carbon over the period
would be considered in the round, including looking at our absolute carbon reduction and progression towards our science-based
targets. The Committee confirmed that it would exercise its discretion, as appropriate, to ensure that vesting reflects the overall reduction
in carbon and progress made over the period, in addition to the reduction in intensity. The Group is ahead of our 2025 Science Based
Targets and the Committee determined this element of the award would vest in full.
In the single total figure of remuneration table, the value of these awards is calculated as set out below. As the share
price average for the final quarter was below the grant share price no value is attributable to share price growth.
Number of
shares subject
to award
Vesting
outturn
(%)
Vested
shares
Value of
shares
1
(£)
Dividend
equivalent
2
(£)
Total for single
total figure of
remuneration
(£)
D Finch 105,341 61.6 64,900 814,833 129,800 944,633
1. In accordance with the relevant regulations, the value of the purposes of the single total figure of remuneration table is calculated by
reference to the average share price over the final quarter of 2025 (£12.56).
2. In accordance with the rules of the PSP, each Executive Director is entitled to a further benefit by reference to dividends on their vested
shares. These will be calculated over the period ending at the end of the holding period and delivered in shares. The value in respect of
dividend equivalents over the period ended 31 December 2025 is included in the table above.
Operation of recovery provisions
In line with the new UK Corporate Governance Code requirements, the Committee confirms that there was no
application of the recovery provisions in the reporting period.
Savings-related share option scheme (‘SAYE’) (Audited)
The SAYE Scheme is an HMRC approved all-employee savings-related share option scheme. Invitations are
issued annually to all employees to apply for the grant of an option under the SAYE. There are no performance
conditions attached to options granted under the SAYE. No options were exercised in 2025.
CFO buy-out awards
As disclosed, in the 2024 Annual Report and Accounts, Andrew Duxbury received share buy-out awards to
replace remuneration forfeited when he left his previous role. In the single total figure of remuneration table,
thevalue of the award vesting is calculated as set out below.
Number of
shares subject
to award
Vested
shares
Value of
shares
(£)
Dividend
equivalent
3
(£)
Total for single
total figure of
remuneration
(£)
Long Term Incentive Plan FY 2023
(year of grant 2022)
1
4 2 , 111 40,131 446,056 48,157 494,213
Long Term Incentive Plan FY 2024
(year of grant 2023)
2
14,743 9,083 114,039 10,899 124,938
Remuneration Committee report continued
ANNUAL REPORT ON REMUNERATION CONTINUED
Financial statementsGovernance Other informationStrategic report134 – Persimmon Plc Annual Report 2025
1. The vesting of the buy-out award in respect of the FY 2023 LTIP award is included in the single total figure of remuneration table on
page 132 because it is no longer subject to performance conditions. Vesting was subject to the satisfaction of the performance conditions
applying to the Galliford Try FY 2023 LTIP awards. Based on the vesting level disclosed in the Galliford Try Annual Report and Accounts,
these performance conditions were met by 95.3%, so that the buy-out award vested in respect of 40,131 Persimmon shares. For the
purposes of the single total figure of remuneration table, the value is the number of vested Persimmon shares subject to the award,
multiplied by the share price of £11.12 (being the closing share price on 23 September 2025, the date of vesting of the award). As the
share price on the vesting date was below the grant share price no value is attributable to share price growth. The award is subject to a
two-year holding period.
2. The vesting of the buy-out award in respect of the FY 2024 LTIP award is included in the single total figure of remuneration table on
page 132 because vesting was subject to the satisfaction of the performance conditions applying to the 2023 Persimmon PSP awards.
Based on the vesting level disclosed of 61.6%, the buy-out award vested in respect of 9,083 Persimmon shares. For the purposes of the
single total figure of remuneration table, the value is the number of vested Persimmon shares subject to the award multiplied by the
average share price over the final quarter of 2025 (£12.56). As the share price average for the final quarter was below the grant share
price no value is attributable to share price growth. The award is subject to a two-year holding period.
3. In accordance with the PSP rules under which awards were granted, the awards are subject to a further benefit by reference to dividends
on the vested shares. These will be calculated over the period ending at the end of the holding period and delivered in shares. The value
in respect of dividend equivalents over the performance period of the award is included in the table above.
Payments for loss of office (Audited)
There were no payments for loss of office made in the year.
Payments for loss of office (Audited)
There were no payments to past Directors for the year ended 31 December 2025 where the total payment
totheformer Director exceeded the threshold set by the Group of £20,000.
Service contracts (Audited)
The Company’s policy is for service contracts is set out on page 128.
The Chair’s and the Non-Executive Directors’ letters of appointment are effective from their date ofappointment.
Their appointment is initially for a three-year term but is subject to re-election at each AGMandtheir appointment
may be terminated on three months’ notice for the Chair and one month’snoticefor the Non-Executive Directors.
Name Commencement date Unexpired term remaining as at 31 December 2025
D Finch 28 September 2020 Terminable on 12 months’ notice.
A Duxbury 17 June 2024 Terminable on 12 months’ notice.
R Devlin 1 June 2018 Terminable on three months’ notice and subject
toreappointment at the AGM each year.
A Aithal 1 January 2025 Terminable on one month’s notice and subject
toreappointment at the AGM each year.
P Bell 1 September 2024 Terminable on one month’s notice and subject
toreappointment at the AGM each year.
A Depledge 1 May 2023 Terminable on one month’s notice and subject
toreappointment at the AGM each year.
A Durbin 1 July 2020 Terminable on one month’s notice and subject
toreappointment at the AGM each year.
C O'Shea 1 May 2023 Terminable on one month’s notice and subject
toreappointment at the AGM each year.
A Wyllie 4 January 2021 Terminable on one month’s notice and subject
toreappointment at the AGM each year.
Performance Share Plan awards made during the year (Audited)
PSP awards were granted on 24 March 2025 to Dean Finch and to Andrew Duxbury.
Type
of award
Basis
of award
1
Threshold
level of vesting
Face value
of award (£)
Performance
period
2
Shares subject
to option
D Finch Nil-cost
option
Percentage of
salary – 200%
25% 1,615,222 01/01/2025
– 31/12/2027
135,040
A Duxbury Nil-cost
option
Percentage of
salary – 200%
25% 1,060,000 01/01/2025
– 31/12/2027
88,621
1. Awards were calculated based on the percentage of salary and the average of the closing share prices on each of the five dealing days
before the grant of the award (£11.96).
2. The awards will vest in 2028 based on the achievement of the performance conditions but are then subject to a further two-year holding
period before the shares can be released.
The award is subject to the performance conditions set out below.
Performance measure Weighting
Threshold
(25% vesting)
Target
(50% vesting)
Maximum
(100% vesting)
Relative TSR
1
23% Below
median
— Upper quartile
or above
Earnings per share (EPS)
2
23% 100.8p 112.0p 123.2p or above
Average pre-land cash generation over
thethree-year performance period
3&4
24% £619,903K £729,298K £838,639K
Customer care
5
20% Group HBF
score is 4.15
or above
Group HBF
score is 4.20
or above
Group HBF
score is 4.25
or above
Carbon reduction
6
10% 22,273 tonnes
CO
2
e from
operations
— 20,045 tonnes
CO
2
e or below
from operations
1. Compared to a peer group comprising those companies in the FTSE 51-100 (excluding financial services) together with the major
housebuilders that do not fall within this group at the date of grant. The housebuilders are Barratt Redrow plc, Bellway plc, Crest
Nicholson Holdings plc, Taylor Wimpey plc, The Berkeley Group Holdings plc and Vistry Group.
2. The EPS target is based on 2027 underlying EPS.
3. Net cash inflow before dividends, legacy building provision spend and net land payments.
4. A ROCE underpin has been maintained for the pre-land cash metric. This will be assessed by the Remuneration Committee at the time
ofvesting based on average ROCE over the performance period. ROCE = annual underlying profit from operations/average capital
employed where:
• annual underlying profit from operations = 12-month consolidated Group profit before tax, interest, goodwill impairment
andexceptional items;
• average capital employed = average of capital employed during the relevant financial year; and
• capital employed = consolidated shareholder funds, plus consolidated borrowings, less consolidated cash holdings.
5. Based on Group combined HBF score related to a five-star rating score. The Remuneration Committee reserves discretion to increase
the above scores should the HBF determine that a score higher than 4.20 is required to achieve five-star status.
6. Based on Scope 1 and 2 carbon emissions from Group operations for the year ending 31 December 2027, measured in tonnes
ofCO
2
efrom operations and determined consistently with the Group’s science-based targets.
Persimmon Plc Annual Report 2025 – 135Financial statementsGovernance Other informationStrategic report
Directors’ share option scheme interests (Audited)
Scheme
Total interests
outstanding at
31 December 2024
Granted
in year
Acquired
in year
1
Lapsed
in year
Exercise price/
market price at date
of award
Interests without
performance
conditions
Interests with
performance
conditions
Total interests
outstanding at
31 December 2025
Options vested
but unexercised
Latest
vesting
date
D Finch PSP 2020 10,520 — 10,520 — 2,411p — — — —
PSP 2021 7,021 — — — 2,953p 7,021 — 7,021 7,021
2
—
PSP 2022 64,653 — — 51, 723 2,310p 12,930 — 12,930 12,930
3
—
PSP 2023 105,341 — — — 1,276p — 105,341 105,341 Spring 2026
PSP 2024 120,351 — — — 1,303p — 120,351 120,351 Spring 2027
PSP 2025 — 135,040 — — 1,196p — 135,040 135,040 Spring 2028
2021 Deferred Bonus 30,583 — 30,583 — 2,192p — — — Spring 2025
2022 Deferred Bonus 42,796 — — — 1,270p 42,796 — 42,796 Spring 2026
2023 Deferred Bonus 48,787 — — — 1,304p 48,787 — 48,787 Spring 2027
2024 Deferred Bonus — 59,854 — — 1,180p 59,854 — 59,854 Spring 2028
A Duxbury Annual Bonus Plan (’DBP’) 13,909 — 13,909 — 1,361p — — — —
Annual Bonus Plan (’DBP’) 3,998 — — — 1,361p 3,998 — 3,998 Sep–26
Long Term Incentive Plan FY 2022 48,770 — — — 1,361p 48,770 — 48,770 48,770
4
—
Long Term Incentive Plan FY 2023 4 2 , 111 — — 1,980 1,361p 40,131 — 40,131 40,131
5
—
Long Term Incentive Plan FY 2024 14,743 — — — 1,361p — 14,753 14,743 Spring 2026
PSP 2024 73,376 — — — 1,445p — 73,376 73,376 Spring 2027
PSP 2025 — 88,621 — — 1,196p — 88,621 88,621 Spring 2028
2024 Deferred Bonus — 31, 122 — — 1,180p 31, 12 2 — 31,122 Spring 2028
1. Shares exercised during the year. In accordance with the Directors' Remuneration Policy, dividend equivalents accrued over the period up to release were added to the award on exercise.
2. Shares vested during 2024 and entered a two-year holding period. The shares will be released to the Executive Director at the end of the holding period.
3. Shares vested during 2025 and entered a two-year holding period. The shares will be released to the Executive Director at the end of the holding period.
4. Shares vested during 2024 and entered a two-year holding period. The shares will be released to the Executive Director at the end of the holding period.
5. Shares vested during 2025 and entered a two-year holding period. The shares will be released to the Executive Director at the end of the holding period.
All of the above represent share options and were granted for no financial consideration.
Remuneration Committee report continued
ANNUAL REPORT ON REMUNERATION CONTINUED
Financial statementsGovernance Other informationStrategic report136 – Persimmon Plc Annual Report 2025
The beneficial holdings at 31 December 2025 of the Directors in office at that point were 105,121 shares,
representing 0.03% of the Group’s issued share capital as at that date. There have been no changes in these
interests between 31 December 2025 and 8 March 2026.
The Committee has an agreed post-employment shareholding requirement, details of which are included in the
Directors’ Remuneration Policy on page 127. There are no share ownership requirements for the Chair and
Non-Executive Directors.
Total shareholder return
We have chosen to compare the Group’s total shareholder return performance with that of the FTSE 350, being
abroad index of the UK’s largest companies and with the largest UK listed house builders, being the Group’s peer
group. The graph shows a hypothetical £100 holding in the Group’s shares over ten years, relative to the FTSE 350.
Statement of Directors’ shareholding requirements and share
interests (Audited)
The share ownership requirements for the Executive Directors serving during the year and the share interests
oftheDirectors and of their connected persons in the ordinary share capital of the Group are as shown below.
Theshareholding requirements set out below.
Director
Shareholding
requirement
No. of shares
and share awards
that count towards
shareholding
requirement at
31 December 2025
Percentage of base
salary held at
31 December 2025
(including shares held
by connected persons
and shares net of
assumed tax for share
awards which are no
longer subject to
performance
conditions)
1&2
Requirement
met
2
Shareholding
at
31 December
2025
4
(or if earlier,
date of
leaving the
Board)
31 December
2024 (or if
later, date of
joining the
Board)
D Finch 4 times
salary
2
143,193 234% No 52,358 24,078
A Duxbury 4 times
salar y
2
83,907 209% No 18,176 10,157
Chair
R Devlin N/A — — — 32,575 32,575
Non-Executives
A Aithal N/A — — — 1,000 0
P Bell N/A — — — 0 0
A Depledge N/A — — — 0 0
A Durbin N/A — — — 0 0
N Mills
3
N/A — — — 716 716
C O’Shea N/A — — — — 0
A Wyllie N/A — — — 1,012 1, 012
Total 105,837 68,893
1. Calculated based on the closing price of £13.59 at 31 December 2025 and on base salary at 31 December 2025 (or if earlier date
ofleaving the Board).
2. The Committee expects that a holding with a value of equal to two times salary will be achieved within five years of appointment,
withthe balance of the requirement acquired within a period agreed with the Chair. This element of the requirement has been met.
3. N Mills resigned from the Board on 1 May 2025.
4. The beneficial holdings at 31 December 2025 of Directors in office at that point were 105,121 shares (excluding N Mills).
Persimmon Peer set FTSE 350
+34.3%
+7. 5 %
+122.1%
240
220
200
180
160
140
120
100
80
Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-26Jan-25
Persimmon Plc Annual Report 2025 – 137Financial statementsGovernance Other informationStrategic report
Group Chief Executive remuneration 2016 to 2025
Year Chief Executive
Single total figure
of remuneration
£
Annual bonus
paid against
maximum
opportunity
PSP/LTIP awards
vesting against
maximum
opportunity
2025 D Finch 3,108,751 1,230,498 61.6%
2024 D Finch 2,529,463 88.74% 20%
2023 D Finch 2,263,014 85.16% 14.3%
2022 D Finch 2,143,563 72.78% 58.72%
2 0 21 D Finch
1
2,578,902 92% —
2020 D Finch/D Jenkinson
2
658,212 — —
2019 D Jenkinson 672,998 — —
2018 J Fairburn 38,967,197 — 100%
2017 J Fairburn 45,739,514 95.7% 100%
2016 J Fairburn 2,123,692 97.3% —
1. The increase in the CEO single total figure of remuneration between 2020 and 2021 reflects: (1) that Executive Directors’ bonuses for
2020 were forgone; and (2) the inclusion in the 2021 single total figure of remuneration of a buy-out award granted to Dean Finch.
2. This is the total remuneration for Dave Jenkinson, who was Group Chief Executive until 20 September 2020, and remuneration for Dean
Finch from 28 September 2020, the date he became Group Chief Executive.
The wider workforce
When making decisions about reward for the Executive Directors and Senior Executive Group the Remuneration
Committee takes account of the reward principles across the Group. Fundamental to this are our beliefs that all
employees should be treated fairly, as evidenced by our status as an accredited Living Wage Employer, and that
all employees should have the opportunity to share in the success of the business as shown through extensive
participation in bonus, commission and share plans.
In 2025 a base pay increase of 3% was agreed. There were also a significant number of internal promotions
which resulted in pay increases, demonstrating the opportunities for career development and progression with
theGroup.
We also continue to invest in our wider employee population through training and development opportunities
andthrough the work being carried out on diversity and inclusion. We also continue to focus on supporting our
employees’ wellbeing through our Employee Assistance Programme, our mental health counsellors and other
initiatives such as our Persimmon communities. All of this together is aimed at improving the overall experience
ofbeing a Persimmon employee. Further information on this can be found on pages 25 to 27.
An overview of our Reward Policy for salaried employees and how this cascades down the business is shown below.
Executive
Directors
Senior Executive
Group
Senior
management Management
Salaried
employees
Competitive base salary ✓ ✓ ✓ ✓ ✓
Annual bonus ✓ ✓ ✓ ✓ ✓
PSP ✓ ✓ ✓ ✓ ✓*
All-employee share plan ✓ ✓ ✓ ✓ ✓
Pension ✓ ✓ ✓ ✓ ✓
Car/car allowance ✓ ✓ ✓ ✓ ✓*
Private health cover ✓ ✓ ✓ ✓ ✓*
* Dependent on role and/or job grade.
Employee engagement
The Committee Chair met with the Employee Engagement Panel during 2025 to explain how executive remuneration
aligns with wider Group pay policy. The Employee Engagement Panel outcomes are reported to the Board and
meetings are attended by the Workforce Non-Executive Director. The members of the Employee Engagement
Panel cascade messages more broadly to the workforce ensuring two-way engagement. The Committee tracks
and discusses a number of workforce related statistics via an HR dashboard of Group-wide workforce statistics
and trends. The Committee and Board are informed of the outcomes of Employee Engagement Surveys which
areundertaken annually. Further information on our interaction with the workforce can be located on page 27.
The Remuneration Policy for the workforce is given due consideration when determining the remuneration of the
Executive Directors.
Remuneration Committee report continued
ANNUAL REPORT ON REMUNERATION CONTINUED
Financial statementsGovernance Other informationStrategic report138 – Persimmon Plc Annual Report 2025
Pay ratios
The table below compares the single total figure of remuneration for the Group Chief Executive with that of
employees who are paid at the 25th percentile, 50th percentile and 75th percentile of the Group’s employee
population and also shows the total pay and benefits at quartile points.
Year Method
25th percentile
pay ratio
Median
pay ratio
75th percentile
pay ratio
2025 Option B 84:1 75:1 47:1
2024 Option B 66.1 59.1 40.1
2023 Option B 82:1 52:1 32:1
2022 Option B 75:1 57:1 37:1
2 0 21 Option B 99:1 60:1 45:1
2020
1
Option B 28:1 17:1 14:1
2019 Option B 23:1 20:1 15:1
1. The pay ratio for 2020 is based on the aggregate of the remuneration earned by Dave Jenkinson and Dean Finch for the period each
was CEO during 2020.
The median ratio for 2025 is 75. The Company considers that the median pay ratio for 2025 is consistent with
thepay, reward and progression policies for the Company’s UK employees taken as a whole (albeit that the total
remuneration pay ratio may increase going forward depending on the performance of the Company which will
impact the levels of bonus and PSP payable to Executive Directors).
The Company adopted ‘Option B’ from The Companies (Miscellaneous Reporting) Regulations 2018. The latest
available gender pay gap data (i.e. from April 2025) was used to identify the best equivalents in respect of each
year for three Group employees whose hourly rates of pay were at the 25th, 50th and 75th percentiles of all
Group employees. The Company adopted Option B because it was the most practical approach to total
calculation of these ratios taking into account the availability of data, and because it means that the data used to
calculate the Company’s gender pay gap and CEO ratios is applied on a consistent basis. The full time equivalent
total pay and benefits figures for the three employees at each percentile were determined with reference to the
relevant year ended 31 December. A small number of employees at either side of the quartile points identified
from the gender pay gap data were also considered, together with their corresponding full time equivalent total
pay and benefits figures to ensure that the employees identified at each of the three percentile points are
reasonably representative of each quartile. Adjustments were made in line with the regulations to ensure the data
is reasonably representative.
No components of pay have been omitted. The Committee understands that the three employees represent the
relevant percentiles, and each was remunerated in line with the Group remuneration policies.
The CEO pay is the single total figure of remuneration for the relevant year, as stated in the Group Chief Executive
remuneration 2016 to 2025 table on page 138.
The total salary, and pay and benefits of employees who are paid at the 25th percentile, 50th percentile and 75th
percentile is shown below:
Year CEO
25th percentile
pay ratio
Median
pay ratio
75th percentile
pay ratio
2025 total pay and benefits £3,108,751 £37,053 £41,426 £66,517
2025 salary £819,806 £29,435 £32,480 £49,517
2024 total pay and benefits £2,550,366 £38,539 £43,325 £63,730
2024 salary £795,850 £33,495 £36,638 £52,705
2023 total pay and benefits £2,252,464 £27,326 £43,373 £69,381
2023 salary £746,750 £25,183 £40,173 £48,000
2022 total pay and benefits £2,143,066 £28,644 £37,314 £58,147
2022 salary £746,750 £25,779 £33,120 £44,075
2021 total pay and benefits £2,578,902 £26,005 £43,306 £57,485
2021 salary £725,000 £21,178 £33,551 £46,000
2020 total pay and benefits £658,212 £23,748 £39,645 £47,828
2020 salary £561,842 £21,608 £36,297 £38,300
2019 total pay and benefits £672,998 £29,500 £33,409 £44,728
2019 salary £511,625 £26,667 £19,425 £27,726
Gender pay gap
At the measurement date of April 2025 the median Gender Pay Gap for the Group was 11.2% (2024: 21.3%).
Changes in the composition of our workforce and in particular an increase in the percentage of females promoted
and recruited into senior roles has accounted, in part, for the change. Whilst there is a higher proportion of men
working in the Group, the percentage of females has grown over the last five years, as has the number of females
in senior roles and in some of the more under-represented functions, such as commercial and land. We continue to
focus on attracting a more diverse workforce and retaining and developing the talent we have from under-represented
groups. The Group has set gender diversity targets, more information on our work in this area can be found on
page 27.
We introduced a quarterly equality, diversity and inclusion data dashboard from April 2024 to help track
progress and identify areas for improvement and focus. Further information on our equality, diversity & inclusion
strategy can be found on page27. Alongside internal enhancements to monitoring and oversight, evolving pay
transparency regulations are under review, and we welcome potential future enhancements.
Persimmon Plc Annual Report 2025 – 139Financial statementsGovernance Other informationStrategic report
Directors’ change in remuneration
Set out below is a comparison of the change in remuneration of each of the Company’s Directors from 2020 to 2025, with the change in remuneration of Persimmon Plc’s employees. As Persimmon Plc has a relatively small number of
employees, we have also chosen to compare the change in remuneration with the Group’s salaried employees (the same comparator group as we have used in previous years).
Salary/fees Bonus Benefits
2024/25 2023/24 2022/23 2021/22 2020/21 2024/25 2023/24 2022/23 2021/22 2020/21
1
2024/25 2023/24 2022/23 2021/22 2020/21
Average of Persimmon Plc’s
employees 5.4% 6% 3.7% 31.4% 5% 19.7% 47.8% -10.7% 96.3% 21 % -9.3% -10.3% 10.1% -8.2% 2%
Average of Group salaried
employees 4.2% 4.5% 6.1% 7.3% 5% 15.3% 24.9% 4.9% 18.7% 21 % -3.0% -13% 6.1% 1.9% 2%
D Finch
2
3% 7% 0% 3% 0% -13% 11 % 17% -19% N/A -3% -9% -3% 8% -7%
A Duxbury
3
3% -14% 23%
R Devlin 3% 7% 0% 10% 5% N/A N/A N/A N/A N/A N/A N/A N/A — —
P Bell
4
3% N/A N/A
A Depledge
5
3% 5% — — — N/A N/A N/A N/A N/A N/A N/A N/A — —
A Durbin
6
16% 4% 0% 9% 5% N/A N/A N/A N/A N/A N/A N/A N/A — —
C O’Shea
5
3% 12 % — — — N/A N/A N/A N/A N/A N/A N/A N/A — —
A Wyllie
7
3% 5% 0% 8% — N/A N/A N/A N/A N/A N/A N/A N/A — —
1. Executive Directors’ bonuses for 2020 were forgone such that the percentage change between 2020 and 2021 is not considered a meaningful comparison.
2. The 2020 remuneration for D Finch has been annualised for the purposes of the above table to enable a valid comparison.
3. The 2024 Persimmon remuneration for A Duxbury been annualised for the purposes of the above table to enable a valid comparison.
4. The 2024 remuneration for P Bell has been annualised for the purposes of the above table to enable a valid comparison.
5. The 2023 remuneration for A Depledge and C O’Shea has been annualised for the purposes of the above table to enable a valid comparison.
6. The 2025 change in remuneration for A Durbin reflects her appointment as Senior Independent Director from 1 May 2025.
7. The 2021 remuneration for A Wyllie has been annualised for the purposes of the above table to enable a valid comparison.
8. A Aithal joined the Board on 1 January 2025 and so is excluded from this table as there is no prior year comparator. N Mills resigned from the Board on 1 May 2025 and has been excluded from this table.
As noted above a 3% salary increase was agreed for the wider workforce in July 2025. There were also a number of promotional increases during the year. Due to timing issues the bonus comparison for employees is based on the
actual amount paid in 2025 versus the actual amount paid in the 2024 financial year.
Relative importance of spend on pay
Set out below is the amount spent on remuneration for all employees of the Group (including for Executive Directors) and the total amounts paid in distributions to shareholders over the year.
2025
£m
2024
£m
Difference
in spend
£m
Difference
as a percentage
Remuneration for all employees
1
278.9 257.7 20.8 8.1
Total dividend payments made 192.1 191. 8 0.3 0.2
1. Figures are taken from note 9 of the accounts relating to staff and employee costs except that employer social security costs and IFRS 2 Share-based Payment charges have been removed.
Remuneration Committee report continued
ANNUAL REPORT ON REMUNERATION CONTINUED
Financial statementsGovernance Other informationStrategic report140 – Persimmon Plc Annual Report 2025
Statement of voting at general meeting
The Directors’ Remuneration Policy, effective from 26 April 2023, was put to shareholders for approval at the
2023 AGM. The 2024 Annual Report on Remuneration was put to shareholders for approval at the 2025 AGM.
The voting at each AGM was conducted on a poll. The table below summarises the result of the poll votes on the
2023 Directors’ Remuneration Policy and the 2024 Annual Report on Remuneration.
Votes for % for Votes against % against Total votes cast Votes withheld
Approval of the Directors’
Remuneration Policy
– 26 April 2023
202,837,628 98.7 2,691,456 1.3 205,529,084 3,199,709
(representing
1.00% of the
issued share
capital)
Approval of the Annual
Report on Remuneration
– 25 April 2025
186,819,732 98.19 3,453,064 1. 81 190,272,796 78,053
(representing
0.02% of the
issued share
capital)
Statement of Remuneration Policy implementation 2026
A summary of the 2026 remuneration for each Executive Director is set out below:
Group Chief Executive pay Chief Financial Officer pay
·
Base salary of £832,000 (review date 1 July)
·
Pension salary supplement of 9% (in line with
thepension of salaried employees)
·
Benefits including life assurance, car allowance
andphone costs
·
Maximum annual bonus opportunity of 200%
ofbase salary
·
Maximum PSP award of 200% of base salary
·
Base salary £545,900 (review date 1 July)
·
Pension/salary supplement of 9% (in line with
thepension of the salaried employees)
·
Benefits including life assurance, car allowance
andphone costs
·
Maximum annual bonus opportunity of 150%
ofbasesalary
·
Maximum PSP award of 200% of base salary
Annual bonus
Each Executive Director will be eligible for consideration of a bonus in respect of 2026, with maximum
opportunities as referred to above. The majority of the bonus will continue to be based on financial metrics, being
profit before tax (30%) and cash generation (30%). As these financial targets are commercially sensitive they will
be disclosed in next year’s Remuneration Report. As we continue to improve our build quality and customer care,
we have applied an appropriate level of non-financial cultural and ESG metrics which are key to our future
success. Delivery of a stretching target level of performance will result in the Executive Director receiving 50%
ofthe maximum award. 50% of any bonus earned will be deferred into shares for three years.
In 2026 there will be three non-financial metrics: 15% of bonus will be based on customer care measures, 20%
will be based on quality, and 5% will be based on health and safety. The customer care metric will be based on
the strategy to retain our scores at the level required for a five-star rating based on the HBF Customer Satisfaction
Survey which incorporates a combined score based on four survey questions. The quality measure will be based
on the results of independent warranty provider inspections to drive continued improvement in build quality.
Thesescores reset to zero at the start of each year meaning that attainment of the targets remains stretching.
Health and safety will be based on performance assessed against a weighted health and safety index and will
support our strategic aim to move from compliance to excellence.
Performance Share Plan awards
A PSP award will be made in March to the Group Chief Executive and Chief Financial Officer equal to 200%
ofbase salary, with vesting subject to the performance conditions set out below.
The three-year performance period will run from 1 January 2026 to 31 December 2028. Awards will vest in 2029
subject to meeting the performance conditions, with a further two-year holding period before the shares can be
released to the Executive Director.
PSP performance metrics are aligned with the Company’s strategy to balance capital retained for investment in
thebusiness with returns to shareholders and future growth, and with relative TSR performance to link Executive
Directors’ reward to outperformance against the FTSE 51-100 (excluding financial services) together with the
major housebuilders if they do not fall within this group. As the business continues to evolve and grow, we have
retained a measure based on the HBF Customer Satisfaction Survey linked to the Company’s purpose to build
high-quality homes for our customers, and an environmental metric linked to reducing our carbon emissions.
Collectively, these are important factors in ensuring overall business performance, sustainability and reputation.
PSP performance metrics and targets – financial measures
Financial metrics are based on relative TSR (23% of the overall award), EPS (23% of the overall award) and cash
generation subject to a ROCE underpin (24% of the overall award).
Our TSR metric remains unchanged from 2025. The small number of comparator housebuilders means that using
the FTSE 51-100 in addition to sector peers provides a robust and relevant comparator group.
Our EPS metric remains unchanged from 2025. We believe that this is an important metric to align the awards
toour strategy for growth.
Persimmon Plc Annual Report 2025 – 141Financial statementsGovernance Other informationStrategic report
PSP performance metrics and targets – financial measures continued
We will continue to use a pre-land measure for cash generation. This is directly linked to strategy, encourages
optimisation of sales volumes and prices of homes and encourages good cost control. It is also a measure which
iseasily understood by our management teams and therefore has a strong line of sight for them as participants
inthe PSP. Details of the targets are shown below:
Performance measure Weighting
Threshold
(25% vesting)
Target
(50% vesting)
Maximum
(100% vesting)
Relative TSR
1
23%
Median
—
Upper quartile
or above
EPS
2
23%
117.3p 123.4p 129.6p
Average pre-land cash generation
3&4
over the
three-year performance period (£m)
24%
688.3 744.1 799.1
1. Compared to a peer group comprising those companies in the FTSE 51-100 (excluding financial services) together with the major
housebuilders that do not fall within this group at the date of grant. The housebuilders are Barratt Redrow plc, Taylor Wimpey plc,
VistryGroup plc, Bellway plc, The Berkeley Group plc and Crest Nicholson Holdings plc.
2. The EPS target is based on 2028 underlying EPS.
3. Net cash inflow before dividends, legacy building provision spend and net land payments.
4. A ROCE underpin has been maintained for the pre-land cash metric. This will be assessed by the Remuneration Committee at the time of
vesting based on average ROCE over the performance period. ROCE = annual underlying profit from operations/average capital, where:
• annual underlying profit from operations = 12-month consolidated Group profit before tax, interest, goodwill impairment and
exceptional items;
• average capital employed = average of capital employed during the relevant calendar year; and
• capital employed = consolidated shareholders' funds, plus consolidated borrowings, less consolidated cash holdings.
PSP performance metrics and targets – cultural and
environmentalmeasures
For the 2026 awards, we will assess the customer care measure by reference to the overall Group scores because
this aligns all participants with an improvement in Group performance. The target is aligned to achieving five-star
status under the HBF Customer Satisfaction Survey, based on the methodology first rolled out in 2025. The use of
a combined score from four questions ensures that this captures a broad measure of customer satisfaction and is a
critical part of our strategy. The Committee retains the discretion to amend the relevant target should the HBF
announce a change to the score required in order to be awarded five-star status in March 2029 (the relevant
measurement date). The carbon reduction targets align with our Scope 1 and 2 absolute carbon reduction
commitments and are based on the trajectory required to meet our 2030 commitment. Details are provided below:
Performance measure Weighting
Threshold
(25% vesting)
Target
(50% vesting)
Maximum
100% vesting)
Customer care
HBF five-star score 20%
Group HBF score is
4.21 —
Group HBF score is 4.26
or above
Environmental – Scope 1 and 2
carbon reduction 10%
20,864 tonnes CO
2
e
from operations —
18,778 tonnes CO
2
e or
below from operations
Discretion
The Remuneration Committee has discretion to override formulaic outcomes in relation to annual bonus awards
and PSP awards. In line with market practice this includes the ability to adjust for exceptional or unforeseen items
in order that performance is assessed on a fair and consistent basis. Any such exercise of discretion would be
disclosed in the subsequent Directors’ Remuneration Report.
Chair and NED fees
The Board as a whole determines the fees of the Non-Executive Directors, with the Non-Executive Directors being
recused from that discussion and decision. The Remuneration Committee determines the Chair’s fees. In line with
Executive Directors and the wider workforce the Non-Executive Director and Chair fees will typically be reviewed
with an effective increase date of 1 July. In July 2024 the Chair fee and the fee for other Non-Executive Directors
increased by 3%. Any increases to fees agreed in July 2025 are anticipated to be in line with or below those given
to the wider workforce.
The fees applicable from 1 July 2025 are set out below, together with a comparison to the fee up to 1 July 2024.
Fees from 1 July 2025 Fees to 1 July 2025
Chairman £367,600 £356,895
Non-Executive Director £71,000 £68,958
Senior Independent Director £17,000 £17,000
Audit & Risk Committee Chair £17,000 £17,000
Nomination Committee Chair £17,000 £17,000
Remuneration Committee Chair £17,000 £17,000
Workforce Engagement NED fee £10,000 £10,000
Annemarie Durbin
Chair of the Remuneration Committee
9 March 2026
ANNUAL REPORT ON REMUNERATION CONTINUED
Remuneration Committee report continued
Financial statementsGovernance Other informationStrategic report142 – Persimmon Plc Annual Report 2025
Statement of Directors’ responsibilities
In respect of the Annual Report and the financial statements
The current Directors are listed on pages 86 to 87 and
are responsible for preparing the Annual Report and
the Group and Parent Company financial statements in
accordance with applicable law and regulations. Such
law requires the preparation of the Group financial
statements in accordance with UK adopted International
Accounting Standards and the preparation of the
Parent Company financial statements in accordance
with UK-adopted International Accounting Standards
in conformity with the requirements of the Companies
Act 2006 as applied in accordance with section 408
of the Companies Act 2006.
Company law requires that Directors prepare Group
and Parent Company financial statements for each
financial year. However, the Directors must not
approve the financial statements unless they are
satisfied that they give a true and fair view of the state
of affairs of the Group and Parent Company and of
their profit or loss for that period. In preparing each of
the Group and Parent Company financial statements,
the Directors are required to:
·
select suitable accounting policies and then apply
them consistently;
·
make judgements and estimates that are reasonable
and prudent;
·
state whether for the Group financial statements
they have been prepared in accordance with UK
adopted International Accounting Standards, and
for the Parent Company financial statements that
they have been prepared in accordance with
UK-adopted International Accounting Standards in
conformity with the requirements of the Companies
Act 2006 as applied in accordance with section
408 of the Companies Act 2006; and
·
prepare the financial statements on the going
concern basis unless it is inappropriate to presume
that the Group and the Parent Company will
continue in business.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and
explain the Parent Company’s transactions and
disclose with reasonable accuracy at any time the
financial position of the Parent Company and enable
them to ensure that its financial statements comply with
the Companies Act 2006. They have general
responsibility for taking such steps as are reasonably
open to them to safeguard the assets of the Group and
to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors
are also responsible for preparing a Strategic Report,
Directors’ Report, Directors’ Remuneration Report and
Corporate Governance Statement that complies with
that law and those regulations.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information
included on the Company’s website. Legislation in the
UK governing the preparation and dissemination of
financial statements may differ from legislation in
otherjurisdictions.
Responsibility statement
oftheDirectors in respect
oftheannual financial report
We confirm that to the best of our knowledge:
·
the financial statements, prepared in accordance
with the applicable set of accounting standards,
give a true and fair view of the assets, liabilities,
financial position and profit or loss of the issuer and
the undertakings included in the consolidation taken
as a whole; and
·
the Strategic Report and Directors' Report includes
a fair review of the development and performance
of the business and the position of the issuer and the
undertakings included in the consolidation taken as
a whole, together with a description of the principal
risks and uncertainties that they face.
We consider the Annual Report and Accounts, taken
as a whole, is fair, balanced and understandable and
provides the information necessary for shareholders to
assess the Group’s position and performance, business
model and strategy.
On behalf of the Board,
Dean Finch Andrew Duxbury
Group Chief Executive Chief Financial Officer
9 March 2026 9 March 2026
Persimmon Plc Annual Report 2025 – 143Financial statementsGovernance Other informationStrategic report
Opinion
In our opinion:
·
Persimmon plc’s group financial statements and parent company financial statements (the “financial statements”)
give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 December 2025
and of the group’s profit for the year then ended;
·
the group financial statements have been properly prepared in accordance with UK adopted international
accounting standards;
·
the parent company financial statements have been properly prepared in accordance with UK adopted
international accounting standards as applied in accordance with section 408 of the Companies Act 2006; and
·
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Persimmon plc(the ‘parent company’) and its subsidiaries (the ‘group’)
for the year ended 31 December 2025 which comprise:
Group Parent company
Consolidated balance sheet as at 31 December 2025 Balance sheet as at 31 December 2025
Consolidated income statement for the year then ended Statement of changes in equity for the year then ended
Consolidated statement of comprehensive income for the
year then ended
Statement of cash flows for the year then ended
Consolidated statement of changes in equity for the year
then ended
Related notes 1 to 34 to the financial statements
including material accounting policy information
Consolidated statement of cash flows for the year
thenended
Related notes 1 to 34 to the financial statements, material
accounting policy information
The financial reporting framework that has been applied in their preparation is applicable law and UK adopted
international accounting standards and as regards the parent company financial statements, as applied in
accordance with section 408 of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit
of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Independence
We are independent of the group and parent in accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest
entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or the parent
company and we remain independent of the group and the parent company in conducting the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of
accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment
of the group and parent company’s ability to continue to adopt the going concern basis of accounting included:
·
In conjunction with our walkthrough of the Group’s financial close process, confirming our understanding
ofmanagement’s going concern assessment process;
·
Obtaining management’s going concern assessment, including the cash forecasts and covenant calculations for
the going concern period which covers the period to 30 June 2027 and testing them for arithmetic accuracy.
Management prepared a base case scenario that assumes an increase in volumes and selling prices from those
achieved in 2025 and a critical but plausible downside scenario which reflects the initial impact of the prior
global financial crisis for 2026, with gradual recovery. Additionally, management has prepared an extreme
scenario reflecting the impact of the global financial crisis for 2026, but with no recovery, and a reverse stress
test;
·
Challenging the appropriateness of the key assumptions in management’s base case forecast and comparing
them to the Group’s historic performance and industry predictions;
·
Challenging management’s consideration of a reasonable worst-case scenario (the critical but plausible
downside), evaluating whether the impact of a prolonged downturn in trading had been appropriately included
and whether climate risk may materially impact the going concern assessment;
·
Considering management’s reverse stress test in order to identify and understand what factors and how severe
a downside scenario would have to be to result in the Group utilising all liquidity or breaching a financial
covenant during the going concern period;
·
Assessing the plausibility of management’s downside scenarios, including the reverse stress test, by comparing
to third-party data, including industry predictions, for indicators of contradictory evidence;
·
Considering the amount and timing of mitigating factors under the Group’s control that could preserve cash
ifrequired; and
·
Reviewing the Group’s going concern disclosures included in the annual report in order to assess whether
theywere appropriate and in conformity with the reporting standards.
Independent auditor’s report
To the members of Persimmon Plc
Financial statementsGovernance Other informationStrategic report144 – Persimmon Plc Annual Report 2025
Conclusions relating to going concern continued
In each of the plausible scenarios modelled (the base case and critical downside), the Group maintains headroom
throughout the Going Concern period to 30 June 2027 through use of cash at bank and its £750m Revolving
Credit Facility (Expiring 6 July 2030) and £250m loan maturing 31 January 2028. Based on the work we have
performed, we have not identified any material uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the group and parent company’s ability to continue as a going concern
for a period 30 June 2027.
In relation to the group and parent company’s reporting on how they have applied the UK Corporate Governance
Code, we have nothing material to add or draw attention to in relation to the directors’ statement in the financial
statements about whether the directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in
therelevant sections of this report. However, because not all future events or conditions can be predicted,
thisstatement is not a guarantee as to the group’s ability to continue as a going concern.
Overview of our audit approach
Audit scope
·
We performed an audit of the complete financial information of one component
andaudit procedures on specific balances for a further two components and central
procedures on intercompany, equity, tax and cash
Key audit matters
·
Revenue recognition
·
Inventory valuation and profit recognition
·
Legacy buildings provision
Materiality
·
Overall group materiality of £22.1m which represents 5% of adjusted profit before tax.
An overview of the scope of the parent company and group audits
In the current year our audit scoping has been updated to reflect the new requirements of ISA (UK) 600 (Revised).
We have followed a risk-based approach when developing our audit approach to obtain sufficient appropriate
audit evidence on which to base our audit opinion. We performed risk assessment procedures, with input from our
component auditors, to identify and assess risks of material misstatement of the Group financial statements and
identified significant accounts and disclosures. When identifying components at which audit work needed to be
performed to respond to the identified risks of material misstatement of the Group financial statements, we considered
our understanding of the Group and its business environment, the potential impact of climate change, the applicable
financial framework, the group’s system of internal control at the entity level, the existence of centralised processes,
applications and any relevant internal audit results.
We identified three components as individually relevant to the Group due to relevant events and conditions
underlying the identified risks of material misstatement of the group financial statements being associated with
thereporting components.
For those individually relevant components, we identified the significant accounts where audit work needed to
beperformed at these components by applying professional judgement, having considered the group significant
accounts on which centralised procedures will be performed, the reasons for identifying the financial reporting
component as an individually relevant component and the size of the component’s account balance relative to
thegroup significant financial statement account balance.
We then considered whether the remaining group significant account balances not yet subject to audit procedures,
in aggregate, could give rise to a risk of material misstatement of the group financial statements.
Having identified the components for which work will be performed, we determined the scope to assign to each component.
Of the three components selected, we designed and performed audit procedures on the entire financial information
of one component (“full scope component”). For two components, we designed and performed audit procedures
on specific significant financial statement account balances or disclosures of the financial information of the
component (“specific scope components”).
Across these three components, we performed centralised audit procedures on intercompany, equity, tax and cash.
Our scoping to address the risk of material misstatement for each key audit matter covered 100% of each key
audit matter.
Involvement with component teams
All audit work performed for the purposes of the audit was undertaken by the Group audit team.
Climate change
Stakeholders are increasingly interested in how climate change will impact companies. The Group has determined
that the most significant future impacts from climate change on its operations will be from the various factors
explained on pages 59 to 69 in the required Task Force On Climate Related Financial Disclosures and on page
73 in the principal risks and uncertainties. They have also explained their climate commitments on pages 68 and
69. All of these disclosures form part of the “Other information,” rather than the audited financial statements. Our
procedures on these unaudited disclosures therefore consisted solely of considering whether they are materially
inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appear
to be materially misstated, in line with our responsibilities on “Other information”. In planning and performing our
audit we assessed the potential impacts of climate change on the Group’s business and any consequential
material impact on its financial statements.
The Group has explained in its basis of preparation accounting policy note (Note 2), its articulation of how
climate change has been reflected in the financial statements. There are no significant judgements or estimates
relating to climate change in the notes to the financial statements.
Our audit effort in considering the impact of climate change on the financial statements was focused on evaluating
whether management’s assessment of the impact of the physical climate risk of flooding has been appropriately
reflected in inventory asset values and whether the impact of costs associated with the Group’s planned transition
to net zero have been appropriately reflected in the projected financial information used for the assessment of the
Group’s viability and impairment. As part of this evaluation, we performed our own risk assessment to determine
the risks of material misstatement in the financial statements from climate change which needed to be considered
in our audit.
We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and
viability and associated disclosures. Where considerations of climate change were relevant to our assessment of
going concern, these are described above.
Persimmon Plc Annual Report 2025 – 145Financial statementsGovernance Other informationStrategic report
Based on our work, whilst we have not identified the impact of climate change on the financial statements to beastandalone key audit matter, we have considered the impact on the following key audit matter: inventory valuation.
Details of the impact, our procedures and findings are included in our explanation of the key audit matter below.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team.
Thesematters were addressed in the context of our audit of the financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
Risk Our response to the risk
Key observations communicated
to the Audit Committee
Inventory valuation and profit recognition
Inventory (Land): £2,592.0m
(2024:£2,265.6m)
Inventory (WIP): £1,634.0m
(2024:£1,426.3m)
Cost of Sales: £3,134.8m (2024: £2,620.3m)
Refer to the Audit Committee Report (page 108);
Accounting policies (pages 156 to 160); and Note
19 of the Consolidated Financial Statements
(page168)
There is a risk that the margin used to recognise
profit on each development is incorrect and that the
carrying value of WIP and land could be subject to
impairment write downs.
The carrying value of inventory is determined by
reference to a number of assumptions inherent in
the site forecasts, such as costs to complete and
expected selling price, that are used to calculate
the expected margin on each development and the
cost of sale therefore recorded when a plot is sold.
We performed the following procedures over this risk area:
·
We performed walkthroughs to understand the key processes and identify key controls;
·
We obtained an understanding of the relevant controls governing inventory costing and expenditure, ongoing margin review and land
acquisition. Weassessed design and implementation of key controls over the management’s bi-monthly valuation process;
·
We performed a substantive analytical review for the total cost of sales balance based on an overall group margin expectation;
·
We performed procedures using EY bespoke data analytics tools to analyse all the sites completed in the year. These were added to completed
sites from 2024 and 2023 to assess the accuracy of management’s historical forecasting. We used this analysis to focus the work we performed
on the appropriateness of profit recognised on sales made;
·
For a sample of active sites at year end, we challenged management’s assumptions of costs to come and expected selling prices by tracing
asample to the supporting evidence and considering relevant industry forecasts and wider economic factors (e.g. inflation trends);
·
For a sample of entries to cost of sales in the year, we checked that the margin recorded ties to the latest projected margin;
·
We performed sensitivity analysis for a sample of low margin sites held in WIP at year end; and
·
For a sample of land assets, we assessed the impairment risk due to potential flooding considering their location within the UK
Based on our audit
procedures we have
concluded that the
inventory balance
andprofit recognised
inthe year are not
materially misstated.
Independent auditor’s report continued
To the members of Persimmon Plc
Financial statementsGovernance Other informationStrategic report146 – Persimmon Plc Annual Report 2025
Risk Our response to the risk
Key observations communicated
to the Audit Committee
Appropriateness of legacy
buildingsprovision
Legacy buildings provision: £226.0m
(2024:£235.3m)
Refer to the Audit Committee Report (page 108);
Accounting policies (pages 156 to 160); and Note
23 of the Consolidated Financial Statements
(page170)
There is estimation uncertainty and subjectivity
indetermining the most likely costs which will be
required to remediate affected properties based
onthe latest legal interpretation and government
guidance. There is a risk that the legacy building
provision is misstated either through management
bias or error.
The key estimates we identified were in respect
ofthe costs to settle the obligation and the
assumptions used by management in relation
todiscounting and inflation.
We performed the following procedures over this risk area:
·
We performed walkthroughs to understand the key process and identify key controls;
·
We read and understood the relevant laws and regulations, including published government guidance;
·
We read management’s accounting paper to understand the methodology applied and management’s rationale for recognition of the provision;
·
We obtained management’s provision schedule, which showed the brought forward position and the current year movements relating to
provision utilisation, new sites identified, or additional costs estimated as a result of new tender information or changes in scope identified
astheremediation work progress;
·
On a sample basis, we tested the movements in individual development provisions. For new tenders, we have agreed the expected costs to
supporting third party documentation (i.e. subcontractor tenders). For those untendered, we will understand why these are still untendered,
andthen assess management’s estimate by reference to cost per square foot of those already tendered;
·
On a sample basis, we checked actual spend against the prior year estimates to determine the accuracy of management’s estimate. Wederived
a percentage deviation and applied it to the current year estimate to assess the impact;
·
We performed sensitivity analysis on the provision in order to establish whether these could give rise to a material variances;
·
We obtained completion report and certificates for all sites which are noted as complete or assessed with no further work;
·
We compared Persimmon’s remediation costs per building through to the remediation costs per building of other housebuilders;
·
To assess completeness, we performed a media search of buildings in scope of the Building Safety regulation that are linked to Persimmon
building work to see if there was any contrary evidence. We also searched the Ministry of Housing, Communities;
·
We assessed the appropriateness of the disclosures included within the Financial Statements in relation to provisions, including the disclosure
ofthe assumptions and associated sensitivities in relation to the key sources of estimation uncertainty.
Based on our audit
procedures we have
concluded that Legacy
Buildings Provision is
appropriately recognised.
Revenue recognition
Revenue: £3,751.3m (2024: £3,200.7m)
Refer to the Audit Committee Report (page 108);
Accounting policies (pages 156 to 160); and Note
5 of the Consolidated Financial Statements
(page161)
There is a potential risk of material misstatement
within revenue, particularly in relation to revenue
being recorded in the wrong period, due to cut
offerrors or management bias.
We performed the following procedures:
·
We performed walkthroughs to understand the key processes and identify key controls. This was done by selecting relevant transactions
andtracing them through the processes;
·
We performed procedures using EY data analytics tools to test the appropriateness of journal entries recorded in the general ledger by correlating
sales postings to cash receipts throughout the year. This allows us to validate the extent to which sales recognised have converted into cash;
·
We assessed whether revenue was recorded in the correct period by testing whether a sample of housing sales recorded within two weeks
either side of the year end have legally completed in the period in which the revenue is recognised, by tracing through to legal completion
statement and cash receipt; and testing whether Housing Association income has been recognised correctly. Depending on the terms of the
contract, revenue will either be recognised on completion, or it will be spread over the duration of the contract based upon agreed milestones;
·
We assessed material manual journals for any evidence of management bias by corroborating to supporting documentation, including those
made in respect of Housing Association sales; and
·
For material bulk sale arrangements, we assessed compliance with IFRS 15 and testing the assumptions with regard to deferred performance
obligations and variable consideration, where applicable.
Based on our audit
procedures we have
concluded that revenue is
appropriately recognised,
and that there was no
evidence of management
override.
Key audit matters continued
Persimmon Plc Annual Report 2025 – 147Financial statementsGovernance Other informationStrategic report
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified
misstatements on the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be
expected to influence the economic decisions of the users of the financial statements. Materiality provides a basis
for determining the nature and extent of our audit procedures.
We determined materiality for the Group to be £22.1m (2024: £19.7m), which is 5% (2024: 5%) of adjusted profit
before tax (2024: adjusted profit before tax). We believe that adjusted profit before tax provides us with us with
an appropriate basis for materiality and is the most relevant for stakeholders, as it is a focus of both management
and investors.
We determined materiality for the Parent Company to be £14.8m (2024: £17.3m), which is 1% (2024: 1%) of equity.
·
£ 3 97. 3 m
profit before tax
·
£44.9m
exceptional items
·
Totals £442.2m adjusted profit before tax
·
Materiality of £22.1m (5% of materiality basis)
Starting
basis
Adjustments
Materiality
Independent auditor’s report continued
To the members of Persimmon Plc
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to
anappropriately low level the probability that the aggregate of uncorrected and undetected misstatements
exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our
judgement was that performance materiality was 75% (2024: 75%) of our planning materiality, namely £16.5m
(2024: £14.8m). We have set performance materiality at this percentage based on our assessment of the control
environment of the Group and expectation of errors.
Audit work was undertaken at component locations for the purpose of responding to the assessed risks of material
misstatement of the group financial statements. The performance materiality set for each component is based on
the relative scale and risk of the component to the Group as a whole and our assessment of the risk of misstatement
at that component. In the current year, the range of performance materiality allocated to components was £5.1m
to £7.7m (2024: £2.9m to £8.8m).
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of
£1.1m (2024: £1.0m), which is set at 5% of planning materiality, as well as differences below that threshold that,
in our view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above
and in light of other relevant qualitative considerations in forming our opinion
Other information
The other information comprises the information included in the annual report set out on pages 1 to 143.
Thedirectors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise
explicitly stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or
otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives rise to a material misstatement in the financial
statements themselves. If, based on the work we have performed, we conclude that there is a material
misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in
accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
·
the information given in the strategic report and the directors’ report for the financial year for which the financial
statements are prepared is consistent with the financial statements and those reports have been prepared in
accordance with applicable legal requirements;
Financial statementsGovernance Other informationStrategic report148 – Persimmon Plc Annual Report 2025
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment
obtained in the course of the audit, we have not identified material misstatements in:
·
the strategic report or the directors’ report; or
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
·
adequate accounting records have not been kept by the parent company, or returns adequate for our audit
have not been received from branches not visited by us; or
·
the parent company financial statements and the part of the Directors’ Remuneration Report to be audited
arenot in agreement with the accounting records and returns; or
·
certain disclosures of directors’ remuneration specified by law are not made; or
·
we have not received all the information and explanations we require for our audit
·
a Corporate Governance Statement has not been prepared by the company
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the group and company’s compliance with the provisions of the UK
Corporate Governance Code specified for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the
Corporate Governance Statement is materially consistent with the financial statements or our knowledge obtained
during the audit:
·
Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting
andany material uncertainties identified set out on page 115;
·
Directors’ explanation as to its assessment of the company’s prospects, the period this assessment covers and
why the period is appropriate set out on page 77;
·
Directors’ statement on whether it has a reasonable expectation that the group will be able to continue in
operation and meets its liabilities set out on page 115;
·
Directors’ statement on fair, balanced and understandable set out on page 143;
·
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on
pages 70 to 76;
·
The section of the annual report that describes the review of effectiveness of risk management and internal
control systems set out on page 90; and
·
The section describing the work of the audit committee set out on page 108 to 114.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 143, the directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair
view, and for such internal control as the directors determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group and parent company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the group or the parent company
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting
irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a
material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may
involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with
governance of the company and management.
·
We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and
determined that the most significant frameworks which are directly relevant to specific assertions in the financial
statements are those that relate to the reporting framework (UK adopted international accounting standards,
the Companies Act 2006 and the UK Corporate Governance Code) tax compliance legislation, employment
law and building safety legislation.
·
We understood how Persimmon plc is complying with those frameworks by making enquiries of management,
Internal Audit, those responsible for legal and compliance procedures and the Company Secretary. We
corroborated our enquiries through our review of board minutes and papers provided to the Audit Committee.
Persimmon Plc Annual Report 2025 – 149Financial statementsGovernance Other informationStrategic report
Auditor’s responsibilities for the audit of the financial statements
continued
Explanation as to what extent the audit was considered capable of detecting
irregularities, including fraud continued
·
We assessed the susceptibility of the group’s financial statements to material misstatement, including how
fraudmight occur through internal team conversations and inquiry of management and those charged with
governance to understand where it considered there was a susceptibility for fraud. We corroborated our
enquiries through other work performed and made inquiries of management to identify if there are matters
where there is a risk of breach of such frameworks that could have a material adverse impact on the company,
as well as consideration of the results of our audit procedures across the company. We considered the programmes
and controls that the company has established to address risks identified, or that otherwise prevent, deter and
detect fraud; and how senior management monitors those programmes and controls. We also considered
performance targets and their propensity to influence efforts made by management to manage earnings.
Where the risk was considered to be higher, we performed audit procedures to address each identified fraud
risk. These procedures included testing manual journals and were designed to provide reasonable assurance
that the financial statements were free from fraud and error. We also utilised our analytics tools and paid
particular attention to manual journals in order to address the risk of management override. Where necessary
we involved forensic specialists to support the audit team in evaluating and concluding on our testing performed
in relation to management override.
·
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and
regulations. Our procedures involved enquiries about any instances of non-compliance with the Group
management and Internal Audit, understanding of the impact of any such non-compliance upon our audit, and
reviewing management specialist reports where necessary. We engaged internal specialists as required when
designing and executing audit procedures. We also performed journal entry testing, with a focus on manual
consolidation journals, and journals indicating large or unusual transactions based on our understanding of the
business; and focused testing, as referred to in the key audit matters section above. In addition, we completed
procedures to conclude on the compliance of the disclosures in the Annual Report and Accounts with the
requirements of the relevant accounting standards, UK legislation and the UK Corporate Governance Code.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of ourauditor’s report.
Other matters we are required to address
·
Following the recommendation from the audit committee, we were appointed by the company on 14 April 2016
to audit the financial statements for the year ending 31 December 2016 and subsequent financial periods.
·
The period of total uninterrupted engagement including previous renewals and reappointments is 10 years,
covering the years ending 31 December 2016 to 31 December 2025.
·
The audit opinion is consistent with the additional report to the audit committee.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of
theCompanies Act 2006. Our audit work has been undertaken so that we might state to the company’s members
those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s
members as a body, for our audit work, for this report, or for the opinions we have formed.
Victoria Venning (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
Manchester
9 March 2026
Independent auditor’s report continued
To the members of Persimmon Plc
Financial statementsGovernance Other informationStrategic report150 – Persimmon Plc Annual Report 2025
20252024
TotalTotal
Note£m£m
Revenue
5
3,7 5 1 .3
3,200.7
Cost of sales
(3,1 34.8)
(2,6 20.3)
Gross profit
6 1 6.5
580.4
Analysed as:
Underlying gross profit
656.3
58 2.4
Exceptional items
6
(39.8)
(2.0)
Other operating income
21. 4
9.8
Operating expenses
(225.2)
(1 9 6.0)
Exceptional – Profit on disposal of a business
6
11. 1
—
Exceptional – Impairment of a financial asset
6
—
(25.0)
Profit from operations
11
423.8
369.2
Analysed as:
Underlying operating profit
47 2.1
405.2
Exceptional items
6
(44.9)
(34.4)
Impairment of intangible assets
15
(3.4)
(1.6)
Finance income
10
11 . 4
11 . 1
Finance costs
10
(3 7 .9)
(2 1.2)
Profit before tax
397 .3
3 59.1
Analysed as:
Underlying profit before tax
44 5.6
39 5.1
Exceptional items
6
(44.9)
(34.4)
Impairment of intangible assets
15
(3.4)
(1.6)
Tax
12.1
(1 1 1.6)
(92.0)
Profit after tax (all attributable to equity holders of the parent)
14
285.7
2 6 7. 1
Consolidated statement of comprehensive income
For the year ended 31 December 2025
20252024
TotalTotal
Note£m£m
Other comprehensive expense
Items that will not be reclassified to profit:
Remeasurement loss on defined benefit pension schemes
29
(6.7)
(1 .5)
Tax
12.2
1. 9
0.4
Other comprehensive expense for the year, net of tax
(4.8)
(1 .1)
Total recognised income for the year
280.9
266.0
Earnings per share
Basic
14
89.3p
83.6p
Diluted
14
88.2p
8 2.7p
The Company is taking advantage of the exemption in section 408 of the Companies Act 2006 not to present its
individual statement of comprehensive income.
Persimmon Plc Annual Report 2025 – 151Financial statementsGovernance Other informationStrategic report
GroupGroupCompanyCompany
2025202420252024
Note£m£m£m£m
Assets
Non-current assets
Intangible assets
15
1 82.5
1 64.6
3.6
0.7
Property, plant and equipment
16
1 1 5.4
1 5 4.6
17. 0
10.5
Investments accounted for using
the equity method
17. 1
0.3
0.3
—
—
Investments in subsidiaries
17.2
—
—
3,205.7
3,205.7
Shared equity loan receivables
18
23.6
2 5.7
—
—
Trade and other receivables
20
1. 9
—
2,055.8
2,045.6
Deferred tax assets
25
—
9.2
—
6.2
Retirement benefit assets
29
1 30.7
1 30.7
130.7
130.7
454.4
48 5.1
5,412.8
5,399.4
Current assets
Inventories
19
4,492.3
3,902.8
—
—
Shared equity loan receivables
18
2.1
3.3
—
—
Trade and other receivables
20
249.9
16 7. 8
35.6
28.6
Cash and cash equivalents
27
11 7 . 0
2 58.6
62.0
182.0
Current tax assets
2.5
1 5.8
—
—
4,863.8
4,3 48.3
97. 6
210.6
Total assets
5,3 1 8.2
4,83 3.4
5,510.4
5,610.0
GroupGroupCompanyCompany
2025202420252024
Note£m£m£m£m
Liabilities
Non-current liabilities
Trade and other payables
22
(283.1)
(1 9 6.2)
(2.9)
(2.3)
Deferred tax liabilities
25
(54.4)
(7 3.1)
(28.9)
(38.7)
Partnership liability
30
(5.8)
(1 0.3)
—
—
Legacy buildings provision
23
(1 42.8)
(1 23.9)
—
—
(486.1)
(403.5)
(31.8)
(41.0)
Current liabilities
Trade and other payables
22
(1 ,1 23.8)
(806.3)
(3,886.2)
(3,796.7)
Partnership liability
30
(1 1 .0)
(5.6)
—
—
Legacy buildings provision
23
(83.2)
(1 1 1.4)
—
—
(1 ,2 1 8.0)
(9 2 3.3)
(3,886.2)
(3,796.7)
Total liabilities
(1 ,7 04.1)
(1 ,3 2 6.8)
(3,918.0)
(3,837.7)
Net assets
3,6 1 4.1
3,506.6
1,592.4
1,772.3
Equity
Ordinary share capital issued
26
32.1
3 2.0
32.1
32.0
Share premium
28.0
2 5.6
28.0
25.6
Capital redemption reserve
236.5
236.5
236.5
236.5
Other non-distributable reserve
2 7 6.8
2 7 6.8
—
—
Retained earnings
3,040.7
2,9 35.7
1,295.8
1,478.2
Total equity
3,6 1 4.1
3,506.6
1,592.4
1,772.3
The loss for the year dealt with in the accounts of the Company is £0.6m (2024: profit of £0.5m).
The financial statements of Persimmon Plc (company number: 1818486) on pages 151 to 195 were approved
by the Board of Directors on 9 March 2026 and were signed on its behalf by:
Dean Finch Andrew Duxbury
Group Chief Executive Chief Financial Officer
Balance sheets
As at 31 December 2025
Financial statementsGovernance Other informationStrategic report152 – Persimmon Plc Annual Report 2025
CapitalOther
redemptionnon-distributableRetained
Share capitalShare premiumreservereserveearningsTotal
Note£m£m£m£m£m£m
Group
Balance at 1 January 2024
31 . 9
2 5.6
236.5
2 7 6.8
2,847 .7
3,4 1 8.5
Profit for the year
—
—
—
—
2 6 7. 1
2 6 7. 1
Other comprehensive expense
—
—
—
—
(1 .1)
(1 .1)
Transactions with owners:
Dividends on equity shares
13
—
—
—
—
(1 9 1 .8)
(1 9 1 .8)
Issues of new shares
26
0.1
—
—
—
—
0.1
Own shares purchased
26
—
—
—
—
(0.2)
(0.2)
Share-based payments
—
—
—
—
1 4.0
1 4.0
Balance at 31 December 2024
3 2.0
2 5.6
236.5
2 7 6.8
2,9 3 5.7
3,506.6
Profit for the year
—
—
—
—
285 . 7
285 . 7
Other comprehensive expense
—
—
—
—
(4.8)
(4.8)
Transactions with owners:
Dividends on equity shares
13
—
—
—
—
(1 92.1)
(1 9 2.1)
Issues of new shares
26
0.1
2.4
—
—
—
2.5
Own shares purchased
26
—
—
—
—
(2.3)
(2.3)
Share-based payments
—
—
—
—
1 8.5
1 8.5
Balance at 31 December 2025
32.1
28.0
236.5
27 6.8
3,040.7
3,6 1 4.1
The other non-distributable reserve arose prior to transition to IFRSs and relates to the issue of ordinary shares to acquire the shares of Beazer Group Plc in 2001.
Statement of changes in shareholders’ equity
For the year ended 31 December 2025
Persimmon Plc Annual Report 2025 – 153Financial statementsGovernance Other informationStrategic report
Note
Share capital
£m
Share premium
£m
Capital
redemption
reserve
£m
Retained
earnings
£m
Total
£m
Company
Balance at 1 January 2024 31. 9 25.6 236.5 1,656.6 1,950.6
Profit for the year — — — 0.5 0.5
Other comprehensive expense — — — (1.1) (1.1)
Transactions with owners:
Dividends on equity shares 13 — — — (191.8) (191.8)
Issues of new shares 26 0.1 — — — 0.1
Own shares purchased 26 — — — (0.2) (0.2)
Share-based payments — — — 14.2 14.2
Balance at 31 December 2024 32.0 25.6 236.5 1,478.2 1,772.3
Profit for the year — — — (0.6) (0.6)
Other comprehensive expense — — — (4.8) (4.8)
Transactions with owners:
Dividends on equity shares 13 — — — (192.1) (192.1)
Issues of new shares 26 0.1 2.4 — — 2.5
Own shares purchased 26 — — — (2.3) (2.3)
Share-based payments — — — 17. 4 17. 4
Balance at 31 December 2025 32.1 28.0 236.5 1,295.8 1,592.4
During the year the Company received dividends from wholly owned subsidiary undertakings of £nil (2024: £nil).
Retained earnings include £0.7m of non-distributable items (2024: £0.7m).
Statement of changes in shareholders’ equity continued
For the year ended 31 December 2025
Financial statementsGovernance Other informationStrategic report154 – Persimmon Plc Annual Report 2025
GroupGroupCompanyCompany
2025202420252024
Note£m£m£m£m
Cash flows from operating activities:
Profit /(loss) for the year
285.7
2 6 7. 1
(0.6)
0.5
Tax charge
12.1
111 . 6
9 2.0
0.8
0.1
Finance income
10
(1 1 .4)
(1 1.1)
(9.0)
(7.6)
Finance costs
10
3 7. 9
21 . 2
17.2
8.3
Depreciation charge
16
21. 1
20.1
3.0
2.2
Amortisation of intangible assets
15
0.1
—
0.1
—
Impairment of intangible assets
15
3.4
1. 6
—
—
Exceptional items (non-cash)
6
55.0
27. 0
—
—
Profit on disposal of a business
6
(1 1 .1)
—
—
—
Profit on disposal of fixed assets
(1 .5)
(2.5)
—
—
Share-based payment charge
1 6.1
1 4.7
16.1
14.7
Net imputed interest expense
(1 8.3)
(1 0.0)
—
—
Other non-cash items
(0.7)
(0.5)
0.5
0.6
Cash inflow from operatingactivities
48 7 .9
4 1 9.6
28.1
18.8
Movements in working capital:
Increase in inventories
(590.1)
(200.4)
—
—
(Increase)/decrease in trade
andotherreceivables
(84.7)
1 2.7
(17.2)
(16.3)
Increase/(decrease) in trade
andotherpayables
3 21 . 4
(49.6)
90.0
142.4
Decrease in shared equity loan
receivables
4.0
4.6
—
—
Cash generated fromoperations
1 38.5
1 86.9
100.9
144.9
Interest paid
(1 6.7)
(9.3)
(16.3)
(7.7)
Interest received
3.8
5.1
1.9
2.1
Tax paid
(96.1)
(97 .8)
(1.1)
(0.5)
Net cash inflow from operating activities
2 9.5
84.9
85.4
138.8
GroupGroupCompanyCompany
2025202420252024
Note£m£m£m£m
Cash flows from investing activities:
Acquisition of a subsidiary
7
(3.5)
—
—
—
Disposal of a business
6
68.1
—
—
—
Acquisition of loan notes
—
(1 7 .5)
—
—
Purchase of property, plant, equipment
and software
16
(40.6)
(3 2.3)
(12.0)
(4.5)
Proceeds from sale of property,
plantandequipment
2.8
4.8
—
—
Net cash inflow/(outflow) from
investing activities
26.8
(45.0)
(12.0)
(4.5)
Cash flows from financing activities:
Lease capital payments
(5.1)
(4.0)
(0.6)
(0.5)
Payment of Partnership liability
—
(4.6)
—
—
Bank fees paid
(0.9)
(0.9)
(0.9)
(0.9)
Own shares purchased
(2.3)
(0.2)
(2.3)
(0.2)
Share options consideration
2.5
0.1
2.5
0.1
Dividends paid
13
(1 92.1)
(1 9 1 .8)
(192.1)
(191.8)
Net cash outflow from financing activities
(1 97 .9)
(20 1.4)
(193.4)
(193.3)
Decrease in net cash
andcashequivalents
27
(1 4 1.6)
(1 6 1.5)
(120.0)
(59.0)
Cash and cash equivalents
atthebeginning of the year
258.6
42 0.1
182.0
241.0
Cash and cash equivalents
attheendof the year
27
117. 0
258.6
62.0
182.0
Cash flow statements
For the year ended 31 December 2025
Persimmon Plc Annual Report 2025 – 155Financial statementsGovernance Other informationStrategic report
Notes to the financial statements
For the year ended 31 December 2025
1 Adoption of new and revised International Financial Reporting
Standards (’IFRSs’) and Interpretations (’IFRICs’)
The following relevant UK endorsed new amendments to standards are mandatory for the first time for the
financial year beginning 1 January 2025:
·
Amendments to IAS 21 Lack of Exchangeability
The above amendment has no effect on the Group’s financial statements.
The Group has not applied the following new amendments and improvements to standards which are not yet effective:
·
Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7), effective 1 January 2026
·
Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments,
effective 1 January 2026
·
Annual Improvements to IFRS Accounting Standards – Volume 11, effective 1 January 2026
·
IFRS 18 Presentation and Disclosure in Financial Statements, effective 1 January 2027
The Group is currently considering the implication of these amendments and improvements with the expected
impact upon the Group being limited to disclosures if applicable.
2 Accounting policies
Statement of compliance
The consolidated Group financial statements are prepared in accordance with UK adopted International
Accounting Standards (‘IAS’). Parent Company financial statements are prepared in accordance with UK adopted
IAS in conformity with the requirements of the Companies Act 2006.
Basis of preparation
The financial statements have been prepared on the historical cost basis except for the revaluation of certain financial
instruments. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
In preparing the Group financial statements management has considered the impact of climate change, taking into
account the relevant disclosures in the Strategic Report, including those made in accordance with the recommendations
of the Task Force on Climate Related Disclosures. This included an assessment of inventories and goodwill and
intangible assets and how they could be impacted by measures taken to address global warming.
Recognising that the environmental impact on the Group’s operations is relatively low, no issues were identified
that would impact the carrying values of such assets or have any other impact on the financial statements.
Going concern
Our disciplined and strategic financial investment in the business has resulted in the Group operating from a strong
balance sheet position, delivering an improved financial performance and growth in volume of new homes delivered.
Persimmon’s long-term strategy, which recognises the risks associated with the housing cycle by maintaining
operational flexibility, investing in high quality land, minimising financial risk and deploying capital at the right
time in the cycle, has equipped the business with strong liquidity and a robust balance sheet.
The Group completed the sale of 11,905 new homes (2024: 10,664), generating a profit before tax of
£397.3m (2024: £359.1m). At 31 December 2025, the Group’s strong financial position included £117.0m
of cash (2024: £258.6m), high quality land holdings, and land creditors of £623.4m (2024: £423.2m).
During the year the Group extended by one year to July 2030 its £700m Revolving Credit Facility (’RCF’).
The facility was undrawn at the year end. During January 2026 the Group increased the £700m RCF by
£50m to £750m. In addition the Group agreed with its banking partners a £250m two-year term loan
with the ability to extend for an additional year.
The Group’s forward order book at 1 January 2026 includes 2,318 new homes sold forward into the private
owner occupier market (1 January 2025: 2,360 new homes forward sold) with an average selling price of
c.£293,400. In addition, the cumulative average private sales, excluding bulk, reservation rate for the first
nine weeks of 2026 is c.3% stronger than for the same period last year.
The Directors have carried out a robust assessment of the principal risks facing the Group, as described on pages
73 to 76 of this report. The Group has considered the impact of these risks on the going concern of the business by
performing a range of sensitivity analyses to the latest base case forecast, covering the period to 30 June 2027,
including severe but plausible scenarios materialising together with the likely effectiveness of mitigating actions
that would be executed by the Directors. For further detail regarding the approach and process the Directors
follow in assessing the long-term viability of the business, please see the Viability Statement on pages 77 to 79.
The scenarios emphasise the potential impact of severe market disruption, including for example the effect of
economic disruption from a cost-of-living crisis or a war, on short to medium-term demand for new homes. The
scenarios’ emphasis on the impact on the cash inflows of the Group through reduced new home sales is designed
to allow the examination of the extreme cash flow consequences of such circumstances occurring. The Group’s
cash flows are less sensitive to supply side disruption given the Group’s sustainable business model, flexible
operations, agile management team and off-site manufacturing facilities.
The first scenario modelled is a severe but plausible downside scenario that models a fall in housing revenue,
when compared to full year 2025, of c.53% for full year 2026 followed by gradual recovery. The housing revenue
modelled factors in changes in both volumes and average selling prices. The assumption used in this scenario
reflects the experience management gained during the Global Financial Crisis from 2007 to 2010, it being the
worst recession seen in the housing market since World War Two.
A second, even more extreme, scenario assumes the same significant downturn in 2026 followed by a period
of enduring depression of the UK economy and housing market during 2027, assuming that neither volumes nor
revenue recover.
In each of these scenarios, cash flows were assumed to be managed consistently, ensuring all relevant land, work
in progress and operational investments were made in the business at the appropriate time to deliver the projected
new home legal completions. Each scenario fully reflects the current estimate of cash outflows, value and timing,
associated with the legacy buildings provision. In each of these scenarios, the Group is able to operate within
its facilities.
The Directors have also considered a ‘Reverse Stress Test’ to demonstrate the point at which the Group runs out
of liquid funds or breaches covenants but note the likelihood of this is less than remote.
In addition, the Group has been increasingly assessing climate related risks and opportunities that may present
to the Group. During the period assessed for going concern no significant risk has been identified that would
materially impact the Group’s ability to generate sufficient cash and continue as a going concern.
Financial statementsGovernance Other informationStrategic report156 – Persimmon Plc Annual Report 2025
2 Accounting policies continued
Going concern continued
Having considered the inherent strength of the UK housing market, the resilience of the Group’s average selling
prices and the Group’s scenario analysis as detailed above, the Directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence to 30 June 2027. Accordingly, they continue
to adopt the going concern basis in preparing these financial statements.
Basis of consolidation
The consolidated financial statements include the financial statements of the Company and its subsidiaries up
to 31 December each year. Subsidiaries are entities controlled by the Group. The Group controls an entity when
it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect
the returns through its power over the entity. The acquisition date is the date on which control is transferred to the
acquirer. The financial statements of subsidiaries are included in the consolidated financial statements from the
date that control commences until the date that control ceases. Where necessary, adjustments are made to the
financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group.
All intra-Group transactions, balances, income and expenses are eliminated on consolidation.
Business combinations
The acquisition of subsidiaries is accounted for using the acquisition method. The subsidiary’s identifiable assets,
liabilities and contingent liabilities are recognised at their fair value at the acquisition date.
Goodwill
Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group’s interest in
the fair value of the identifiable assets, liabilities and contingent liabilities of the acquired entity at the date of
the acquisition. Goodwill arising on acquisition of subsidiaries and businesses is capitalised as an asset.
Goodwill is subsequently measured at cost less any accumulated impairment losses.
Brand intangibles
Internally generated brands are not held on the balance sheet. The Group carries assets on the balance sheet
only for brands that have been acquired. Acquired brand values are calculated based on discounted cash flows.
No amortisation is charged on brand intangibles as the Group believes that the value of the brands is maintained
indefinitely. The factors that result in the durability of the brands capitalised are that there are no material legal,
regulatory, contractual, competitive, economic or other factors that limit the useful life of these intangibles. The
acquired brands are tested annually for impairment by performing a value in use calculation, using a discount
factor based on the Group’s pre-tax weighted average cost of capital, on the branded income stream.
Where a brand’s life is not deemed to be indefinite it is written off over its expected useful life on a straight line basis.
Other Intangible Assets
Other intangible assets include know-how and customer contracts acquired on acquisition of subsidiary companies
and computer software developed by the Group. Other intangible assets are reviewed for impairment when there
is a triggering event. Cost is determined at the time of acquisition/development as being directly attributable costs.
Other intangible assets are amortised on a straight line basis over a period of 5 years from the point where fully
operational, or less where appropriate.
Revenue recognition
Revenue on private new housing is recognised as the consideration received on legal completion of new built
private residential property sale.
Revenue on housing sold to housing associations is recognised either on the consideration received on legal
completion of a newly built residential property or amounts contractually due under development agreement.
The Group recognises revenue in the income statement over time for contracts where the control of land is
irrevocably transferred to the customer before or during construction. Revenue is recognised from the point that
control is irrevocably transferred to the customer. Where revenue is recognised over time and the outcome of the
contract can be estimated reliably, it is recognised based on the stage of completion of the agreement as verified
by surveys performed by the relevant customer. Revenue also includes the fair value of the consideration received
or receivable on the sale of part exchange properties. Revenue relating to the provision of internet services is
recognised as the service is provided.
Revenue also includes the fair value of the consideration received or receivable on the sale of part exchange properties.
Revenue relating to the provision of internet services is recognised as the service is provided.
Revenue from planning promotion contracts is recognised at the point at which contractual obligations are satisfied.
Government grants
Grants are included within work in progress in the balance sheet and are credited to the Consolidated Statement
of Comprehensive Income over the life of the developments to which they relate. Grants related to legal
completions have been recognised in revenue.
Other operating income
Other operating income comprises profits from the sale of land holdings, freehold reversions, rent receivable
and other incidental sundry income.
Operating expenses
Operating expenses represent the administration costs of the business, which are written off to the statement
of comprehensive income as incurred.
Borrowing costs
Interest bearing bank loans and partnership liabilities are initially measured at fair value (being proceeds received,
net of direct issue costs) and are subsequently measured at amortised cost, using the effective interest rate method.
Finance charges, including direct issue costs, are accounted for and taken to the statement of comprehensive
income using the effective interest rate method.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to
the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Where bank agreements include a legal right of offset for in hand and overdraft balances, and the Group intends
to settle the net outstanding position, the offset arrangements are applied to record the net position in the
balance sheet.
Persimmon Plc Annual Report 2025 – 157Financial statementsGovernance Other informationStrategic report
2 Accounting policies continued
Exceptional items
Exceptional items are items of income and expenditure that, in the judgement of management, should be disclosed
separately on the basis that they are material, either by their nature or their size, to an understanding of the
financial performance and significantly distort the comparability of financial performance between accounting
periods. Items of income or expense that are considered by management for designation as exceptional include
such items as major restructuring and significant impairment of assets.
During the year, the Group recognised a net exceptional charge of £44.9m (2024: £34.4m). Further details
on this can be found in note 6.
All items have been disclosed as exceptional due to the non-recurring nature and scale of the charge to aid
understanding of the financial performance of the Group and to assist in the comparability of financial
performance between accounting periods.
Share-based payments
Charges for employee services received in exchange for share-based payment have been made for all options/awards
in accordance with IFRS 2 Share-based Payment, to spread the fair value of the grant over the anticipated vesting period.
The fair value of such options has been calculated using generally accepted option pricing models, based upon
publicly available market data at the point of grant. Share options include both market and non-market conditions.
Market conditions are considered in the establishment of the initial valuation of the options. In the event of failure
to meet market conditions share-based payment charges are not reversed. In the event of failure to meet
non-market conditions share-based payment charges are reversed.
Where options are net settled in respect of withholding tax obligations, these are accounted for as equity settled
transactions. Payments to HMRC are accounted for as a deduction from equity for the shares withheld, except to
the extent (if any) that the payment exceeds the fair value of shares withheld, in which case the excess will be
charged to the statement of comprehensive income.
Share-based payments are charged wholly in the ultimate Parent Company.
Retirement benefit costs
The Group operates two defined benefit pension schemes which are now closed to further accrual. It also
operates three defined contribution schemes for current employees. The asset/liability in respect of the defined
benefit schemes is the present value of the defined benefit obligation at the balance sheet date, less the fair value of
the schemes’ assets, together with adjustments for remeasurement gains and losses. Where a net asset results it is
limited to the present value of economic benefits available in the form of future refunds from the scheme or reductions
in future contributions, subject to any minimum funding requirements. Further details of the schemes and the
valuation methods applied may be found in note 29.
Interest cost on the scheme liabilities and finance returns on scheme assets are recognised at the applicable
discount rate as net finance income/costs in the statement of comprehensive income and remeasurement gains
and losses via the statement of other comprehensive income.
The current service cost is borne by the Company as the legal sponsor, as are all experience gains and losses.
There is no contractual arrangement or stated policy for recharging the other Group entities involved in the
schemes.
Payments to the defined contribution schemes are accounted for on an accruals basis. Once the payments have
been made, the Group has no further payment obligations.
Taxation
Income tax on the profit for the year comprises current and deferred tax. Income tax is recognised in the statement
of comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it
is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using enacted or substantially enacted
tax rates, and adjusted for any tax payable in respect of previous years. The Group assesses its exposure to Pillar
Two income taxes based on the most recent information available from tax filings and financial statements, and
takes into account known changes in the Group and its operations.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
The following temporary differences are not provided for: goodwill, the initial recognition of assets or liabilities
that affect neither accounting or taxable profit, and differences relating to investment in subsidiaries to the extent
that they will probably not reverse in the foreseeable future.
The amount of deferred tax provided is based on the carrying amount of assets and liabilities, using the tax rates
applicable, or expected to be applicable at the date of settlement, based on enacted rates at the balance sheet
date. Where the deferred tax asset recognised in respect of share-based payments would give rise to a credit in
excess of the related accounting charge at the prevailing tax rate the excess is recognised directly in equity. A deferred
tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the asset can be utilised. Deferred tax assets are reviewed at each balance sheet date. Deferred tax assets
and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities when the Group intends to settle its current tax assets and liabilities on a net basis. The Group has applied
the mandatory temporary exception from recognising deferred tax assets and liabilities arising from Pillar Two
income taxes, in accordance with the IASB amendments to IAS 12. No deferred taxes related to Pillar Two have
been recognised. The Group does not expect to incur Pillar Two top up tax for the reporting period.
The Group accounts for current and deferred tax in accordance with IFRIC 23 – Uncertainty over Income Tax
Treatments. Where uncertainty exists, the Group assesses whether it is probable that the tax authority will accept
the treatment. If not, the effect of the uncertainty is reflected using the most likely amount or expected value method.
Financial statementsGovernance Other informationStrategic report158 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
2 Accounting policies continued
Property, plant and equipment
It is the Group’s policy to hold property, plant and equipment at cost less accumulated depreciation, subject to the
requirement to test assets for impairment.
Depreciation on property, plant and equipment is provided using the straight line method to write off the cost less
any estimated residual value, over the estimated useful lives on the following bases:
·
Plant and equipment – 3 to 5 years.
·
Fixtures, fittings and IT equipment – 3 to 5 years.
·
Owned utility infrastructure – 15 to 40 years.
·
Freehold buildings – 50 years.
No depreciation is provided on freehold land.
The assets’ useful economic lives and residual values are reviewed and adjusted, if appropriate, at each financial year end.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
Investments
Interests in subsidiary undertakings are valued at cost less impairment. Other investments are stated at fair value.
Joint ventures and associates
A joint venture is an entity in which the Group holds an interest with one or more other parties where a contractual
arrangement has established joint control over the entity, and where the arrangements entitle the Group to a share
of the net assets of the entity.
An associate is an entity in which the Group holds an interest with one or more other parties where it exerts
significant influence, but not overall control, over the entity.
Investments in joint ventures and associates are accounted for under the equity method of accounting.
Joint operations
A joint operation is an arrangement or entity in which the Group holds an interest with one or more other parties
where a contractual arrangement has established joint control over the operation and where the arrangements
entitle the Group to rights over specific assets or obligations of the operation. The Group recognises its share
of revenue, costs, assets and liabilities for its joint operations.
Shared equity loan receivables
Receivables on extended terms granted as part of a sales transaction are secured by way of a second legal
charge on the respective property. The loans are classified as financial assets held at fair value through profit or
loss and are carried in the balance sheet at fair value with net changes in fair value recognised in the statement
of comprehensive income as described in note 18.
Inventories
Inventories are stated at the lower of cost and net realisable value. Land with planning includes undeveloped land
and land under development and is initially recorded at discounted cost. Where, through deferred purchase credit
terms, the carrying value differs from the amount that will ultimately be paid in settling the liability, this difference
is charged as a finance cost in the statement of comprehensive income over the period of settlement. Work in
progress comprises direct materials, labour costs, site overheads, associated professional charges and other
attributable overheads. Net realisable value represents the estimated selling prices less all estimated costs of
completion and overheads.
Investments in land without the benefit of a planning consent are initially included at cost. Regular reviews are
carried out to identify any impairment in the value of the land considering the existing use value of the land and the
likelihood of achieving a planning consent and the value thereof. Provision is made to reflect any irrecoverable amounts.
Expenditure relating to forward land, including options, fees and planning promotion agreements are held at cost.
If the option expires or the Directors no longer consider it likely that the option will be exercised prior to the
securing of planning permission, the amount is subject to an annual impairment review.
Impairment of financial assets
The Group recognises an allowance for expected credit losses for all debt instruments not held at fair value
through profit and loss. Expected credit losses are based on the difference between the contracted cash flows
due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an
approximation of the original effective interest rate.
For trade receivables and, in the Parent Company, intercompany receivables, the Group applies a simplified
approach in calculating expected credit losses. The Group does not track changes in credit risk, but instead
recognises a loss allowance based on lifetime expected credit losses at each balance sheet date.
Inter-Group guarantees
The Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within
the Group. These have been of insignificant value in the year.
Trade and other payables
Trade payables on normal terms are not interest bearing and are stated at amortised cost. Trade payables on extended
terms, particularly in respect of land purchases, are initially recorded at their fair value and subsequently measured
at amortised cost using the effective interest method.
Provisions
Provisions are recognised when the Group has a present commitment as a result of a past event and it is probable
that an outflow of resources embodying economic benefits will be required to settle that commitment. Provisions are
measured at the Directors’ best estimate of the expenditure required to settle the commitment at the balance sheet
date and are discounted to present value where the effect is material.
Deposits
New property deposits and on account contract receipts are held within current trade and other payables until the
legal completion of the related property or cancellation of the sale.
Persimmon Plc Annual Report 2025 – 159Financial statementsGovernance Other informationStrategic report
2 Accounting policies continued
Cash and cash equivalents
Cash and cash equivalents include cash and balances in the bank accounts with no notice or less than three
months’ notice from inception, and are subject to insignificant risk of changes in value.
Interest bearing borrowings
Interest bearing borrowings and partnership liabilities are carried at amortised cost.
Dividends
Dividends receivable by the Parent Company from subsidiaries are accounted for on a cash basis, or once formally
approved by the shareholders of the subsidiary companies. These cash flows are treated as operating cash flows
on the basis that the Parent Company’s underlying activities includes receiving dividends from its subsidiaries.
Dividends payable are recorded in the period in which they are approved or paid, whichever is earliest.
Own shares held
The Group may acquire holdings in its own shares either directly or via employee benefit trusts. The acquisition
cost of such shares (including associated purchase costs) is treated as a deduction from retained earnings. Such
shares may be used in satisfaction of employee options or rights, in which case the cost of such shares is reversed
from the retained earnings on a ‘first in first out’ basis.
Transactions of the Company sponsored EBT are treated as being those of the Company and are therefore
reflected in the Company financial statements. In particular, the trust’s purchases and sales of shares in the
Company are debited and credited directly to equity.
3 Critical accounting judgements and key sources
of estimation uncertainty
In applying the Group’s accounting policies which are described in note 2, the Directors have made no individual
judgements that have a significant impact upon the financial statements, excepting those involving estimation
which are dealt with below. The key sources of estimation uncertainty at the balance sheet date are:
Pensions
The Directors have employed the services of a qualified, independent actuary in assessing pension assets/liabilities.
However, they recognise that final liabilities and asset returns may differ from actuarial estimates and therefore the
ultimate pension asset/liability may differ from that included in the financial statements. For further information on
the estimates used, please refer to note 29.
Provisions
The Group holds a provision of £226.0m (2024: £235.3m) based on management’s best estimates of the costs of
completing works to ensure fire safety on affected buildings under direct ownership, and to work with and support
owners and other relevant stakeholders on buildings it has developed. The prior year provision represented
management’s best estimate of the liability based on the information available at that point. During 2022 we signed
the Building Safety Pledge (England) and worked constructively with the Government to agree the ‘Long–Form
Contract’ that turned the pledge into a legal agreement. The Self Remediation Contract was signed on 13 March 2023.
In December 2025, we were the first housebuilder to sign the Scottish Government’s developer remediation contract.
As we have worked through this process we have identified further eligible multi-storey developments requiring
remediation for which we will be liable, and developed a more detailed understanding of remediation costs.
The number of developments we are responsible for has increased and now stands at 87 (2024: 83) of which
43 have now either secured EWS1 certificates or concluded any necessary works (2024: 40).
These estimates may change over time as further information is assessed, remedial works progress, the interpretation
of fire safety regulations further evolves and further developments requiring remediation works are potentially identified.
The assessment of the provision remains a highly complex area with judgements and estimates in respect of the
costs of remedial works to be incurred. Whilst we have exercised our best judgement in these matters, there remains
the potential for variations to this estimate from multiple factors such as material, energy and labour cost inflation,
limited qualified contractor availability and abnormal works identified on intrusive surveys. Should a 20%
variation in the costs of untendered projects occur then the overall provision would vary by +/- £17.2m.
The following areas of estimation uncertainty are not presented to comply with the requirements of paragraph
125 of IAS 1, Presentation of Financial Statements as it is not expected there is a significant risk of a material
adjustment to the carrying amount of assets within the next financial year. They are presented as an additional
disclosure of estimate used in these accounts
Land and work in progress
Given the high quality of the Group’s inventory asset base, the sensitivity of the assumptions used in assessing the
net realisable value (‘NRV’) of the Group’s inventories is relatively low. As such no reasonably possible change in
assumptions is likely to result in a material impact to the carrying value of the Group’s land and work in progress
balance within the next 12 months. The disclosure below provides additional insight into the carrying value of the
Group’s land and work in progress.
Valuations of the Group’s developments, which include an estimation of costs to complete and anticipated
revenues, are carried out at regular intervals throughout the year. The valuations allocate total expected site
development costs between units built in the current year and those to be built in future years. These valuations
therefore include a degree of uncertainty when estimating the profitability of a site and in assessing any impairment
provision which may be required.
During the year ended 31 December 2025, the Group conducted reviews of the NRV of its development land
and work in progress carrying values. The reviews were conducted on a site-by-site basis, using assumptions
surrounding anticipated selling prices and the level of future development costs, based on local management
and the Board’s assessment of market conditions existing at the balance sheet date.
As noted above, the sensitivity of these assumptions to inventory carrying value is relatively low. However, the
most sensitive assumption relates to the consideration of the Group’s average selling price prognosis – for example,
the Directors have modelled a scenario involving an immediate and enduring reduction in Group average selling
price of 10% across each plot in the Group’s owned land holdings (it is important to note that the enduring nature
of this assumption would present unusually unique circumstances when considered in the context of the UK housing
market). Such a scenario would not result in a material adjustment to the carrying value of the Group’s inventory.
Given these factors, the Board does not believe that a reasonably possible change in the assumptions could result
in a material impairment of land and work in progress carrying values in the next 12 months. Cost of materials and
labour have been included in the assessment of sensitivity and are considered to be immaterial in the valuation of
the Group’s inventory.
If there are significant movements in UK house prices or development costs, beyond management’s reasonably
possible expectations, then further impairments of land and work in progress may be necessary.
Financial statementsGovernance Other informationStrategic report160 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
3 Critical accounting judgements and key sources
ofestimationuncertainty continued
Shared equity loan receivables
Shared equity loan receivables comprise loans granted as part of sales transactions that are secured by way of a
second legal charge on the respective property. The fair value of these receivables is determined by taking into
account factors such as the length of time that the loan has been outstanding, market conditions, including those in
respect of house price inflation, forced sale discount and probability of borrower default. The variables used are
kept under regular review to ensure that as far as possible they reflect current economic circumstances; however,
changes in house prices, redemption dates, interest rates, unemployment levels and bankruptcy trends in the UK
could result in actual returns differing from reported valuations. At 31 December 2025 the loan recognised on the
balance sheet was £25.7m (2024: £29.0m).
4 Principal activities
The Group has only one reportable operating segment, being housebuilding within the UK, under the control of
the Executive Board. The Executive Board has been identified as the Chief Operating Decision Maker as defined
under IFRS 8 Operating Segments.
5 Revenue
An analysis of the Group’s revenue is as follows:
2025 2024
£m £m
Revenue from the sale of new housing – private
2,962.7
2,606.0
Revenue from the sale of new housing – housing association
349.3
257.3
Revenue from the sale of new housing – total
3,312.0
2,863.3
Revenue from the sale of part exchange properties
426.7
322.6
Revenue from the provision of internet services
10.7
14.8
Revenue from planning promotion contracts
1.9
—
Revenue from the sale of goods and services as reported in the statement
of comprehensive income
3,751.3
3,200.7
Other operating income
21.4
9.8
Finance income
11 . 4
11 . 1
3,784.1
3,221.6
Revenue from the sale of new housing includes £465.2m (2024: £361.5m) in respect of the value of properties
accepted in part exchange by the Group. Of this £198.8m of part exchange stock remained unsold at 31 December and is
reported within Inventories (2024: £154.4m).
6 Exceptional items
2025 2024
£m £m
Legacy buildings provision (through Cost of Sales)
39.8
2.0
Profit on disposal of a business
(11.1)
—
Impairment of a financial asset
—
25.0
Affordable Homes Programme contribution (through Operating expenses)
15.2
—
Project fees (through Operating expenses)
1.0
7.4
Exceptional items net charge
44.9
34.4
During 2025 the Group recognised a net exceptional charge of £39.8m in relation to the increase in the anticipated costs
of the Group’s commitments to support leaseholders in buildings we had developed with the cost of removal of combustible
cladding and other fire related remediation works. This reflected the identification of further developments for which we are
now responsible and a greater understanding of remediation costs,offset by works assumed by and recoveries secured
from historic subcontractors. Further details on this matter is provided in note 23.
On 5 August 2025 the assets of £65.9m, primarily Property, Plant and equipment of £59.2m, and liabilities of
£8.9m, mainly deferred tax liabilities of £8.7m, associated with the FibreNest operation were sold to BUUK
Infrastructure No 2 Limited. Net proceeds received on the sale were £68.1m generating a profit on sale of £11.1m.
On 26 February 2024, the CMA launched an investigation under Chapter I of the Competition Act 1998 into suspected
breaches of competition law by eight housebuilders (following the Barratt/Redrow mergers, seven housebuilders),
including Persimmon, relating to concerns that they may have exchanged competitively sensitive information. On
10 January 2025, the CMA extended the timeline for the initial investigation by five months to May 2025.
On 9 July 2025, the CMA announced that it proposed to accept commitments and close its investigation, without
making any findings that Persimmon Plc and its group companies had infringed UK competition law. Persimmon’s
decision to offer voluntary commitments does not constitute an admission of any wrongdoing nor does it imply that
Persimmon agrees with the concerns expressed by the CMA in the investigation. The commitments include an ex-gratia
financial contribution from all seven housebuilders to the Government’s Affordable Housing Programme totalling
£100m. Persimmon’s proportionate contribution was £15.2m.
On 30 October 2025, the CMA officially closed its investigation accepting binding commitments from the seven
housebuilders. The £15.2m ex-gratia contribution due from Persimmon was paid on 30 January 2026 and is reported
within Trade and other payable at 31 December 2025.
In total there was a net exceptional charge of £44.9m (2024: £34.4m) in the year, of which £55.0m (2024: £27.0m)
is non-cash related.
Given the non-recurring nature and scale, the net increase in the legacy buildings provision, the profit generated from
the sale of FibreNest, the Affordable Housing Programme contribution and the associated fees (£1.0m) have been
reported as exceptional to aid the understanding of the financial performance of the Group and to assist in the
comparability of financial performance between accounting periods.
Persimmon Plc Annual Report 2025 – 161Financial statementsGovernance Other informationStrategic report
7 Group acquisition of subsidiary undertaking
On 20 August 2025, the Group acquired 100% of the share capital of Lone Star Land Limited (Lone Star), a land
promoter that operates principally in the Midlands. Further details on the strategic rationale for the acquisition are
included in the Strategic Report on page 14.
Details of the purchase consideration, net identifiable assets acquired and the resulting provisional goodwill are
as follows:
2025
£m
Cash paid on acquisition date
3.4
Contingent consideration at fair value
12.0
Total purchase consideration
15.4
Net assets and liabilities recognised as a result of the acquisition
Intangible assets
7.9
Property, plant and equipment
0.1
Inventories
4.1
Trade and other receivables
0.6
Deferred tax liability
(1.4)
Trade and other payables
(6.4)
Net overdraft
(0.1)
Net identifiable assets acquired at provisional fair value
4.8
Provisional goodwill
10.6
Net assets acquired at provisional fair value
15.4
The assets and liabilities acquired have been recognised at their acquisition date provisional fair value, which may
be amended during the 12 months following acquisition. The fair value of trade and other receivables is equal to
the gross contractual amounts receivable.
Goodwill represents the value of intangible assets such as the expertise of the retained employees of Lone Star
and the geographical area and land contracts they have, that do not qualify for separate recognition under
accounting standards. For tax purposes, none of the goodwill arising will be deemed deductible.
Revenue of £1.9m and a profit contribution of £0.7m are recognised in the Consolidated Income Statement in
respect of Lone Star. If the acquisition had occurred on 1 January 2025, consolidated pro-forma revenue and
profit for the year ended 31 December 2025, based on Lone Star’s results for the year adjusted for intercompany
transactions and differences in accounting policies, would have been £3.2m and £0.1m.
The Group’s cash outflow in respect of the acquisition is as follows:
2025
£m
Cash paid on acquisition date
3.4
Net overdraft acquired
0.1
Net outflow of cash
3.5
As part of the acquisition £14.3m of the consideration is contingent and payable on satisfaction of obligations by the
previous shareholders. The amounts payable are fixed amounts per the acquisition contract. Management currently
assesses the likelihood of all obligations being satisfied as high and that all of the contingent consideration will be
payable. The fair value of the contingent consideration, after discounting, is reported within Other payables at the
31 December 2025.
There were no acquisitions in the year ended 31 December 2024.
8 Key management remuneration
Key management personnel, as disclosed under IAS 24 Related Party Disclosures, have been identified as the
Board of Directors. Detailed disclosures of individual remuneration, including the highest paid director for both
years, pension entitlements and share options for those Directors who served during the year, are given in the
Annual Report on Remuneration on pages 131 to 142. The aggregate key management remuneration is as follows:
2025 2024
£m £m
Short-term benefits
3.3
3.0
Share-based payments
2.2
2.3
5.5
5.3
Total gains on exercise of options by key management in the year amount to £0.8m (2024: £0.2m). There were no
termination payments to key management in 2025 or 2024.
9 Employees
Group
The average monthly number of persons (including Executive Directors) employed by the Group during the year
was 4,574 (2024: 4,537).
2025 2024
£m £m
Staff costs (for the above persons):
Wages and salaries
262.7
246.3
Social security costs
33.4
29.9
Pensions charge
16.2
11 . 4
Share-based payments
7.2
7.1
319.5
294.7
The Group also uses the services of a substantial number of self-employed labour-only site operatives.
Financial statementsGovernance Other informationStrategic report162 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
9 Employees continued
Company
The average monthly number of persons (including Executive Directors) employed by the Company during the
year was 563 (2024: 525).
2025 2024
£m £m
Staff costs (for the above persons):
Wages and salaries
55.5
50.2
Social security costs
8.0
6.6
Pensions charge
3.9
4.0
Share-based payments
3.9
3.6
71.3
64.4
10 Net finance expense
2025 2024
£m £m
Recognised in profit after tax
Interest receivable on bank deposits
1.2
2.6
Net gains on shared equity loan receivables
0.7
1.5
Net interest on pension asset
7.2
5.7
Other interest receivable
2.3
1.3
Finance income
11 . 4
11 . 1
Interest expense on bank overdrafts and loans
(17.1)
(8.2)
Imputed interest on deferred land payables
(12.0)
(3.8)
Imputed interest on legacy building provision
(7.0)
(7.4)
Interest on partnership liability
(0.8)
(0.9)
Other interest payable
(1.0)
(0.9)
Finance costs
(37.9)
(21.2)
Net finance expense
(26.5)
(10.1)
11 Profit from operations
2025 2024
£m £m
Profit from operations is stated after charging/(crediting):
Staff costs (note 9)
319.5
294.7
Profit on sale of land holdings
(17.1)
(5.7)
Government grants
(0.2)
(2.4)
Rent receivable
(3.6)
(3.2)
Profit on sale of property, plant and equipment
(1.5)
(2.5)
Depreciation of owned assets
21.1
20.1
Impairment of intangible assets
3.4
1.6
The Group received Government grants totalling £nil (2024: £1.8m) in the year.
Amounts payable to the auditor, Ernst & Young LLP, and their associates in respect of:
2025 2024
£000 £000
Audit fees
Audit of the Parent Company and consolidated financial statements
792
802
Audit of the Company’s subsidiaries pursuant to legislation
40
35
Total fees for the audit of the Company and its subsidiaries
832
837
Non-audit fees
Audit related assurance services
96
96
Non-audit related fees
79
78
Total non-audit fees
175
174
1,007
1 , 0 11
The extent of non-audit fees and non-audit related service fees payable to Ernst & Young LLP and its affiliated
entities is reviewed by the Audit & Risk Committee in the context of fees paid by the Group to its other advisors
during the year. The Committee also reviews the nature and extent of non-audit services to ensure that
independence is maintained.
Fees to major firms of accountants other than Ernst & Young LLP and its affiliated entities for non-audit services
amounted to £161,659 (2024: £911,764).
Persimmon Plc Annual Report 2025 – 163Financial statementsGovernance Other informationStrategic report
12 Tax
12.1 Analysis of tax charge for the year
2025 2024
£m £m
Tax charge comprises:
UK corporation tax in respect of the current year
95.8
78.8
Residential Property Developer Tax (‘RPDT’) in respect of the current year
13.7
12.3
Adjustments in respect of prior years
(0.7)
(9.1)
108.8
82.0
Deferred tax relating to origination and reversal of temporary differences
5.8
13.7
Adjustments recognised in the current year in respect of prior year’s deferred tax
(3.0)
(3.7)
2.8
10.0
Tax charge for the year recognised in statement of comprehensive income
111. 6
92.0
The tax charge for the year of £111.6m includes a credit of £11.5m relating to the exceptional items detailed in
note 6. The Group has agreed to waive the tax deductibility of the £15.2m contribution to the Affordable Homes
Programme. In addition, the profit on disposal of the FibreNest business is not subject to corporation tax due to the
availability of reliefs.
The tax charge for the year can be reconciled to the accounting profit as follows:
2025 2024
£m £m
Profit from continuing operations
397.3
359.1
Tax calculated at UK standard corporation tax rate of 29% (inclusive of RPDT)
(2024: 29.0%)
115.3
104.1
Goodwill impairment losses that are not deductible
1.0
0.5
Expenditure not allowable for tax purposes
2.2
2.1
Items not deductible for RPDT
(1.6)
(0.3)
Enhanced tax reliefs
(1.6)
(1.6)
Adjustments in respect of prior years
(3.7)
(12.8)
Tax charge for the year recognised in statement of comprehensive income
111. 6
92.0
The tax charge for the year includes both current and deferred tax. The tax charge is based upon the expected tax
rate for the full year, which is applied to taxable profits for the year, together with any charge or credit in respect of
prior years and the tax impact of one-off/non-recurring items arising in the same year. Current tax includes both UK
corporation tax and the Residential Property Developer Tax (RPDT).
Deferred Tax is calculated as the tax payable or recoverable in future accounting periods in respect of temporary
differences which may be taxable or allowed as deductible. Temporary differences represent the difference between
the carrying amount of an asset or liability in the financial statements and the relevant tax base.
The effective rate of tax for the period was 28.1% which was higher than in the prior year (2024: 25.6%) primarily as
a result of deductions arising in the 2024 calculation from the finalisation of prior year tax returns, including one-off
items in respect to the treatment of building safety remediation provisions.
12.2 Deferred tax recognised in other comprehensive expense (note 25)
2025 2024
£m £m
Recognised on remeasurement loss on pension schemes
(1.9)
(0.4)
12.3 Tax recognised directly in equity
2025 2024
£m £m
Arising on transactions with equity participants
Current tax related to equity settled transactions
0.6
(0.1)
Deferred tax related to equity settled transactions (note 25)
(3.1)
0.9
(2.5)
0.8
UK adoption of OECD Pillar 2: There is no impact from the implementation of the UK’s domestic top-up tax, as the
Group does not have any profits arising in any entities which are located in a non-UK jurisdiction, and which are
taxed below the minimum rate of tax of 15%.
13 Dividends/return of capital
2025 2024
£m £m
Amounts recognised as distributions to capital holders in the period:
2023 final dividend to all shareholders of 40p per share paid 2024
—
127. 9
2024 interim dividend to all shareholders of 20p per share paid 2024
—
63.9
2024 final dividend to all shareholders of 40p per share paid 2025
128.1
—
2025 interim dividend to all shareholders of 20p per share paid 2025
64.0
—
Total capital return
192.1
191. 8
The Directors propose a 40p final dividend in respect of the financial year 31 December 2025 to shareholders
for each ordinary share held on the register on 19 June 2026 with payment made on 10 July 2026. The total
anticipated distributions to shareholders is 60p per share (2024: 60p per share) in respect of the financial year
ended 31 December 2025.
The Parent Company received £nil dividends from wholly owned subsidiary undertakings during 2025 (2024: £nil).
Financial statementsGovernance Other informationStrategic report164 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
14 Earnings per share
Basic earnings per share is calculated by dividing the profit for the year attributable to ordinary shareholders by
the weighted average number of ordinary shares in issue during the year, excluding those held in the employee
benefit trusts (see note 26) and any treasury shares, all of which are treated as cancelled, which were 320.1m
(2024: 319.6m).
Diluted earnings per share is calculated by dividing the profit for the year attributable to ordinary shareholders by
the weighted average number of ordinary shares in issue adjusted to assume conversion of all potentially dilutive
ordinary shares from the start of the year, giving a figure of 323.8m (2024: 323.1m).
Underlying earnings per share excludes the net exceptional charge and goodwill impairment. The earnings per
share from continuing operations were as follows:
2025
2024
Basic earnings per share
89.3p
83.6p
Underlying basic earnings per share
100.7p
92.1p
Diluted earnings per share
88.2p
82.7p
Underlying diluted earnings per share
99.6p
91.1p
The calculation of the basic and diluted earnings per share is based upon the following data:
2025 2024
£m £m
Underlying earnings attributable to shareholders
322.5
294.2
Net exceptional charge (net of tax)
(33.4)
(25.5)
Goodwill impairment
(3.4)
(1.6)
Earnings attributable to shareholders
285.7
267.1
15 Goodwill/intangible assets
During the year, the Group acquired the entire share capital of Lone Star Land Limited (note 7). Provisional
goodwill of £10.6m arising on the acquisition has been capitalised and allocated to the Group’s acquired land
promotion business. As part of the acquisition customer contracts valued at £7.9m were acquired and are reported
within Intangible assets. These contracts have been valued at the present value of future post tax net cash flows
and will be amortised over 5 years being the expected life of the contracts at the acquisition date.
Customer
Goodwill Brand contracts Software Other Total
Group £m £m £m £m £m £m
Cost
At 1 January 2024
412.8
60.0
—
—
1.9
474.7
Additions in the year
—
—
—
0.8
—
0.8
At 1 January 2025
412.8
60.0
—
0.8
1.9
475.5
Additions in the year
10.6
—
7.9
3.3
—
21. 8
Disposals in the year
—
—
—
(0.4)
—
(0.4)
At 31 December 2025
423.4
60.0
7. 9
3.7
1.9
496.9
Impairment/Amortisation
At 1 January 2024
307.4
—
—
—
1.9
309.3
Impairment losses for the year
1.6
—
—
—
—
1.6
At 1 January 2025
309.0
—
—
—
1.9
310.9
Charge for the year
—
—
—
0.1
—
0.1
Impairment losses for the year
3.4
—
—
—
—
3.4
At 31 December 2025
312.4
—
—
0.1
1.9
314.4
Carrying amount
At 31 December 2025
111 . 0
60.0
7.9
3.6
—
182.5
At 31 December 2024
103.8
60.0
—
0.8
—
164.6
Goodwill brought forward at the start of the year of £103.8m includes £85.7m (2024: £87.0m) which arose on
acquisitions before the date of transition to IFRSs and is retained at the previous UK GAAP amounts, subject to
being tested for impairment. £37.0m (2024: £37.0m) of this amount represented the brand value of Charles
Church, acquired with Beazer Group Plc in 2001.
Acquired brand values, including the brand value of Charles Church which is classified as goodwill as this was
acquired before the date of transition to IFRSs, are calculated based on discounted cash flows and are tested
annually for impairment. The remainder of goodwill is allocated to acquired strategic land holdings and is tested
annually for impairment.
Persimmon Plc Annual Report 2025 – 165Financial statementsGovernance Other informationStrategic report
15 Goodwill/intangible assets continued
The recoverable amounts of the intangibles are determined from value in use calculations. Goodwill is allocated
for impairment testing purposes down to a lower level than the Group’s single operating segment, being to Charles
Church and to the portfolios of strategic land holdings throughout the UK acquired with Beazer and Westbury.
The key assumptions for value in use calculations are those regarding discount and growth rates. Growth rates
incorporate volume, selling price and direct cost changes.
The Group prepares cash flow forecasts derived from the most recent financial forecasts approved
by management to form the basis of the Group’s five-year business plan.
When performing the impairment review of the brands, the relevant retraction/growth rates included therein vary
between 2% and 15% (2024: 3% and 10%), reflecting the economic uncertainties associated with the ongoing
war in Ukraine and the cost of living crisis which is affecting the UK economy and the UK housing industry.
The retraction/growth rates in relation to the impairment review of goodwill allocated to strategic land holdings
vary between 0% and 6% (2024: -2% and 6%).
After this period the growth rates applied to calculate the cash flow forecasts is 1% (2024: 1%) reflecting
management’s estimate of the forecast recovery in the UK housing market, which do not exceed the long-term
average growth rates for the industry.
Management used pre-tax discount factors between 5% and 9% (2024: 5% and 10%) over the forecast periods.
The goodwill allocated to acquired strategic land holdings is further tested by reference to the proportion of
legally completed plots in the period compared to the total plots which are expected to receive satisfactory
planning permission in the remaining strategic land holdings, taking account of historical experience and market
conditions. This review resulted in an underlying impairment of £3.4m (2024: £1.6m). This charge reflects ongoing
consumption of the acquired strategic land holdings. The effect of testing goodwill for impairment in the manner
set out is that the goodwill will be completely impaired once the final plot for which management expects to
receive a satisfactory planning permission is sold. The timescale for full impairment to occur is difficult to calculate;
however, based on current estimates, it is believed this will take over 20 years.
On concluding the annual impairment testing, there remains £46.6m (2024: £48.7m) and £16.8m (2024: £18.1m)
of Beazer and Westbury goodwill allocated to strategic land holdings and £37.0m (2024: £37.0m) allocated to
the Charles Church brand. In addition, there is £60.0m (2024: £60.0m) of carrying value in relation to the
Westbury brand.
No reasonable possible change in any of the assumptions noted above would lead to an impairment charge
being required. However, in the event of deterioration in the UK housing market conditions, operating margins
reducing, or appropriate discount rates increasing, the possibility of impairment losses in the future remains.
Software has been developed for the purpose of site productivity improvement by the Group during the year.
Other intangible assets include know-how and customer contracts acquired on acquisition of subsidiary
companies, and computer software developed by the Group.
Other intangible assets and software are recorded at directly attributable costs determined at the time of
acquisition/development. Other intangible assets and software are amortised on a straight line basis over
a period of 5 years from the point where fully operational. Other intangible assets and software are reviewed
for impairment when there is a triggering event.
Trademark Software Total
Company £m £m £m
Cost
At 1 January 2024
5.0
—
5.0
Additions in the year
—
0.7
0.7
At 1 January 2025
5.0
0.7
5.7
Additions in the year
—
3.0
3.0
At 31 December 2025
5.0
3.7
8.7
Amortisation
At 1 January 2024
4.7
—
4.7
Charge for the year
0.3
—
0.3
At 1 January 2025
5.0
—
5.0
Charge for the year
—
0.1
0.1
At 31 December 2025
5.0
0.1
5.1
Carrying amount
At 31 December 2025
—
3.6
3.6
At 31 December 2024
—
0.7
0.7
Financial statementsGovernance Other informationStrategic report166 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
16 Property, plant and equipment
Land and Fixtures and
buildings Plant fittings Total
Group £m £m £m £m
Cost
At 1 January 2024
60.2
156.8
47.7
264.7
Additions
4.2
15.9
16.5
36.6
Disposals
(5.4)
(17.0)
(1.1)
(23.5)
At 1 January 2025
59.0
155.7
63.1
277.8
Additions
1.9
22.9
17.6
42.4
Disposals
(0.5)
(47.2)
(39.3)
(87.0)
At 31 December 2025
60.4
131.4
41.4
233.2
Accumulated depreciation
At 1 January 2024
13.2
88.5
22.5
124.2
Charge for the year
2.4
12.3
5.4
20.1
Disposals
(3.2)
(16.8)
(1.1)
(21.1)
At 1 January 2025
12.4
84.0
26.8
123.2
Charge for the year
2.3
13.3
5.5
21. 1
Disposals
(0.5)
(15.4)
(10.6)
(26.5)
At 31 December 2025
14.2
81.9
21. 7
117. 8
Carrying amount
At 31 December 2025
46.2
49.5
19.7
115.4
At 31 December 2024
46.6
71. 7
36.3
154.6
At 31 December 2025, the Group had £0.5m of contractual commitments for the acquisition of property,
plant and equipment (2024: £1.8m).
Within additions for the year are £5.0m of right-of-use assets (2024: £5.1m). At 31 December 2025
a right-of-use asset of £14.0m is reported within property, plant and equipment (2024: £13.5m).
Land and Fixtures and
buildings Plant fittings Total
Company £m £m £m £m
Cost
At 1 January 2024
2.8
2.0
10.9
15.7
Additions
—
0.7
3.8
4.5
Disposals
—
(0.1)
(0.1)
(0.2)
At 1 January 2025
2.8
2.6
14.6
20.0
Additions
1.0
0.6
8.0
9.6
Disposals
—
(0.1)
—
(0.1)
At 31 December 2025
3.8
3.1
22.6
29.5
Accumulated depreciation
At 1 January 2024
0.9
1.3
5.2
7.4
Charge for the year
0.2
0.4
1.6
2.2
Disposals
—
—
(0.1)
(0.1)
At 1 January 2025
1.1
1.7
6.7
9.5
Charge for the year
0.2
0.4
2.4
3.0
At 31 December 2025
1.3
2.1
9.1
12.5
Carrying amount
At 31 December 2025
2.5
1.0
13.5
17. 0
At 31 December 2024
1.7
0.9
7.9
10.5
17 Investments
17.1 Investments accounted for using the equity method
Investments
Investments in joint
in associates ventures
£m £m
Cost
At 1 January 2024
0.7
0.3
Written off in the year
(0.7)
—
At 1 January 2025 and 31 December 2025
—
0.3
Persimmon Plc Annual Report 2025 – 167Financial statementsGovernance Other informationStrategic report
17 Investments continued
17.1 Investments accounted for using the equity method continued
Investments in associates and joint ventures are accounted for under the equity method of accounting. All principal
joint ventures have a single external partner holding a 50% interest giving an equal interest in the trade and net
assets of the joint ventures. There are no significant restrictions on these entities.
During 2024, a charge of £0.7m writing down of the value of the investment in TopHat Enterprises Limited to
£nil was recognised as an exceptional item – impairment of a financial asset in the Consolidated Statement of
Comprehensive Income. The write down being due a re-assessment of risks within the modular build sector.
The Group’s share of assets and liabilities of joint ventures is shown below:
2025 2024
£m £m
Non-current assets
0.3
0.1
Current assets
—
0.2
Net assets of joint ventures
0.3
0.3
17.2 Investments in subsidiaries
2025 2024
£m £m
Cost
At 1 January 2024, 31 December 2024 and 31 December 2025
3,540.7
3,540.7
Impairment
At 1 January 2024, 31 December 2024 and 31 December 2025
335.0
335.0
Net book value
At 1 January 2024, 31 December 2024 and 31 December 2025
3,205.7
3,205.7
The annual review of the carrying value of the investment in subsidiaries saw the Group undertake an impairment
review to ensure the carrying value of the investment was supportable. This resulted in £nil impairment issues
(2024: £nil impairment). Details of Group undertakings are set out in notes 33 and 34.
18 Shared equity loan receivables
2025 2024
Group £m £m
At 1 January
29.0
32.1
Settlements
(4.0)
(4.6)
Net gains
0.7
1.5
At 31 December
25.7
29.0
All gains/losses have been recognised in the Consolidated Statement of Comprehensive Income. Of the gains
recognised in finance income for the period £nil (2024: £nil) was unrealised.
Shared equity loan receivables comprise loans, largely with a ten-year term and variable repayment amounts,
provided as part of sales transactions that are secured by way of a second legal charge on the related property.
Loans are repayable at the borrower’s option, on sale or transfer of the related property or other redemption of
the first legal charge or at the end of the fixed term. The loans are recorded at fair value, being the estimated
future amount receivable by the Group, discounted to present day values.
The fair value of future anticipated cash receipts takes into account the Directors’ view of future house price
movements, the expected timing of receipts and the likelihood that a purchaser defaults on a repayment.
The Directors revisit the future anticipated cash receipts from the loans at the end of each financial reporting period.
The difference between the anticipated future receipt and the initial fair value is credited over the estimated deferred
term to finance income, with the loan increasing to its full expected cash settlement value on the anticipated receipt
date. Credit risk, which the Directors currently consider to be largely mitigated through holding a second legal
charge over the assets, is accounted for in determining fair values and appropriate discount factors are applied.
The Directors expect an average maturity profile of between five and ten years from the balance sheet date.
Further disclosures relating to loans are set out in note 24.
19 Inventories
2025 2024
Group £m £m
Land
2,592.0
2,265.6
Work in progress
1,634.0
1,426.3
Part exchange properties
198.8
154.4
Showhouses
67.5
56.5
4,492.3
3,902.8
The Directors consider all inventories to be essentially current in nature although the Group’s operational cycle is
such that a proportion of inventories will not be realised within 12 months. It is not possible to determine with
accuracy when specific inventory will be realised as this is subject to a number of issues, including consumer
demand and planning permission delays.
The Group conducted a further review of the net realisable value of its land and work in progress portfolio at
31 December 2025. Our approach to this review has been consistent with that conducted at 31 December 2024.
This review gave rise to a reversal of £4.0m (2024: £nil) of provision on land that were written down in a previous
accounting period and an impairment of land of £3.1m (2024: £nil). Net realisable provisions held against
inventories at 31 December 2025 were £15.7m (2024: £16.8m).
The key judgements in estimating the future net realisable value of a site were the estimation of likely sales prices,
house types and costs to complete the developments. Sales prices and costs to complete were estimated on a
site-by-site basis based upon existing market conditions. If the UK housing market were to improve or deteriorate
in the future then further adjustments to the carrying value of land and work in progress may be required. Following
the 2025 review, £37.0m (2024: £26.4m) of inventories are valued at net realisable value rather than at historical
cost. No reasonable change in assumptions would lead to further impairment at the balance sheet date.
Land with a carrying value of £1,397.2m (2024: £1,043.2m) was used as security for land payables (note 21).
The value of inventories expensed in 2025 and included in cost of sales was £2,922.7m (2024: £2,442.6m).
Financial statementsGovernance Other informationStrategic report168 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
20 Trade and other receivables
Group Group Company Company
2025 2024 2025 2024
Non-current assets £m £m £m £m
Other receivables
1.9
—
—
—
Amounts owed by Group undertakings
—
—
2,055.8
2,045.6
1.9
—
2,055.8
2,045.6
Group Group Company Company
2025 2024 2025 2024
Current assets £m £m £m £m
Trade receivables
179.4
116.5
1.5
0.4
Other receivables
41.0
15.2
25.4
18.8
Prepayments and accrued income
29.5
36.1
8.7
9.4
249.9
167.8
35.6
28.6
Trade and other receivables are non-interest bearing, and the Group applies a simplified approach in calculating
expected credit losses. The Group does not track changes in credit risk, but instead recognises a loss allowance
based on lifetime expected credit losses at each reporting date. The Directors consider that the carrying value of
trade receivables approximates to their fair value.
No allowance for expected credit losses is deemed necessary in respect of amounts owed by Group undertakings.
2025 2024
Ageing of overdue but not impaired receivables £m £m
Less than 3 months
15.9
13.4
Over 3 months
2.1
4.3
18.0
17.7
The carrying value of trade and other receivables is stated after the following allowance for expected credit losses:
2025 2024
Group £m £m
At 1 January
2.3
2.2
Allowance for expected credit losses charged
—
0.4
Amounts written off during the year as uncollectable
(0.1)
(0.3)
At 31 December
2.2
2.3
21 Borrowings
Detailed disclosure of the Group’s usage of financial instruments is included in note 24. There are £nil borrowings
at 31 December 2025 (2024: £nil).
The contractual repayment terms of facilities are as noted below:
Nominal Year of 2025 2024
Currency interest rate maturity £m £m
Revolving Credit Facility
GBP
SONIA
2030
700.0
700.0
+1.25%–2.30%
Total Available facilities
781.0
751. 0
The interest rate applicable to the syndicated loan may increase dependent upon the Group’s gearing level.
On 26 January 2026 the RCF facility was amended, increasing the loan facility from £700m to £750m with a
term to 6 July 2030, and securing a further £250m fixed term facility to 31 January 2028, giving an increased
total secured funding of £1,000m.
22 Trade and other payables
Group Group Company Company
2025 2024 2025 2024
Non-current liabilities £m £m £m £m
Land payables
269.8
183.3
—
—
Other payables
13.3
12.9
2.9
2.3
283.1
196.2
2.9
2.3
Group Group Company Company
2025 2024 2025 2024
Current liabilities £m £m £m £m
Trade payables
475.4
277. 7
7.2
4.1
Land payables
353.6
239.9
—
—
Other payables
81.0
65.9
23.8
21 . 2
Accrued expenses
213.8
222.8
26.2
10.5
Amounts owed to Group undertakings
—
—
3,829.0
3,760.9
1,123.8
806.3
3,886.2
3,796.7
Trade payables subject to payment terms were 39 days (2024: 22 days), based on the ratio of year end trade
payables (excluding retentions and unagreed claims) to amounts invoiced during the year by trade creditors. The
Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed
terms. The Directors consider that the carrying amount of trade payables approximates to their fair value.
Land payables are reduced for imputed interest, which is charged to the statement of comprehensive income over
the credit period of the purchase contract.
Included in other payables are £14.7m (2024: £14.5m) associated with right to use assets.
Persimmon Plc Annual Report 2025 – 169Financial statementsGovernance Other informationStrategic report
23 Legacy buildings provision
Group Group
2025 2024
£m £m
At 1 January
235.3
283.2
Additions to provision in the year
39.8
25.0
Imputed interest on provision in the year
7.0
7.4
Provision released in the year
—
(23.0)
Provision utilised in the year
(56.1)
(57.3)
At 31 December
226.0
235.3
In 2020 the Group made an initial commitment that no leaseholder living in a building we had developed should
have to cover the cost of removal of combustible cladding. During 2022 we signed the Building Safety Pledge
(England) and worked constructively with the Government to agree the ‘Long-Form Contract’ that turned the
pledge into a legal agreement. The Self Remediation Contract was signed on 13 March 2023. In December 2025
we were the first housebuilder to sign the Scottish Government’s developer remediation contract.
In the year we have been informed by management companies of further potential liabilities for fire remediation
costs, and we have added four developments to the total number of developments. The number of developments
we are now responsible for stands at 87, of which 43 have now either secured EWS1 certificates or concluded
any necessary works. It is assumed the majority of the work will be completed over the next two years and the
amount provided for has been discounted accordingly.
During the year £56.1m of the provision has been utilised for works undertaken whilst £7.0m of imputed interest
has been charged to the statement of comprehensive income through finance costs. During the year £39.8m has
been charged, following a review of the projected costs to complete rectification work. This includes estimation of
the costs of rectification of the four additional developments requiring remediation and additional complications
and works identified once site works commenced and facades stripped, offset by works assumed by, and recoveries
secured from, historic subcontractors. Due to the non-recurring nature of these charges they have been disclosed
as exceptional items to support the understanding of the financial performance and improve the comparability
between reporting periods.
Based on current cash flow forecasts management forecast that £83.2m of the provision will be utilised within the
next 12 months and as a result has been reported as a current liability in the 31 December 2025 balance sheet.
The assessment of the provision remains a highly complex area with judgements and estimates in respect of the
cost of the remedial works, with investigative surveys on-going to determine the full extent of those required works.
Where remediation works have not yet been fully tendered, we have estimated the likely scope and costs of such
works based on experience of other similar sites. Whilst we have exercised our best judgement of these matters,
there remains the potential for variations to this estimate from multiple factors such as material, energy and labour
cost inflation, limited qualified contractor availability and abnormal works identified on intrusive surveys. Should
a 20% variation in the costs of uncontracted projects occur then the overall provision would vary by +/- £17.2m.
The financial statements have been prepared on the latest available information; however, there remains the
possibility that, despite management’s endeavours to identify all such properties, including those constructed
by acquired entities well before acquisition, further developments requiring remediation may emerge.
The company has no provisions.
Identified developments
As of 31 Dec 2025
As of 31 Dec 2024
Recently made aware and under investigation
1
1
Pre-tender preparation on-going
4
9
Live tender process
3
—
Sub-total: progressing through tender
8
10
Progressing to contract
8
8
Contracted but works yet to start
4
4
Sub-total: pre-works starting
20
22
Currently on site
24
21
Sub-total: to complete
44
43
Completed developments
43
40
Total identified developments
87
83
24 Financial risk management
The Group has exposure to the following risks from its use of financial instruments:
·
market risk;
·
liquidity risk;
·
capital risk; and
·
credit risk.
This note presents basic information regarding the Group’s exposure to these risks and the Group’s objectives,
strategy and processes for measuring and managing exposure to them. Unless otherwise stated references to
the Group should be considered to apply to the Company as well.
The Board has overall responsibility for the assessment and effective management of the Group’s risks.
Comprehensive processes are in place to identify, monitor, mitigate and control risks, through the work of the
Audit & Risk Committee, Group Internal Audit department and operational management teams. This includes a
wide-ranging annual survey of the Board and senior management in order to assess key risk issues and emerging
risks. Collectively, these processes provide the Board with visibility of the Group’s full risk landscape, while remaining
focused on the most significant threats and trends, and allow for the effective deployment of supporting controls.
Financial statementsGovernance Other informationStrategic report170 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
24 Financial risk management continued
Market risk
Market risk represents the potential for changes in foreign exchange prices and interest rates to affect the Group’s
profit and the value of its financial instruments. It also incorporates the effect of the overall UK housing market on
the Group. The Group’s objective in market risk management is to minimise its exposures to fluctuations within such
variables whilst optimising returns.
The Group has no significant direct currency exposures.
Interest rate risk
The Group currently holds no fixed interest borrowings. This reflects the low borrowing requirements of the Group.
The Group has no formal target for a ratio of fixed to floating funding. The responsibility for setting the level of
fixed rate debt lies with the Board and is regularly reviewed in light of economic data provided by a variety of sources.
Sensitivity analysis
If in the year ended 31 December 2025 UK interest rates had been 1.0% higher/lower than the Group’s pre-tax
profit would have increased/decreased by £2.2m (2024: increased/decreased by £nil). The Group’s post-tax
profit would have increased/decreased by £1.6m (2024: increased/decreased by £nil). The Group’s cash
balance in 2025 would have increased/decreased by £0.4m (2024: £0.8m) if interest rates had been 1.0%
higher/lower. This is offset by the interest charge on the Revolving Credit Facility used in the year which would
have increased/decreased by £2.6m (2024: £0.8m) if interest rates had been 1.0% higher/lower.
These sensitivities have been prepared in respect of the direct impact of such an interest rate change on the
financing expense of financial instruments only, and do not attempt to estimate the indirect effect such a change
may have on the wider economic environment such as house pricing, mortgage availability and exchange rates.
Housing market risk
The Group is fundamentally affected by the level of UK house prices. These in turn are affected by factors such
as credit availability, employment levels, interest rates, consumer confidence and supply of land with planning.
Whilst it is not possible for the Group to fully mitigate such risks on a national macroeconomic basis the Group
does continually monitor its geographical spread within the UK, seeking to balance its investment in areas offering
the best immediate returns with a long-term spread of its operations throughout the UK to minimise the risk of local
microeconomic fluctuations. The Group has taken steps to control its speculative build and land acquisition
activities and work in progress levels so as to manage the exposure of the Group to any further market disruption.
Sensitivity analysis
At 31 December 2025, if UK house prices had been 10% higher/lower, and all other variables were held
constant, the Group’s house price linked financial instruments, which are solely shared equity loan receivables,
would increase/decrease in value, excluding any effects of current or deferred tax, by £0.1m (2024: £0.2m).
Liquidity risk
Liquidity risk reflects the risk that the Group will have insufficient resources to meet its financial obligations as they
fall due. The Group’s strategy in relation to managing liquidity risk is to ensure that the Group has sufficient liquid
funds to meet all its potential liabilities as they fall due.
This is true not only of normal market conditions but also of negative projections against expected outcomes,
so as to avoid any risk of incurring contractual penalties or damaging the Group’s reputation, which would in
turn reduce the Group’s ability to borrow at optimal rates. Therefore the Group remains confident of its continued
compliance with financial covenants under the Revolving Credit Facility even in the event of deterioration in market
conditions. Further information on the Group’s liquidity forecast process is included in the Viability Statement on
pages 77 to 79.
The Group has entered into a number of deferred payment guarantees and performance bonds in the normal
course of operations. The liabilities to which these guarantees relate are recognised and accounted for in
accordance with our standard accounting policies.
Liquidity forecasts are produced on (i) a daily basis to ensure that utilisation of current facilities is optimised;
(ii) a monthly basis to ensure that covenant compliance targets and medium-term liquidity are maintained;
and (iii) a long-term projection basis for the purpose of identifying long-term strategic funding requirements.
The Directors also continually assess the balance of capital and debt funding of the Group. They consider the
security of capital funding against the potentially higher rates of return offered by debt financing in order to set
an efficient but stable balance appropriate to the size of the Group.
The Group operates short-term uncommitted overdraft facilities to meet day-to-day liquidity requirements.
These facilities are cancellable on request from the bank; however, the Group generally maintains low levels of
borrowing on these in favour of secured facilities. These overdraft facilities are provided by five leading clearing
banks to minimise exposure to any one lender.
On 6 July 2023 the Group signed a new undrawn Revolving Credit Facility (‘RCF’) of £700m which had a
five-year term to 5 July 2028, this was subsequently extended on 30 May 2025 to 6 July 2030. We continue to
receive good support from banking partners, with a consortium of five participating banks. The RCF is a
‘Sustainability Linked’ facility within the banks’ finance frameworks, with ESG targets covering the facility’s term. The
targets are consistent with the Group’s science-based operational carbon reduction targets, our commitment to
deliver net zero homes in use by 2030 and our long-standing ambition to deliver excellent development
opportunities for our colleagues. This committed facility is sufficient to meet projected liquidity requirements for the
duration of the facility. Undrawn committed facilities at the reporting date amount to £700m (2024: £700m).
On 26 January 2026 the RCF facility was amended, increasing the base facility from £700m to £750m with a
term to 6 July 2030, and securing a further £250m fixed term facility to 31 January 2028, giving an increased
total secured funding level of £1,000m.
Cash deposits
The Group has a policy of ensuring cash deposits are made with the primary objective of security of principal.
Accordingly deposits are made only with approved, respected, high credit rating financial institutions. Deposits
are spread across such institutions to minimise exposure to any single entity and are made on a short-term basis
only to preserve liquidity.
Persimmon Plc Annual Report 2025 – 171Financial statementsGovernance Other informationStrategic report
24 Financial risk management continued
Capital risk
The capital structure of the Group consists of net cash/debt (borrowings as detailed in note 21 offset by cash and
bank balances) and equity of the Group (comprising issued capital, reserves and retained earnings as detailed in
the Statement of Changes in Shareholders’ Equity). The Group’s objective in managing capital is primarily to
ensure the continued ability of the Group to meet its liabilities as they fall due whilst also maintaining an appropriate
balance of equity and borrowings and minimising costs of capital. Close control of deployment of capital is maintained
by detailed management review procedures for authorisation of significant capital commitments, such as land
acquisition, capital targets for local management and a system of internal interest recharges, ensuring capital
cost impact is understood and considered by all management tiers.
Decisions regarding the balance of equity and borrowings, dividend policy and all major borrowing facilities are
reserved for the Board. The Group is currently pursuing a strategy of capital return to shareholders, whilst at the
same time building a stronger, larger business. Full details are available in the Strategic Report on pages 1 to 79.
The following are the contractual maturities of financial liabilities, including interest payments (not discounted):
2025
Carrying Contractual Less than 1–2 2–5 Over
amount cash flows 1 year years years 5 years
Group £m £m £m £m £m £m
Trade and other payables
783.5
788.9
760.2
19.2
5.0
4.5
Land payables
623.4
660.6
379.6
152.2
120.0
8.8
Partnership liability
16.8
17. 0
11 . 3
5.7
—
—
Financial liabilities
1,423.7
1,466.5
1,151.1
17 7.1
125.0
13.3
2024
Carrying Contractual Less than 1–2 2–5 Over
amount cash flows 1 year years years 5 years
Group £m £m £m £m £m £m
Trade and other payables
579.5
583.6
567.3
6.2
4.8
5.3
Land payables
423.2
448.8
265.5
100.1
76.6
6.6
Partnership liability
15.9
17.0
5.6
5.7
5.7
—
Financial liabilities
1,018.6
1,049.4
838.4
112.0
87.1
11 . 9
2025
Carrying Contractual Less than 1–2 2–5 Over
amount cash flows 1 year years years 5 years
Company £m £m £m £m £m £m
Trade and other
payables (including
intercompany balances)
3,889.1
3,889.2
3,886.3
2.6
0.3
—
Financial liabilities
3,889.1
3,889.2
3,886.3
2.6
0.3
—
It is noted that £3,829.0m (2024: £3,760.9m) of other payables refer to amounts owed to subsidiary
undertakings. Whilst generally repayable upon demand, in practice it is unlikely there will be any required
repayment in the short-term.
2024
Carrying Contractual Less than 1–2 2–5 Over
amount cash flows 1 year years years 5 years
Company £m £m £m £m £m £m
Trade and other
payables(including
intercompany balances)
3,799.3
3,799.3
3,797.9
0.6
0.8
—
Financial liabilities
3,799.3
3,799.3
3,797.9
0.6
0.8
—
Credit risk
The nature of the UK housing industry and the legal framework surrounding it results in the Group having a low
exposure to credit risk.
In all but a minority of cases the full cash receipt for each sale occurs on legal completion, which is also the point
of revenue recognition under the Group’s accounting policies.
In certain specific circumstances the Group has entered into shared equity arrangements (not applicable to the
Company). The pressures of market conditions during recessionary periods necessitated an increase in this form
of sales structure from 2008. In such cases the long-term debt is secured upon the property concerned. The Group
does not recognise collateral rights as a separate asset, nor does it have rights to trade such collateral. Reductions
in property values leads to an increase in the credit risk of the Group in respect of such sales. There was a £0.5m
requirement for a charge in relation to credit impairment in the year (2024: £0.2m).
Financial statementsGovernance Other informationStrategic report172 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
24 Financial risk management continued
Credit risk continued
The maximum total credit risk is as follows:
2025 2024
Group £m £m
Trade and other receivables
222.3
131. 7
Shared equity loan receivables
25.7
29.0
Cash and cash equivalents
117. 0
258.6
365.0
419.3
2025 2024
Company £m £m
Loans and receivables (including intercompany balances)
2,082.7
2,064.8
Cash and cash equivalents
62.0
182.0
2,144.7
2,246.8
The maximum credit exposure of the Group to overseas parties is £nil (2024: £nil) (Company: £nil (2024: £nil)).
The Group’s credit risk is widely distributed. The maximum credit risk should any single party (excepting financial
institutions) fail to perform is £5.0m (2024: £35.1m) and was due in December 2025 (Company: £1,439.5m
(2024: £1,439.5m) being a subsidiary debtor). The Directors consider these financial assets to be of high quality
and the credit risk is assessed as low. The maximum credit risk associated with a financial institution in respect of
short-term cash deposits is £30.0m (2024: £69.6m).
Fair value
The fair value of financial assets and liabilities is as follows:
2025
2024
Fair value Carrying value Fair value Carrying value
Group £m £m £m £m
Trade and other receivables
222.3
222.3
131. 7
131. 7
Shared equity loan receivables
25.7
25.7
29.0
29.0
Cash and cash equivalents
117. 0
117. 0
258.6
258.6
Trade and other payables
(783.5)
(783.5)
(579.3)
(579.3)
Land payables
(623.4)
(623.4)
(423.2)
(423.2)
Partnership liability
(17.0)
(16.8)
(17.0)
(15.9)
(1,058.9)
(1,058.7)
(600.2)
(599.1)
In aggregate, the fair value of financial assets and liabilities are not materially different from their carrying value.
2025
2024
Fair value Carrying value Fair value Carrying value
Company £m £m £m £m
Trade and other receivables (including
2,082.7
2,082.7
2,064.8
2,064.8
intercompany balances)
Cash and cash equivalents
62.0
62.0
182.0
182.0
Trade and other payables (including
intercompany balances)
(3,889.1)
(3,889.1)
(3,796.7)
(3,796.7)
(1,744.4)
(1,744.4)
(1,549.9)
(1,549.9)
Income and expense in relation to financial instruments are disclosed in note 10.
Financial assets and liabilities by category:
Group
Company
2025 2024 2025 2024
£m £m £m £m
Financial assets designated fair
value through statement of
comprehensive income
25.7
29.0
—
—
Trade and other receivables
222.3
131. 7
2,082.7
2,064.8
Cash and cash equivalents
117. 0
258.6
62.0
182.0
Financial liabilities at amortised cost
(1,423.7)
(1,018.4)
(3,889.1)
(3,796.7)
(1,058.7)
(599.1)
(1,744.4)
(1,549.9)
Financial assets and liabilities carried at fair value are categorised within the hierarchical classification of IFRS 13
Revised (as defined within the standard) as follows:
2025 2024
Level 3 Level 3
Group £m £m
Shared equity loan receivables
25.7
29.0
Other payables
(12.0)
—
Persimmon Plc Annual Report 2025 – 173Financial statementsGovernance Other informationStrategic report
24 Financial risk management continued
Shared equity loan receivables
Shared equity loan receivables represent loans advanced to customers and secured by way of a second charge
on their new home. They are carried at fair value. The fair value is determined by reference to the rates at which
they could be exchanged by knowledgeable and willing parties. Fair value is determined by discounting forecast
cash flows for the residual period of the contract by a risk adjusted rate.
There exists an element of uncertainty over the precise final valuation and timing of cash flows arising from
these loans. As a result the Group has applied inputs based on current market conditions and the Group’s
historical experience of actual cash flows resulting from such arrangements. These inputs are by nature
estimates and as such the fair value has been classified as level 3 under the fair value hierarchy laid out
in IFRS 13 Fair Value Measurement.
Significant unobservable inputs into the fair value measurement calculation include regional house price movements
based on the Group’s actual experience of regional house pricing and management forecasts of future movements,
weighted average duration of the loans from inception to settlement of ten years (2024: ten years) and discount
rate 7.5% (2024: 8.8%) based on current observed market interest rates offered to private individuals on secured
second loans.
The discounted forecast cash flow calculation is dependent upon the estimated future value of the properties on
which the shared equity loans are secured. Adjustments to this input, which might result from a change in the wider
property market, would have a proportional impact upon the fair value of the loan. Furthermore, whilst not easily
assessable in advance, the resulting change in security value may affect the credit risk associated with the
counterparty, influencing fair value further.
Detail of the movements in shared equity loan receivables in the period are disclosed in note 18.
Other payables
As part of the acquisition of Lone Star Land Limited, £14.3m of the consideration is contingent and payable on
satisfaction of obligations by the previous shareholders. The amounts payable are fixed amounts per the acquisition
contract. Given the nature of the obligations the previous shareholders face there exists an element of uncertainty
over the actual consideration that will be paid. Management currently assesses the likelihood of all obligations
being satisfied as high and that all of the contingent consideration will be payable. Since management’s assessment
of likelihood is an estimate, the fair value has been classed as Level 3 under the fair value hierarchy laid out in IFRS
13 Fair Value Measurement. A discount rate of 9.0% based on the Group’s weighted average cost of capital has
been applied. The fair value of the contingent consideration, after discounting, is reported within Other payables at
31 December 2025.
25 Deferred tax
The following are the deferred tax assets and liabilities recognised by the Group and the movements thereon
during the current and prior year:
Accelerated Retirement Other
tax benefit Share-based Intangible temporary
depreciation obligation payment assets differences Total
Note £m £m £m £m £m £m
At 1 January 2024
(8.2)
(36.9)
6.4
(17.4)
2.7
(53.4)
(Charge)/credit to
income statement
12.1
(7.4)
(1.4)
2.6
—
(3.8)
(10.0)
Credit to other
comprehensive income
12.2
—
0.4
—
—
—
0.4
Amounts taken directly
to equity
12.3
—
—
(0.9)
—
—
(0.9)
At 1 January 2025
(15.6)
(37.9)
8.1
(17.4)
(1.1)
(63.9)
(Charge)/credit to
income statement
12.1
(3.3)
(1.9)
0.9
—
1.5
(2.8)
Credit to other
comprehensive income
12.2
—
1.9
—
—
—
1.9
Amounts taken directly
to equity
12.3
—
—
3.1
—
—
3.1
On acquisition
—
—
—
—
(1.4)
(1.4)
On disposal
8.7
—
—
—
—
8.7
At 31 December 2025
(10.2)
(37.9)
12.1
(17.4)
(1.0)
(54.4)
As permitted by IAS 12 Income Taxes, certain deferred tax assets and liabilities have been offset. The following is
an analysis of the deferred tax balances (after offset) for financial reporting purposes:
2025 2024
£m £m
Share-based payments
12.1
8.1
Other items, including accelerated capital allowances
2.4
1.1
Deferred tax assets
14.5
9.2
Brands
(17.4)
(17.4)
Other items, including accelerated capital allowances
(51.5)
(55.7)
Deferred tax liabilities
(68.9)
(73.1)
Net deferred tax liability
(54.4)
(63.9)
The Group has recognised deferred tax liabilities of £37.9m (2024: liabilities of £37.9m) on retirement benefit
assets of £130.7m (2024: assets of £130.7m).
Financial statementsGovernance Other informationStrategic report174 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
25 Deferred tax continued
The following are the deferred tax assets and liabilities recognised by the Company and the movements thereon
during the current and prior year:
Accelerated tax Retirement benefit Share-based Other temporary
depreciation obligation payment differences Total
£m £m £m £m £m
At 1 January 2024
(0.2)
(36.9)
3.7
0.6
(32.8)
(Charge)/credit to
income statement
(0.6)
(1.4)
2.6
(0.2)
0.4
Credit to other
comprehensive income
—
0.4
—
—
0.4
Amounts taken directly
to equity
—
—
(0.5)
—
(0.5)
At 1 January 2025
(0.8)
(37.9)
5.8
0.4
(32.5)
(Charge)/credit to
income statement
(0.3)
(1.9)
0.9
1.0
(0.3)
Credit to other
comprehensive income
—
1.9
—
—
1.9
Amounts taken directly
to equity
—
—
2.0
—
2.0
At 31 December 2025
(1.1)
(37.9)
8.7
1.4
(28.9)
No deferred tax assets and liabilities have been offset (2024: £nil).
26 Share capital
2025 2024
£m £m
Allotted, called up and fully paid
320,681,126
(2024: 319,914,868) ordinary shares of 10p each
32.1
32.0
The Company has one class of ordinary shares which carry no right to fixed income. All issued shares are fully paid.
During the year 766,258 ordinary shares (2024: 493,452) were issued in satisfaction of share option exercises.
The Company has established an Employee Benefit Trust to hold shares for participants of the Company’s various
share schemes. The Trustee is Persimmon (Share Scheme Trustees) Limited, a subsidiary company. During 2025,
the Trustee transferred 187,790 shares (2024: 33,743) to employees. At 31 December 2025 the trust held
167,451 shares (2024: 162,241) on which dividends have been waived. The market value of these shares
at 31 December 2025 was £2,274,822 (2024: £1,943,647).
Own shares
Own shares held at cost are reconciled as follows:
Group
£m
Balance at 31 December 2024
1.0
Own shares purchased
2.3
Disposed of on exercise/vesting to employees
(2.3)
Balance at 31 December 2025
1.0
27 Reconciliation of net cash flow to net cash and analysis of net cash
2025 2024
Group £m £m
Cash and cash equivalents at 1 January
258.6
420.1
Decrease in net cash and cash equivalents in cash flow
(141.6)
(161.5)
Cash and cash equivalents at 31 December
117. 0
258.6
IFRS 16 lease liability
(14.7)
(14.5)
Net cash at 31 December
102.3
244.1
Net cash is defined as cash and cash equivalents, finance lease obligations and interest bearing borrowings.
28 Contingent liabilities
As disclosed in note 23 the Group has undertaken a review of all of its legacy buildings that used cladding on their facades.
The financial statements have been prepared on the latest available information; however, there remains the
possibility that, despite management’s endeavours to identify all such properties, including those constructed by
acquired entities
well before acquisition, further developments requiring remediation may emerge. There is also the
possibility that estimates
based on preliminary assessments regarding the scale of remediation works relating to
buildings yet to be fully surveyed may prove incorrect. The cost of remedial works will remain under review and
be updated as works progress.
Persimmon Plc Annual Report 2025 – 175Financial statementsGovernance Other informationStrategic report
29 Retirement benefit assets
As at 31 December 2025 the Group operated four employee pension schemes, being two Group personal
pension schemes and two defined benefit pension schemes. Remeasurement gains and losses in the defined
benefit schemes are recognised in full as other comprehensive income within the Consolidated Statement of
Comprehensive Income. All other pension scheme costs are reported in profit or loss.
Group personal pension schemes
The Group makes contributions to the Group personal pension schemes. Dependent upon an employee’s role
and length of service the Group may make contributions to the schemes of up to a maximum of 9% of basic salary
and a further 9% of employer contributions under an employee salary sacrifice arrangement. The Group has no
liability beyond these contributions. Group contributions to these schemes of £15.5m (2024: £9.8m) are expensed
through the statement of comprehensive income as incurred.
Persimmon Plc Pension & Life Assurance Scheme
The Persimmon Plc Pension & Life Assurance Scheme (the ‘Persimmon Scheme’) is a defined benefit scheme which
was closed to new members in 2001, and closed to all employees during 2024. Benefits accrue on a career
average revalued earnings basis. The assets of the Persimmon Scheme are held separately from those of the Group.
On 12 December 2012 Persimmon Plc made a one-off cash contribution of £57.8m to the Persimmon Scheme. The
Persimmon Scheme used these funds to invest in Persimmon Scottish Limited Partnership, which has undertaken to
provide fixed cash payments to the Persimmon Scheme to meet its liabilities over a 15-year period. See note 30
for further details.
Prowting Pension Scheme
The Group also operates the Prowting Pension Scheme (the ‘Prowting Scheme’), a defined benefit scheme.
Benefits accrue on a career average revalued earnings basis. The assets of the Prowting Scheme are held
separately from those of the Group.
Role of Trustees
Both the Persimmon Scheme and the Prowting Scheme (jointly the ‘Pension Schemes’) are managed by Trustees
who are legally separate from the Company. The Trustees are composed of representatives appointed by both the
employer and employees. The Trustees are required by law to act in the interest of all relevant beneficiaries and
are responsible in particular for the asset investment policy plus the day-to-day administration of the benefits. They
are also responsible for jointly agreeing with the employer the level of contributions due to the Pension Schemes
(see page 177).
Funding requirements
UK legislation requires that pension schemes are funded prudently, i.e. to a level in excess of the current expected
cost of providing benefits. The last funding valuation of the Persimmon Scheme was carried out by a qualified
actuary as at 1 January 2023 and as at 31 March 2024 for the Prowting Scheme. The next funding valuation will be
as at 1 January 2026
for the Persimmon Scheme and as at 31 March 2027 for the Prowting Scheme. Subsequent
valuations
will be at intervals of no more than three years thereafter.
Following each valuation, the Trustees and the Company must agree the contributions required (if any) to ensure
the Pension Schemes are fully funded over time on a suitable prudent measure. Contributions agreed in this
manner constitute a minimum funding requirement.
Given the current strength of the Persimmon and Prowting Scheme’s funding no deficit contributions are required
for either scheme. Salary related contributions for active members are payable for the Persimmon Scheme.
Under the governing documentation of the Pension Schemes, any future surplus in either scheme would be
returnable to the Group by refund, assuming gradual settlement of the liabilities over the lifetime of the Pension
Schemes. As a result the Group does not consider there to be an asset ceiling in respect of the Pension Schemes.
Both Pension Schemes are in a strong funding position. The Group remains committed to the continuity of this
position and will review future contribution levels in the event of any significant deficit arising.
The Pension Schemes’ investment strategy is to maintain a portfolio of suitable assets of appropriate liquidity which
will generate investment returns to meet, together with future contributions, the benefits of the members as they fall
due.* The Pension Schemes do not invest directly in complex financial instruments, though there may be limited
indirect investment through investment funds.
* Given the current financial strength of the Pension Schemes’ net asset position a low risk investment strategy is applied.
Regulation
The UK pensions market is regulated by The Pensions Regulator, whose key statutory objectives in relation to UK
defined benefit plans are:
·
to protect the benefits of members;
·
to promote, and to improve understanding of good administration; and
·
to reduce the risk of situations arising which may lead to compensation being payable from the Pension
Protection Fund (‘PPF’).
The Pensions Regulator has sweeping powers including the powers:
·
to wind up a scheme where winding up is necessary to protect members’ interests;
·
to appoint or remove a trustee;
·
to impose a schedule of company contributions or the calculation of the technical provisions where a trustee
and company fail to agree on appropriate contributions; and
·
to impose a contribution where there has been a detrimental action against a scheme.
Financial statementsGovernance Other informationStrategic report176 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
29 Retirement benefit assets continued
Risks associated with the Pension Schemes
The Pension Schemes expose the Group to a number of risks, the most significant of which are:
Risk
Description
Volatile The defined benefit obligation (‘DBO’) is calculated using a discount rate set with
asset returns reference to corporate bond yields. If assets underperform this discount rate, this will
create an element of deficit. The Persimmon Scheme no longer holds a significant
proportion of assets in growth assets (such as equities) which minimises but does not
eliminate asset valuation risk. The allocation to growth assets is monitored to ensure it
remains appropriate given the Pension Schemes’ long-term objectives.
Changes in A decrease in corporate bond yields will increase the value placed on the DBO for
bond yields accounting purposes, although this will be partially offset by an increase in the value
of the Pension Schemes’ bond holdings.
Inflation risk
A significant proportion of the DBO is indexed in line with price inflation and higher
inflation will lead to higher liabilities (although, in most cases, this is capped at an annual
increase of 5%).
Life expectancy
The majority of the Pension Schemes’ obligations are to provide benefits for the life of
the member, so increases in life expectancy will result in an increase in the liabilities.
There are a number of other risks of running the Pension Schemes including operational risks (such as paying out
the wrong benefits), legislative risks (such as the Government increasing the burden on pension through new
legislation) and other demographic risks, such as a higher proportion of members having a dependant eligible
to receive a survivor’s pension.
Net pension asset
The amounts included in the balance sheet arising from the Group’s obligations in respect of the Pension Schemes
are as follows:
2025 2024
£m £m
Fair value of Pension Scheme assets
502.0
504.3
Present value of funded obligations
(371.3)
(373.6)
Net pension asset
130.7
130.7
A deferred tax liability totalling £37.9m (2024: £37.9m) has been recognised on the balance sheet in relation
to the net pension asset.
Movements in the net pension asset on the balance sheet were as follows:
2025 2024
£m £m
As at 1 January
130.7
127. 1
Total gain recognised in the period
—
3.5
Company contributions paid in the period
—
0.1
As at 31 December
130.7
130.7
The Group has recognised a net pension asset on the basis that under the rules of the schemes any future surplus
would be returnable to the Group by refund, assuming gradual settlement over the lifetime of the schemes.
The Company does not present valuations of its own separate assets and liabilities under the Pension Schemes as the
entire net assets of the Pension Schemes are included in the Company balance sheet, as ultimate scheme sponsor.
The amounts recognised in the Consolidated Statement of Comprehensive Income are as follows:
2025 2024
£m £m
Current service cost
—
0.2
Administrative expense
0.5
0.4
Curtailment cost
—
0.1
Pension cost recognised as operating expense
0.5
0.7
Interest cost
20.0
18.6
Return on assets recorded as interest
(27.2)
(24.3)
Pension cost recognised as net finance credit
(7.2)
(5.7)
Total defined benefit pension credit recognised in profit or loss
(6.7)
(5.0)
Remeasurement loss recognised in other comprehensive income
6.7
1.5
Total defined benefit scheme gain recognised
—
(3.5)
The net remeasurement loss in the year of £6.7m (2024: loss of £1.5m) reflects the net effect of a loss in asset values
of £8.4m, and a decrease in liability obligations of £1.7m, largely arising from a decrease in discount rates.
Persimmon Plc Annual Report 2025 – 177Financial statementsGovernance Other informationStrategic report
29 Retirement benefit assets continued
Assets
The assets of the Pension Schemes have been calculated at fair value and are invested in the following asset classes:
2025 2024
£m £m
Equity
– UK
—
2.4
– US
—
11 . 8
– Eurozone
—
9.0
– Other
Bonds
—
5.6
– Government
308.5
280.3
– Sub-investment grade
109.0
114.6
Asset backed funding
16.3
15.5
Diversified growth fund
56.7
53.8
Cash
11 . 5
11 . 3
Total
502.0
504.3
All assets have a quoted market value in an active market, with the exception of asset backed funding of £16.3m
(2024: £15.5m), which related to secured cash flows.
The Persimmon Scheme holds 94% (2024: 94%) of the gross assets of the Pension Schemes and 95% (2024: 94%)
of the gross liabilities. The remainder relates to the Prowting Scheme. The Pension Schemes do not engage in
investments in complex financial assets such as insurance contracts or longevity derivatives.
Changes in the fair value of scheme assets were as follows:
2025 2024
£m £m
As at 1 January
504.3
552.7
Return on assets recorded as interest
27.2
24.3
Remeasurement losses on assets
(8.4)
(47.6)
Contributions
—
0.1
Benefits and expenses paid
(21.1)
(25.2)
As at 31 December
502.0
504.3
Defined benefit obligation
The liabilities of the Pension Schemes, at each balance sheet date, have been calculated on the following
financial assumptions:
2025 2024
% p.a. % p.a.
Discount rate
5.5
5.5
RPI inflation assumption
2.8
3.1
CPI inflation assumption
2.4
2.7
Post-retirement life expectancy for retirement aged members is as follows:
2025 2024
Years Years
Male current pensioner
22.4
22.1
Male future pensioner
23.2
22.9
Female current pensioner
24.0
23.8
Female future pensioner
24.7
24.6
The defined benefit obligation includes benefits for current employees, former employees and current pensioners.
The following table provides an analysis of the defined benefit obligation by membership category:
2025 2024
£m £m
Total value of current employees’ benefits
—
—
Deferred members’ benefits
151.3
155.1
Pensioner members’ benefits
220.0
218.5
Total defined benefit obligation
371.3
373.6
The Pension Schemes’ duration is an indicator of the weighted average time until benefit payments are made.
For the Pension Schemes as a whole, the duration is around 12 years.
Financial statementsGovernance Other informationStrategic report178 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
29 Retirement benefit assets continued
Defined benefit obligation continued
Changes in the defined benefit obligation were as follows:
2025 2024
£m £m
As at 1 January
(373.6)
(425.6)
Current service cost
—
(0.2)
Curtailment cost
—
(0.1)
Interest cost
(20.0)
(18.6)
Remeasurement gain on liabilities
1.7
46.1
Benefits paid
20.6
24.8
As at 31 December
(371.3)
(373.6)
Sensitivities
The key assumptions used for IAS 19 are: discount rate, inflation and mortality. If different assumptions were used, this
could have a material effect on the results disclosed. The sensitivity of the results to these assumptions is as follows:
2025 2024
£m £m
Present value of defined benefit obligation (‘DBO’)
371.3
373.6
– DBO following a 0.25% decrease in the discount rate
381.8
384.3
– DBO following a 0.25% increase in the discount rate
361.3
363.2
– DBO following a 0.25% decrease in the inflation assumption
366.7
368.2
– DBO following a 0.25% increase in the inflation assumption
376.6
378.6
– DBO following a 1-year decrease to life expectancy
358.3
359.8
– DBO following a 1-year increase to life expectancy
384.2
386.9
The sensitivity information shown above has been prepared using the same methodology as the calculation for the
current DBO.
30 Partnership liability to the Persimmon Plc Pension &
Life Assurance Scheme
Persimmon Scottish Pension Trustees Limited, a wholly owned Group subsidiary, is general partner in Persimmon
Scottish Limited Partnership (the ‘Partnership’). Persimmon Pension Trustees Limited, the Trustee of the Persimmon
Plc Pension & Life Assurance Scheme (the ‘Persimmon Scheme’) is a limited partner. The Partnership is included
in the consolidated results of the Group. The Partnership has taken advantage of the exemptions in the Partnerships
(Accounts) Regulations 2008 not to file separate accounts on this basis.
The terms of the Persimmon Scheme’s interest in the Partnership give the pension scheme obligatory rights to cash
returns but insignificant operational control over the Partnership. The interest has been classified as a financial
liability and is accounted for on an amortised cost basis. During the year the Group agreed with the Trustees
to defer payments in relation to the Partnership liability (including interest) (2024: £5.6m paid).
Under IAS 19 the Partnership interest of the Persimmon Scheme is included within the UK pension scheme assets.
For further details see note 29.
The Partnership is the beneficial owner of a bond secured on a proportion of the Group’s shared equity loan receivables
and guaranteed by Persimmon Plc, which will support the Partnership investment return to the Persimmon Scheme.
31 Share-based payments
The Group operates a number of share option schemes, the details of which are provided below. All schemes
were equity settled.
The Savings-Related Share Option Scheme is an HMRC approved scheme open to all permanent employees.
Options can normally be exercised three years after the date of grant.
Options have been issued to senior management (including the Executive Directors) under the Group’s various executive
share option schemes, which include awards under the Group’s Long Term Incentive Plans. Future vesting of options is
dependent upon customer care, cash generation and TSR performance for options granted between 2019 and 2022
under the Persimmon Plc 2017 Performance Share Plan. Future vesting is dependant upon customer care, cash generation,
TSR performance and carbon reduction for options granted between 2023 and 2025 under the Persimmon Plc 2017
Performance Share Plan (‘PSP’). Future vesting is dependant upon Profit before tax for options granted in 2025 under
the Restricted Share Awards Plan (‘RSA’).
Reconciliations of share options outstanding during each period, under each type of share scheme, are as follows:
2025 2024
Savings-Related Share Option Scheme Savings-Related Share Option Scheme
Number Weighted Number Weighted
of shares average exercise of shares average exercise
Group and Company under option price (p) under option price (p)
Outstanding at the beginning of the year
2,071,982
970.0
2,233,801
954.9
Granted during the year
849,088
880.0
292,575
1,336.0
Forfeited during the year
(423,342)
1, 151. 6
(448,992)
1,133.8
Exercised during the year
(225,406)
1,075.5
(5,402)
969.4
Outstanding at the end of the year
2,272,322
892.0
2,071,982
970.0
Exercisable at the end of the year
127,256
1,080.0
43,936
2,197.0
Persimmon Plc Annual Report 2025 – 179Financial statementsGovernance Other informationStrategic report
31 Share-based payments continued
2025 2024
Bonus Share Bonus Share
Scheme Scheme
Number Number
of shares of shares
Group and Company under option under option
Outstanding at the beginning of the year
205,080
141,405
Granted during the year
173,789
92,340
Forfeited during the year
—
(7,572)
Exercised during the year
(84,962)
(21,093)
Outstanding at the end of the year
293,907
205,080
Exercisable at the end of the year
—
—
2025 2024
Buy Out Buy Out
Award Award
Number Number
of shares of shares
Group and Company under option under option
Outstanding at the beginning of the year
201,623
78,092
Granted during the year
10,327
142,706
Forfeited during the year
(1,980)
(6,525)
Exercised during the year
(102,328)
(12,650)
Outstanding at the end of the year
107,642
201,623
Exercisable at the end of the year
—
67,707
2025 2024
2017
Performance
2017
Performance
Share Plan Share Plan
Number Number
of shares of shares
Group and Company under option under option
Outstanding at the beginning of the year
4,852,140
3,679,304
Granted during the year
1,423,006
2,319,931
Forfeited during the year
(983,863)
(659,042)
Exercised during the year
(540,421)
(488,053)
Outstanding at the end of the year
4,750,862
4,852,140
Exercisable at the end of the year
247,733
424,151
2025 2024
Restricted Share Restricted Share
Awards Plan Awards Plan
Number Number
of shares of shares
Group and Company under option under option
Outstanding at the beginning of the year
—
—
Granted during the year
278,624
—
Forfeited during the year
(18,881)
—
Exercised during the year
—
—
Outstanding at the end of the year
259,743
—
Exercisable at the end of the year
—
—
The weighted average share price at the date of exercise for share options exercised during the period was
1,325.4p (2024: 1,394.0p). The options outstanding at 31 December 2025 had a range of exercise prices
from nil to 1,336.0p and a weighted average remaining contractual life of 1.8 years (2024: 1.8 years).
The inputs into the Black Scholes option pricing model for options that were granted in the year were as follows:
PSP 2025 PSP 2025
(no additional holding (Extended holding SAYE
Option valuation assumptions period)
period)
RSA 2025
2025
Grant date
24 March 2025
24 March 2025
24 March 2025
14 October 2025
Risk free interest rate
4.1%
4.1%
4.1%
3.7%
Exercise price
—
—
—
£8.80
Share price at date of grant
£11.93
£11.93
£11.93
£11.99
Expected dividend yield*
0%
0%
5%
5%
Expected life
3.0 years
3.0 years
3.0 years
3.1 years
Holding period
Nil
2 years
Nil
Nil
Date of vesting
10 March 2028
10 March 2028
10 March 2028
1 December 2028
Expected volatility
35.0%
35.0%
35.0%
33.2%
Fair value of option
£10.64
£8.84
£10.28
£1.43
* At the discretion of the Remuneration Committee a share bonus may be transferred to holders of 2025 PSP grants equivalent to the value
of any dividend which would have been paid on the shares held under option had those instead been issued. For purposes of this
valuation it has been assumed that such a transfer will be made and the forgone dividend yield assumption set to nil.
The expected life used in the model has been adjusted, based on best estimates, to reflect exercise restrictions
and behavioural considerations.
Financial statementsGovernance Other informationStrategic report180 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
31 Share-based payments continued
In 2025, the Group recognised total expenses before tax of £16.1m (2024: £14.7m) in relation to equity settled
share-based payment transactions in the Consolidated Statement of Comprehensive Income. These option
charges have been credited against the retained earnings reserve. As at 31 December 2025 the total credit
recognised in relation to equity settled share-based payments was £35.4m (2024: £32.3m) of which £3.7m
(2024: £8.2m) related to options currently vested awaiting exercise. All Group share-based payments are
expensed by the Company.
32 Related party transactions
The Board and certain members of senior management are related parties within the definition of IAS 24 Related
Party Disclosures. Summary information of the transactions with key management personnel is provided in note 8.
Detailed disclosure of the individual remuneration of Board members is included in the Remuneration Report on
pages 118 to 142. There is no difference between transactions with key management personnel of the Company
and the Group.
The Company has entered into transactions with its subsidiary undertakings in respect of the following: internal
funding loans and provision of Group services (including senior management, IT, accounting, marketing,
purchasing, legal and conveyancing services). Recharges are made to subsidiary undertakings for Group loans,
based on funding provided, at an interest rate linked to average Group borrowing costs. No recharges are made
in respect of balances due to or from otherwise dormant subsidiaries. Recharges are made for Group services
based on utilisation of those services.
During the year these recharges amounted to:
2025 2024
£m £m
Interest charges on intra-Group funding
(16.4)
(17.8)
Group services recharges
153.9
129.0
137.5
111 . 2
In addition to these services the Company acts as a buying agent for certain Group purchases, such as insurance.
These are recharged at cost based on utilisation by the subsidiary undertaking.
The amount outstanding from subsidiary undertakings to the Company at 31 December 2025 totalled £2,055.8m
(2024: £2,045.6m). Amounts owed to subsidiary undertakings by the Company at 31 December 2025 totalled
£3,829.0m (2024: £3,760.9m).
The Company provides the Group’s defined benefit pension schemes. Current employer contributions are charged
to the operating businesses at cost. There is no contractual arrangement or stated policy relating to the net defined
benefit cost. Experience and remeasurement gains and losses are recognised in the Company.
The Company guarantees a bond issued from Persimmon Shared Equity Limited to Persimmon Scottish Limited
Partnership (both subsidiary undertakings). The fair value of the bond at 31 December 2025 is £16.3m (2024: £15.5m).
Certain subsidiary undertakings have entered into guarantees of external bank loans and overdrafts of the
Company. The total value of such borrowings at 31 December 2025 was £nil (2024: £nil). The Company has
entered into guarantees over bank loans and borrowings of the subsidiary undertakings. The total value of such
borrowings at 31 December 2025 was £nil (2024: £nil). The value of these guarantees in the year is assessed
as insignificant.
The Company has suffered a £nil expense in respect of bad or doubtful debts of subsidiary undertakings in
the year (2024: £nil).
33 Details of major Group undertakings
The Directors set out below information relating to the major subsidiary undertakings (those that principally affect
the profits and assets of the Group) of Persimmon Plc at 31 December 2025. All of these companies are registered
in England. All voting rights are held by companies within the Group. A full list of subsidiary undertakings and
jointly controlled entities can be found in note 34.
Major subsidiary undertakings
Persimmon Homes Limited°
Charles Church Developments Limited
∆
Persimmon Holdings Limited*
° The shares of this company are held by Persimmon Holdings Limited and Persimmon Plc.
∆ The shares of this company are held by Persimmon Holdings Limited.
* The shares of this company are held by Persimmon Finance Limited and Persimmon Plc.
34 Details of all subsidiary undertakings
Persimmon Group subsidiary companies
The following companies, included in these consolidated accounts, are wholly owned by the Persimmon Group and
are incorporated in the UK unless otherwise stated. Persimmon Plc or its subsidiary companies also hold all of the
voting rights unless otherwise stated. The Registered Office for each company is Persimmon House, Fulford, York,
YO19 4FE unless otherwise stated.
Name of undertaking
Description of shares held
@Home Limited
Ordinary* and 3.5% Preference*
A.E.A Prowting Limited
Ordinary*
A Monk & Company Developments (S.W.) Limited
Ordinary* and Deferred*
Alford Brothers Limited
Ordinary*
Anjok 157 Limited
Ordinary*
Anjok 171 Limited
Ordinary*
Anjok 172 Limited
Ordinary*
Anjok 173 Limited
Ordinary*
Anjok 269 Limited
Ordinary* and Deferred*
Anjok 28 Limited
Ordinary* and 8% Preference*
Anjok 31 Limited
Ordinary*
Anjok Five (1996) Limited
Ordinary*
Persimmon Plc Annual Report 2025 – 181Financial statementsGovernance Other informationStrategic report
Name of undertaking
Description of shares held
Anjok Holdings Limited
Ordinary* and Deferred*
Anjok Investments Limited
Ordinary*
Anjok Twenty Limited
A Ordinary* and B Ordinary*
Anjok Two Limited
Ordinary*
Aria Homes Limited
A Ordinary* and B Ordinary*
Arthur S Nixon and Company
1% Non-Cumulative Preference* and Ordinary*
Aspect Homes Limited
Ordinary*
Atlantis One Limited
Ordinary* and Preference*
Beazer Group Limited
Ordinary*
Beazer Homes (Anglia) Limited
Deferred* and A Ordinary*
Beazer Homes (Barry) Limited
Ordinary*
Beazer Homes (FLE) Limited
A Ordinary* and B Ordinary*
Beazer Homes (FNLHS) Limited
Ordinary*
Beazer Homes (South Wales) Limited
Ordinary*
Beazer Homes (Wessex) Limited
Ordinary*
Beazer Homes and Property Limited
Ordinary*
Beazer Homes Bedford Limited
Deferred* and A Ordinary*
Beazer Homes Birmingham Central Limited
Deferred* and A Ordinary*
Beazer Homes Bridgwater Limited
Deferred* and A Ordinary*
Beazer Homes Bristol Limited
Deferred* and A Ordinary*
Beazer Homes Cardiff Limited
Deferred* and A Ordinary*
Beazer Homes Doncaster Limited
Deferred* and A Ordinary*
Beazer Homes Edinburgh Limited
Deferred* and A Ordinary*
Beazer Homes Glasgow Limited
Deferred* and A Ordinary*
Beazer Homes Limited
Ordinary*, Deferred* and A Ordinary*
Beazer Homes Nottingham Limited
Ordinary*
Beazer Homes Reigate Limited
Ordinary*
Beazer Homes Stockport Limited
Deferred* and A Ordinary*
Beazer Homes Yateley Limited
Deferred* and A Ordinary*
Beazer London Limited
Ordinary*
Beazer Partnership Homes (Scotland) Limited
Ordinary*
Beazer Partnership Homes Midlands Limited
Ordinary*
34 Details of all subsidiary undertakings continued
Persimmon Group subsidiary companies continued
Name of undertaking
Description of shares held
Beazer Swaffham Limited
Ordinary*
Beazer Urban Developments (Anglia) Limited
Deferred* and A Ordinary*
Beazer Urban Developments (Bedford) Limited
Ordinary*
Beazer Urban Developments (East Midlands) Limited
Ordinary*
Beazer Urban Developments (South West) Limited
Ordinary*
Beazer Western Engineering Services Limited
Ordinary*
Belsco 1020 Limited
Ordinary*
Breakblock Limited
Ordinary*
Broomco (3385) Limited
Ordinary*
Bruce Fletcher (Leicester) Limited
Ordinary*
Charles Church Civil Engineering Limited
Ordinary*
Charles Church Developments Limited
Ordinary*
Charles Church Essex Limited
Ordinary*
Charles Church Estates Limited
Ordinary*
Charles Church Holdings plc
A Convertible Ordinary*, B Ordinary*, B Redeemable
Preference*, C Preference*, D Ordinary*, D Preference*,
Deferred*, E Deferred*, E Ordinary* and Preference*
Charles Church Housing Limited
Ordinary*
Charles Church Investment Properties Limited
Ordinary*
Charles Church Kent Limited
Ordinary*
Charles Church Limited
Ordinary*
Charles Church London Limited
Ordinary*
Charles Church Management Limited
Ordinary*
Charles Church Partnership Homes Limited
Ordinary*
Charles Church Residential Developments Limited
Ordinary*
Charles Church South East Limited
Ordinary*
Charles Church Southern Limited
Ordinary*
Charles Church Thames Valley Limited
Ordinary*
Charles Church Trading Limited
Ordinary*
Charles Church Village Heritage plc
Ordinary*
Coatglade Limited
Ordinary*
Comben Group Limited
A Deferred Ordinary, B Deferred Ordinary and Ordinary
Cresswellshawe Properties Limited
Ordinary* and 3.5% Preference*
Crowther Homes (Darlington) Limited
Ordinary*
Crowther Homes (Midland) Limited
Ordinary*
Financial statementsGovernance Other informationStrategic report182 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
Name of undertaking
Description of shares held
Crowther Homes (Nat W) Limited
Ordinary*
Crowther Homes (Yarm) Limited
Ordinary*
Crowther Homes Limited
Ordinary*
D Dunk (Builders) Limited
Ordinary*
D R Dunthorn & Son Limited
Deferred*, Deferred* and Ordinary*
Datblygwyr Dorothea Limited (94% of nominal value owned) Ordinary*
Delany Brothers (Housebuilders) Limited
Ordinary* and Preference*
Domus Group Limited
Deferred*, Deferred* and A Ordinary*
E.E. Reed & Co. (Builders) Limited
Ordinary*
E F G H Limited
Ordinary*
E F G H Nominees Limited
Ordinary*
Emerson Park Limited
Ordinary*
F C Spear Limited
Ordinary*
Ferry Quay Developments Limited
A Ordinary*, B Ordinary* and C Ordinary*
Flex Fibre Limited
Ordinary*
FibreScale Limited
Ordinary*
Frays Property Management (No.1) Limited
Ordinary*
Frays Property Management (No.2) Limited
Ordinary*
Frays Property Management (No.6) Limited
Ordinary*
Friary Homes Limited
Ordinary*
Galliford Developments Limited
Ordinary*
Galliford Homes (London) Limited
A Ordinary* and B Ordinary*
Galliford Homes Holdings Limited
A Ordinary*, B Ordinary* and Preference*
Galliford Homes Limited
Ordinary*
Galliford Properties Southern Limited
Ordinary*
Galliford Southern Limited
Ordinary*
Geo. Wright & Co. (Contractors Wolverhampton) Limited
Deferred*, A Deferred* and A Ordinary*
Glamford Building Company Limited
Ordinary*
Gomersal Mills Limited
Deferred* and Ordinary*
Gosforth Business Park Management Company (No.2) Limited Ordinary*
Haven Retirement Homes Limited
Ordinary*
Hazels Development Company Limited
A Ordinary* and B Ordinary*
34 Details of all subsidiary undertakings continued
Persimmon Group subsidiary companies continued
Name of undertaking
Description of shares held
Hillreed Developments Limited
Ordinary*
Hillreed Holdings LimitedOrdinary*, Management Shares* and Cumulative Preference*
Hillreed Homes Limited
Ordinary*
Hillreed Properties Limited
Ordinary*
Horsebridge Network Systems Limited
A Ordinary*
Ideal Developments Limited
Ordinary*
Ideal Homes (UK) Limited
Ordinary*
Ideal Homes Anglia Limited
Ordinary*
Ideal Homes Central Limited
A Non-Voting Ordinary* and B Ordinary*
Ideal Homes Holdings Limited
Deferred and Ordinary
Ideal Homes Limited
Ordinary*
Ideal Homes Midlands Limited
Ordinary*
Ideal Homes North West Limited
Ordinary*
Ideal Homes Northern Limited
Ordinary*
Ideal Homes Scotland Limited
Ordinary*
Ideal Homes Services Limited
Ordinary*
Ideal Homes Southern Limited
Ordinary*
J.W. Liptrot & Company Limited
Ordinary*
Jaboulet Limited
Ordinary*
John Maunders Group Limited
Ordinary*
Kenton Contracting (Yorkshire) Limited
Ordinary*
Kenton Contractors (Yorkshire) Limited
Ordinary*
Kenton Homes (Builders) Limited
Ordinary*
Kenton Homes (Developments) Limited
Ordinary*
Kenton Homes (Estates) Limited
Ordinary*
Knightsmoor Homes Limited
Ordinary*
Lady’s Lane Property Co. Limited
Ordinary*
Lansdown Homes Limited
Ordinary*
Lazy Acre Investments Limited
Ordinary*
Leech Homes (Showhouses) Limited
Ordinary*, 0.1% Non-Cumulative Preference A* and 1%
Non-Cumulative Preference B*
Leech Homes (Wales) Limited
Ordinary*
Leech Homes (Yorkshire) Limited
Ordinary*
Leech Homes Limited
Deferred* and A Ordinary*
Persimmon Plc Annual Report 2025 – 183Financial statementsGovernance Other informationStrategic report
Name of undertaking
Description of shares held
Leech Northumbria Limited
Ordinary*
Leech Partnership Homes Limited
Ordinary*
Leisurama Homes Limited
Ordinary*
Linkway Properties Limited
Ordinary*
Locking Castle Limited
A Ordinary*, B Ordinary* and C Ordinary*
Lone Star Land Limited
A Ordinary* and B Ordinary*
Magnus Design Build Limited
Ordinary*
Magnus Holdings Limited
A Ordinary*, B Ordinary*, C Ordinary*, Enduring
Ordinary* and Cumulative Redeemable Preference*
Mapleleigh Limited
Ordinary*
Marriott Homes Limited
Ordinary*
Maunders Homes (East Anglia) Limited
Ordinary*
Maunders Homes (Midlands) Limited
Ordinary*
Maunders Homes (North West) Limited
Ordinary*
Maunders Homes (South) Limited
Ordinary*
Maunders Inner City Limited
Ordinary*
Maunders Urban Renewal Limited
Ordinary*
Mayclose Research Limited
Ordinary*
Melville Homes Limited
A Ordinary*, B Ordinary*, C Ordinary*, Deferred* and
Cumulative Redeemable Preference*
Merewood (Kendal) Limited
Ordinary*
Merewood Group Limited
Ordinary*
Merewood Homes Limited
Ordinary*
Merewood Investments Limited
Ordinary*
Mightover Limited
Ordinary
Milton Keynes Housing Group Limited
Ordinary*
Mitrebuild Limited
Ordinary* and Deferred Ordinary*
Monk Homes Limited
Ordinary*
Monsell Youell Construction Limited
Ordinary*
Monsell Youell Limited
Deferred* and A Ordinary*
Montague Developments Limited
Ordinary*
Mount Row Finance Limited
Ordinary*
Mount Row Securities Limited
Ordinary*
34 Details of all subsidiary undertakings continued
Persimmon Group subsidiary companies continued
Name of undertaking
Description of shares held
NGP Management Company Residential (Cell C) Limited
Ordinary*
Pacemaker Developments Limited
Ordinary*
Park House Developments (Petersfield) Limited
Ordinary*
Partnership Homes Limited
Ordinary*
Pennant Developments Limited
Ordinary* and 5% Non-Cumulative Preference*
Pentra Limited
Ordinary*
Perlease Limited
Ordinary*
Persimmon (City Developments) Limited
Ordinary*
Persimmon (Eccleshall) Limited
Ordinary*
Persimmon (Share Scheme Trustees) Limited
Ordinary
Persimmon (SHL) Limited
Ordinary*
Persimmon (Strensall) Limited
Ordinary*
Persimmon Brickworks Limited
Ordinary*
Persimmon Developments (No 1) Limited
Ordinary*
Persimmon Developments (No 2) Limited
Ordinary*
Persimmon Developments (Didcot) Limited
Ordinary*
Persimmon Developments (No 5) Limited
Ordinary*
Persimmon Developments (No 6) Limited
Ordinary*
Persimmon Developments (No 7) Limited
Ordinary*
Persimmon DN Limited (Incorporated in Ireland)
Ordinary*
Persimmon Finance (Jersey) Limited (Incorporated in Jersey) Ordinary
Persimmon Finance (No 2) Limited
Ordinary
Persimmon Finance Limited
Ordinary
Persimmon Harts Limited
Ordinary
Persimmon GR (No 4) Limited
Ordinary*
Persimmon GR (No 11) Limited
Ordinary*
Persimmon GR (No 12) Limited
Ordinary*
Persimmon GR (No 13) Limited
Ordinary*
Persimmon GR (No 14) Limited
Ordinary*
Persimmon GR (No 15) Limited
Ordinary*
Persimmon GR (No 16) Limited
Ordinary*
Persimmon GR (No 17) Limited
Ordinary*
Persimmon Holdings Limited
Ordinary and A Ordinary*
Persimmon Homes (Anglia) Limited
Ordinary*
Financial statementsGovernance Other informationStrategic report184 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
Name of undertaking
Description of shares held
Persimmon Homes (Doncaster) Limited
Ordinary*
Persimmon Homes (East Midlands) Limited
Ordinary*
Persimmon Homes (East Scotland) Limited
Ordinary*
Persimmon Homes (East Yorkshire) Limited
Ordinary*
Persimmon Homes (Edmonstone) Limited
Ordinary
Persimmon Homes (Essex) Limited
Deferred* and A Ordinary*
Persimmon Homes (Lancashire) Limited
Ordinary*
Persimmon Homes (Mercia) Limited
Ordinary*
Persimmon Homes (Midlands) Limited
Ordinary*
Persimmon Homes (North East) Limited
Ordinary*
Persimmon Homes (North Midlands) Limited
Ordinary*
Persimmon Homes (North West) Limited
Ordinary*
Persimmon Homes (Partnerships) Limited
Ordinary
Persimmon Homes (South Coast) Limited
Ordinary*
Persimmon Homes (South East) Limited
Ordinary*
Persimmon Homes (South Midlands) Limited
Deferred* and A Ordinary*
Persimmon Homes (South West) Limited
Ordinary*
Persimmon Homes (South Yorkshire) Limited
Ordinary*
Persimmon Homes (Teesside) Limited
Ordinary*
Persimmon Homes (Thames Valley) Limited
Ordinary*
Persimmon Homes (Wales) Limited
Ordinary*
Persimmon Homes (Wessex) Limited
Ordinary*
Persimmon Homes (West Midlands) Limited
Deferred* and A Ordinary*
Persimmon Homes (West Scotland) Limited
Ordinary*
Persimmon Homes (West Yorkshire) Limited
Ordinary*
Persimmon Homes (Woodley) Limited
Ordinary
Persimmon Homes (York) Limited
Ordinary
Persimmon Homes (Yorkshire) Limited
Deferred* and Ordinary*
Persimmon Homes Developments Limited
Ordinary
Persimmon Homes Limited
Ordinary*
Persimmon Partnerships (Scotland) Limited
Ordinary*
Persimmon Pension Trustees Limited
Ordinary
Persimmon Residential Limited
Ordinary*
34 Details of all subsidiary undertakings continued
Persimmon Group subsidiary companies continued
Name of undertaking
Description of shares held
Persimmon SC (No 1) Limited
Ordinary*
Persimmon SC (No 2) Limited
Ordinary*
Persimmon SC (No 3) Limited
Ordinary*
Persimmon SC (No 4) Limited
Ordinary*
Persimmon SC (No 5) Limited
Ordinary*
Persimmon SC (No 6) Limited
Ordinary*
Persimmon SC (No 8) Limited
Ordinary*
Persimmon Scottish Limited Partnership**
n/a
Persimmon Scottish Pension Trustees Limited
Ordinary
Persimmon Shared Equity Limited
Ordinary
Persimmon Tileworks Limited
Ordinary*
Persimmon Trustees Limited
Ordinary
Pinnacle Developments (Scotland) Limited
Ordinary*
Practical Finance Co. Limited
Ordinary*
Prowting Homes Anglia Limited
B Ordinary*, C Ordinary* and D Ordinary*
Prowting Homes Central Limited
Ordinary*
Prowting Homes Chatsworth Limited
Ordinary*
Prowting Homes Limited
Ordinary*
Prowting Homes Ludlow Limited
Ordinary*
Prowting Homes Midlands Limited
Ordinary*
Prowting Homes South East Limited
Ordinary*
Prowting Homes South West Limited
Ordinary*
Prowting Homes West Limited
Ordinary*
Prowting Homes Wolds Limited
Ordinary*
Prowting Limited
Ordinary*
Prowting Projects Limited
Ordinary*
Prowting Properties Limited
Ordinary*
Repac Homes Limited
Ordinary*
SLB Construction Management Limited
Ordinary*
Second City Homes Limited
Deferred* and A Ordinary*
Senator Homes Limited
Ordinary*
Sequoia Developments Limited
Ordinary*
Severnbrook Homes Limited
Ordinary*
Sherbourne Properties (Warwick) Limited
Ordinary*
Space4 Limited
Ordinary*
Persimmon Plc Annual Report 2025 – 185Financial statementsGovernance Other informationStrategic report
Name of undertaking
Description of shares held
Springfir Estates Limited
Ordinary*
Springfir Holdings Limited
Ordinary*
Steelhaven (7) Limited
Ordinary* and 1% Non-Cumulative Redeemable
Participating Preference*
Tamborough Developments Limited
Ordinary*
Tela Properties Limited
Ordinary*
The Charles Church Group Limited
A Ordinary*
The Charles Church Group Share Trustees Limited
Ordinary*
Townedge (Holdings) Limited
Ordinary*
Townedge Estates Limited
Ordinary*
Trent Park Regeneration Limited
A Ordinary* and B Ordinary*
Tryall Developments Limited
Ordinary*
Tudor Jenkins & Company Limited
Ordinary*
Walker Homes (Scotland) Limited
Ordinary*
Wardour Limited (Incorporated in Gibraltar)
Ordinary*
Wenshaw Limited
Ordinary*
Wescott Holdings Limited
Ordinary*
Wescott Homes Limited
Ordinary*
Wescott Land Limited
Ordinary*
Westbury Direct Limited
Ordinary*
Westbury Homes (Holdings) Limited
Irredeemable Preference*, Ordinary*, Deferred* and
9.25% Preference*
Westbury Homes (Midlands) Limited
Ordinary*
Westbury Homes (Oval) Limited
Ordinary*
Westbury Homes (Severnside) Limited
Ordinary*
Westbury Homes (Somerset) Limited
Ordinary*
Westbury Homes (South West) Limited
Ordinary*
Westbury Homes (Stadium) Limited
Ordinary*
Westbury Homes (Venymore) Limited
A Ordinary* and B Ordinary*
Westbury Homes (Wales) Limited
Ordinary*
Westbury Homes (West Midlands) Limited
Ordinary*
Westbury Homes Limited
Ordinary*
Westbury Housing Investments Limited
Ordinary*
34 Details of all subsidiary undertakings continued
Persimmon Group subsidiary companies continued
Name of undertaking
Description of shares held
Westbury Limited
Ordinary
William Leech Builders (North West) Limited
Ordinary*
William Leech Limited
Ordinary* and 6.5% Cumulative Preference*
Joint arrangements
Description of Proportion of nominal Proportion of all
Name of undertakingshares heldvalue of share class heldshare classes
Beechpath Limited
Ordinary
50%
50%
Bentwaters Housing Limited
Ordinary
50%
50%
Bentwaters Nominees Limited
Ordinary
50%
50%
Coton Park Consortium Limited
5
WD
50%
25%
Cramlington Developments Limited
A Ordinary
100%
50%
Emersons Green Urban Village Limited
6
B Shares
100%
45.6%
Genesis Estates (Manchester) Limited
7
Ordinary
50%
50%
Gosforth Business Park Management Company Limited
A Ordinary
100%
33.3%
Haydon Development Company Limited
Ordinary
20.5%
20.5%
KSW (Chesterton) Limited
9
C Ordinary
100%
33.3%
KSW (Evesham) Limited
9
Ordinary
33.3%
33.3%
KSW Brize Norton Limited
9
C Ordinary
100%
33.3%
KSW Daventry Limited
9
Ordinary
33.3%
33.3%
Leebell Developments Limited
A Ordinary
100%
50%
Newcastle Great Park (Estates) Limited
10
A Ordinary
100%
50%
North Haven Developments (Sunderland) Limited
B Ordinary
100%
50%
North Swindon Development Company Limited
11
Ordinary
15 %
15 %
Oxfordshire Land Limited
Ordinary
33.3%
33.3%
Quedgeley Urban Village Limited
6
C Ordinary
100%
25%
Rothley Temple Estates Limited
12
Ordinary
28.5%
28.5%
Sociedade Torre de Marinha Realizacoes Turisticas SA
(incorporated in Portugal)
13
Ordinary
50%
50%
Trafalgar Metropolitan Homes Limited
A Ordinary
100%
50%
Triumphdeal Limited
14
Ordinary
50%
50%
Wick 3 Nominees Limited
B Ordinary
100%
33.3%
* Share class held by another Group company, but ultimately held by Persimmon Plc.
** A Scottish Limited Partnership.
1. 180 Findochty Street, Garthamlock, Glasgow, G33 5EP
2. 10 Earlsfort Terrace, Dublin 2, D02 T380, Ireland
Financial statementsGovernance Other informationStrategic report186 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
3. 44 Esplanade, St Helier, JE4 9WG, Jersey
4. 3 Bell Lane, Gibraltar
5. The Office, 12 Westfield Close, Gravesend, Kent, DA12 5EH, United Kingdom
6. 250 Aztec West, Almondsbury, Bristol, BS32 4TR, United Kingdom
7. 6 Europa Court, Sheffield Business Park, Sheffield, S9 1XE, England
8. 6 Drakes Meadow, Penny Lane, Swindon, Wiltshire, England, SN3 3LL, United Kingdom
9. 1 High Street, Henley-In-Arden, England, B95 5AA
10. Cheviot House, Beaminster Way East, Newcastle Upon Tyne, Tyne and Wear, NE3 2ER, United Kingdom
11. 6 Drakes Meadow, Penny Lane, Swindon, Wiltshire, SN3 3LL
12. 137 Scalby Road, Scarborough, North Yorkshire, YO12 6TB
13. Av. Duque de Loulé 47-2, 1050-086, Lisbon, Portugal
14. Gate House , Turnpike Road, High Wycombe, Buckinghamshire, HP12 3NR
Audit exemption
The subsidiaries listed in the table below have adopted the exemption from audit available under section 479A
of the Companies Act 2006 for the year ended 31 December 2025; the subsidiaries are 100% owned, either
directly or indirectly, by Persimmon Plc. In accordance with section 479C of the Companies Act 2006,
Persimmon Plc will guarantee the outstanding liabilities of the subsidiaries listed in the table below.
Subsidiary
Company number
Anjok Investments Limited
0 9497 717
Merewood Group Limited
01967047
Pentra Limited
02782107
Persimmon Developments (Didcot) Limited
06252681
Persimmon Homes Developments Limited
02572895
Persimmon Scottish Pension Trustees Limited
SC435631
Westbury Housing Investments Limited
06252707
Resident Management Companies
The companies listed below are Resident Management Companies (‘RMCs’) currently controlled by the Group.
Control is exercised by the Group’s power to appoint Directors and the Group’s voting rights in these companies.
All RMCs are companies limited by guarantee without share capital (unless otherwise stated) and incorporated
in the UK.
The capital, reserves and profit or loss for the year have not been stated for these RMCs as beneficial interest in
any assets or liabilities of these companies is held by the residents. These companies have not been included in the
consolidated accounts, are temporary members of the Group and will be handed over to residents in due course.
The Registered Office of each RMC is Persimmon House, Fulford, York, YO19 4FE (unless otherwise stated).
Company name
1P Valley Park (Didcot) Management Company Limited
Abbey Green (Amesbury) Management Company Limited
Abbeyvale Taunton Management Company Limited
1
Abbot Walk (Chatteris) Residents Management Company Limited
Abbotsham Park (Bideford) Management Company Limited
Ackton Pastures(Castleford) Management Company Limited
Agusta Park Flats Yeovil Management Company Limited
1
Agusta Park Yeovil Management Company Limited
Alderman Park (Hasland) Management Company Limited
Aldhurst View (Leiston) Residents Management Company Limited
Allt Y Celyn (Rhos) Management Company Limited
Amberwood (Carlisle) Management Company Limited
Amblehurst Green (Billingshurst) Management Company Limited
2
Amherst Hill (Brompton) Management Company Limited
3
Appledore Grove Management Company Limited
Arnold Way (Grove) Management Company Limited
Arnold Way No. 2 (Grove) Management Company Limited
Arnold Way No. 3 (Grove) Management Company Limited
Ashworth Place (Phase 2) Management Limited
Augusta Park (Dinnington) Management Company Limited
4
Avalon (Mansfield) Management Company Limited
5
Avon Fields (Durrington) Management Company Limited
34 Details of all subsidiary undertakings continued
Joint arrangements continued
Persimmon Plc Annual Report 2025 – 187Financial statementsGovernance Other informationStrategic report
34 Details of all subsidiary undertakings
continued
Resident Management Companies continued
Company name continued
Awel Afan (Port Talbot) Management Company Limited
Awel Y Mynydd (Pembrey) Management Company Ltd
Aykley Woods (Durham) Management Company Limited
6
Aylesham Village Phase 1B (Aylesham) Residents Management
Company Limited
Aylesham Village Phase 2 (Aylesham) Residents Management Co Ltd
Aylesham Village Phase 2B and 2C (Aylesham) Residents Management
Company Limited
Backbridge (Malmesbury) Management Company Limited
Badbury Park (Swindon) Management Company Limited
Badbury Park (Swindon) No 2 Management Company Limited
Badbury Park (Swindon) No 3 Management Company Limited
Bannerbrook Management Company Limited
7
Bannerbrook Park Phase II (Coventry) Management Company Limited
Barber Court (Birmingham) Management Company Limited
Barrington Park Management Company Limited
8
Barry Waterfront Residents Management Company Limited
9
Beamhill Heights Management Company Limited
10
Beauchamp Grange (Caister) Residents Management Company Limited
Beckets Grove Management Company Limited
Beckets Grove Phase 2 (Wymondham) Residents Management
Company Limited
Beckford Road (Alderton) Management Company Limited
Belgrave Court (Cheltenham) Management Company Limited
9
Bell Lane (Little Chalfont) Management Company Limited
Berrow Court Management Company Limited
9
Birchwood Manor (Wardley) Residents Management Company Limited
Bishops Green (Coundon) Management Company Limited
Bishops Mead (Lydney) Management Company Limited
Bishops Meade (Downton) Management Company Limited
Bluebell Grange Residents Management Company Limited
Bluebell Meadow (Bradwell) Management Company Limited
Bluebell Wood (Willenhall) Management Company Limited
1
Bootham Crescent (York) Residents Management Company Limited
Boulton Moor (Derby) Properties Limited
Boyton Place (Haverhill) Residents Management Company Limited
Brackenleigh (Carlisle) Management Company Limited
Bradley Barton View Management Company Limited
Bradley Park (Market Weighton) Residents Management Company Limited
Bramble Rise (Hetton) Management Company Limited
Bramblewood (Old Basing) Residents Management Company Limited
9
Brampton Vale (Rotherham) Management Company Limited
Branshaw Park (Keighley) Management Company Ltd
Brascote Park Management Company Limited
Bridgefield (Ashford) Management Company Limited
Bridgefield Nine Management Company Limited
Brindle Park (Bamber Bridge) Management Company Limited
11
Broadway (Rainham) Residents Management Company Limited
Brockeridge Road (Twyning) Resident Management Company Limited
1
Brockhill East (Redditch) Management Company Limited
Brookfield (Golborne) Management Company Limited
8
Broomhill View (Togston) Residents Management Company Limited
Buckton Place (Leiston) Residents Management Company Limited
Bugbrooke Road (Kislingbury) Management Company Limited
12
Burfield Valley Estate Management Limited
13
Buttercup Leys (Boulton Moor) Residential Management Company Limited
Buzzard Meadows (Leighton Buzzard) Residents Management
Company Limited
14
Canalside (Burton upon Trent) Residential Management Company Limited
Canonbury Rise (Berkeley) Management Company Limited
Carleton Meadows Management Company Limited
Carn Y Cefn RMC Ltd
15
Carpenters Field (Denmead) Management Company Limited
Castellum Grange (Colchester) Residents Management Company Limited
Castle Hill (Cottingham) Management Company Limited
Castle Park (West Durrington) Management Company Limited
Castle View (Netherton) Management Company Limited
Castlemead (953) Trowbridge Management Company Limited
Castlemead (Persimmon 950) Town Trowbridge Limited
Castlemead (Persimmon 964) Town Trowbridge Limited
Castleton Grange (Eye) Residents Management Company Limited
Cathedral Court (Salisbury) Management Company Limited
Cathedral Gate (Salisbury) No.2 Management Company Limited
9
Cathedral View (Durham) Management Company Limited
Cayton Meadows (Scarborough) Management Company Limited
Central Square (Stroud) Management Company Limited
9
Century Rise (Emersons Green) Management Company Limited
Chancery Park (Exning) Residents Management Company Limited
Charlton Place (Keynsham) Management Company Limited
Chaucers Meadow (North Petherton) Management Company Limited
Chilmark Glade Management Company Limited
Chorley G 1 Management Company Limited
11
Chosen View (No. 2) Management Company Limited
9
Church Lane (Deal) Residents Management Company Limited
Clarence Place (Bracknell) Residents Management Company Limited
Cloatley Cresent Management Company Limited
Clos Ty Gwyn (Hendy) Management Company Limited
Clover Chase (Lingwood) Residents Management Company Limited
Financial statementsGovernance Other informationStrategic report188 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
34 Details of all subsidiary undertakings
continued
Resident Management Companies continued
Company name continued
Cloverlea Gardens (Kingswood) Management Company Limited
Coastal Dunes (Lytham St Annes) Management Company Limited
Coatham Vale and Berrymead Gardens Residents Management
Company Limited
4
Cobbydale Rise (Silsden) Residents Management Company Limited
11
Coed Darcy (Llandarcy) Management Company Limited
College Park (Thurston) Residents Management Company Limited
Colliers Walk (Nottingham) Management Company Limited
11
Colonial Wharf (Chatham) Residents Management Company Limited
Constable Vale (Hadleigh) Residents Management Company Limited
Coopers Grange (Bishops Stortford) Resident Management Company Ltd
16
Copperfield Place (Chelmsford) Residents Management Company Limited
Copperfield Truro Management Company Limited
Coquet Grange (Amble) Management Company Limited
4
Corelli Sherborne Management Company Limited
Cote Farm (Thackley) Management Company Limited
Coton Park (Rugby) Management Company Limited
Cotswold Vale (Long Marston) Management Company Limited
1
Coverdale Paignton Management Company Limited
1
Cricketers Green (Forton) Residents Management Company Limited
Crofton Walk (Fair Oak) Management Company Limited
Cromwell Gardens (Huntingdon) Residents Management
Company Limited
Cromwell Place (Little Dunmow) Residents Management Company Limited
Cross Quays (Westwood) Management Company Limited
Cross Quays Phase 2 (Thanet) Residents Management Company Limited
Crownfield Court (Windlesham) Management Company Limited
Cumnor Hill Management Company Limited
Cwrt Y Llwyfen (Johnstown) Management Company Limited
Cygnet Grange (Swanmore) Residents Management Company Limited
Daisy Hill (Morley) Management Company Limited
Daisy’s View (Burbage) Management Company Limited
Dan Y Bryn Management Company Limited
Dartford Bow Arrow (Management Company) Limited
17
De Lucy Place (Ongar) Residents Management Company Limited
8
De Vere Grove (Colchester) Residents Management Company Limited
Deerwood Park (Colne) Management Company Limited
Dol Yr Ysgol (Bridgend) Management Company Limited
Douglas Gardens (Hesketh) Management Company Ltd
11
Downs View (Swanley) Residents Management Company Limited
Dukes Meadow (Tangmere) Management Company Limited
9
D’Urton Heights (Preston) Management Company Limited
Earlesmead (Framingham Earl) Residents Management Company Limited
East Benton Rise (Benton) Management Company Limited
Eclipse House (Andover) Management Company Limited
Edinburgh Park (Liverpool) Management Company Limited
11
Elkas Rise (Ilkeston) Management Company Limited
Ellesmere Park (The Oaks) Management Company Limited
8
Ellis Mews (Micheldever) Management Company Limited
13
Elm Farm (Wymondham) Residents Management Company Limited
Elm Rise (Birtley) Residents Management Company Limited
Emily Fields (Swansea) Management Company Limited
Eton Place (Bracknell) Management Company Limited
Eve Parc (Falmouth) Management Company Limited
Everingham Place (Cantley) Residents Management Company Limited
Fair Mile Rise (Blandford St Mary) Management Company Limited
Fairfax Mews Crediton Management Company Limited
1
Fairmoor (Morpeth) Management Company Limited
Fairways (Retford) Management Company Limited
Fallow (Benton) Residents Management Company Limited
Farleigh Fields (Backwell) Management Company Ltd
Farley Fields South Petherton Management Company Limited
1
Fatherford View (Okehampton) Management Company Limited
Festival Park (Easton) Residents Management Company Limited
Fiddington Fields (Tewkesbury) Management Company Limited
Fishpool Hill Bristol Management Company Limited
Fleckney Road Management Company Limited
Flint Grange (Clacton) Residents Management Company Limited
Foley Gardens (Newent) Residential Management Company Limited
1
Folly Grove (Hockley) Residents Management Company Limited
Forest View (Calverton) Management Company Limited
Forge Wood (Crawley) Management Company Limited
18
Foundry Meadows (Bexhill) Residents Management Company Limited
Foxes Chase (Anlaby) Residents Management Company Limited
Foxfields (Stoke-on-Trent) Management Company Limited
Foxley Park (Dereham) Residents Management Company Limited
Garden Valley (Aylesham) Residents Management Company Limited
13
Garendon Park Residents Management Company Ltd
George Ward Gardens (Melksham) Management Company Limited
Germany Beck (Fulford) Management Company Limited
Gilden Park (Old Harlow) Resident Management Company Limited
11
Gipping Mill (Great Blakenham) Residents Management Company Limited
Glan Yr Afon (Swansea) Management Company Limited
Golwg Y Glyn (Fforest) Management Company Limited
9
Gotherington Grange Resident Management Company Limited
Grange Paddocks (Stanway) Residents Management Company Limited
Persimmon Plc Annual Report 2025 – 189Financial statementsGovernance Other informationStrategic report
34 Details of all subsidiary undertakings
continued
Resident Management Companies continued
Company name continued
Grangewood Park (Burnham On Crouch) Residents Management
Company Limited
Grayling Gate (Ringmer) Management Company Limited
Grays Court (Orpington) Residents Management Company Limited
13
Great Western Park (Didcot) No 1 Management Company Limited
Great Western Park (Didcot) No 2 Management Company Limited
Great Western Park (Didcot) No 3 Management Company Limited
Great Woodcote Park Exeter Management Company Limited
Greatham Meadow Resident Management Company Limited
19
Greenacres (Easington) Management Company Limited
Greenfields (Narberth) Management Company Limited
Greenwood Place (Chinnor) Management Company Limited
2
Greetwell Fields (Lincoln) Residents Management Company Limited
Griffin Wharf (Ipswich) Residents Management Company Limited
Grove Street (Raunds) Residents Management Company Limited
Hailes Wood (Elsenham) Residents Management Company Limited
Hakewill Mews (Thurston) Residents Management Company Limited
Hamilton Gate (Frinton) Residents Management Company Limited
Hampton Gardens Phase 3 (Peterborough) Residents Management
Company Ltd
Hampton Park (Littlehampton) Residents Management Company Limited
Hansons Reach (Stewartby) Residents Management Company Limited
Hanwell Chase (Banbury) Residents Management Company Limited
Harbourside View (Portchester) Management Company Limited
Harbury Lane (Warwick) Management Company Limited
Hardings Wood (Kidsgrove) Residents Management Company Limited
8
Harebell Meadows and Hartburn Grange Residents Management
Company Limited
8
Harford Mews Ivybridge Management Company Limited
1
Harlands Park (Uckfield) Residents Management Company Limited
Harlestone Grange (Dallington) Management Company Limited
20
Harlow Fields (Mackworth) Residential Management Company Limited
Harlow Hill Grange (Harrogate) Management Company Limited
Harpur Hill (Buxton) Residents Management Company Limited
8
Harrow View West (Harrow) Residents Management Company Limited
Hartley Grange (Whittlesey) Residents Management Company Limited
Hartnells Farm Management Company Limited
Hastings Place (Bentley) Management Company Limited
Hatchwood Mill (Winnersh) Management Company Limited
Hathern Road (Shepshed) Management Company Limited
1
Hauxley Grange (Amble) Residents Management Company Limited
Hauxley View (North East) Management Company Limited
Hawthorn Chase (Aston Clinton) Residents Management Company Limited
Hawthorn Park (Leominster) Management Company Limited
Hawthorne Farm (Clitheroe) Management Company Limited
8
Haybridge (Wells) Management Company Limited
9
Haywards Gardens (Kegworth) Man Co. Limited
20
Haywood Heights (Writhlington) Management Company Limited
Hazel Brook Management Company Limited
13
Hazelmere (Flockton) Management Company Limited
Heathfield Gardens (Phase 7) Management Company Limited
Heathpark Wood (Windlesham) Management Company Limited
Hellingly 415 Residents Management Company Limited
Hellingly 416 Management Company Limited
Hellingly 418 Management Company Limited
Hepburn Chase Management Company Limited
1
Heritage Gate (Llantwit Major) Residents Management Company Limited
Heritage Green (Newbottle) Management Company Limited
21
Heritage Park (Shinfield) Residents Management Company Limited
Heritage Park (Sutton Courtenay) Residents Management Company Limited
Herne Vale Ilminster Management Company Limited
Herons Park (Angmering) Management Co Ltd
Herrington Grange (Philadelphia) Management Company Limited
Hethersett Residents Management Company Limited
11
Heugh Hall (Coxhoe) Residents Management Company Limited
Higham Lane Management Company Limited
Highfield Farm (West Melton) Residents Management Company Limited
Highfield Gardens (Trowbridge) Management Company Limited
8
Highfields Management (Littleport) Limited*
9
Highland Park Estate Management Company Limited*
22
Hill Barton Vale Exeter Management Company Limited
Hill Barton Vale Flats Exeter Management Company Limited
Hill Top View (Melton) Management Company Limited
Hillfield Meadows (Sunderland) Management Company Limited
Hillies View (Wombwell) Management Company Limited
Holdingham Grange (Sleaford) Residents Management Company Limited
Holly Fields (Birmingham) Management Company Limited
Homington Avenue (Swindon) Local Centre Management Company Limited
Honours Meadow (Rendlesham) Residents Management Company Limited
Horseshoe Meadows (Westbury) Management Company Limited
HRC (Ware) Residents Management Company Limited
Hunters Edge (Eaglescliffe) Residents Management Company Limited
Hurdle Court (Andover) Management Company Limited
Hydro (St Neots) Number One Management Company Limited
Imperial Park (Bristol) Management Company Limited
1
Ingleby (Barwick) Management Company Limited
Inglewood (Paignton) Management Company Limited
Iwade Meadows (Iwade) Management Company Limited
Financial statementsGovernance Other informationStrategic report190 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
34 Details of all subsidiary undertakings
continued
Resident Management Companies continued
Company name continued
Iwade Meadows (Yalding Apartments Plots 74-79) Management
Company Limited
James Avenue (Calne) Management Company Ltd
23
Jasmine Gardens Management Company Limited
Jubilee Gardens (Warminster) Management Company Ltd
Jubilee Rise (Shepshed) Management Company Limited
KBM and Foxfields Residents Management Company Limited
4
Kenilworth Gate Management Company Limited
Kennedy Place (Ulverston) Management Company Limited
Kings Grove Cranbrook Management Company Limited
Kingsbridge Court (Gorseinon) Management Company Limited
Kingsbury Gardens (St Albans) Residents Management Company Limited
Kingsbury Meadows (Wakefield) Management Company Limited
Kingsgate (Northallerton) Residents Management Company Limited
Kingsley Mews Management Company Limited
Kingsmead (Gloucester) Management Company Limited
Knights Court (Old Sarum) Management Company Limited
Knightswood Place (Rainham) Residents Management Company Limited
Ladgate Woods (Middlesbrough) Management Company Limited
Lakedale Whiteley Meadows (North Whiteley) Management
Company Limited
Lakeside Edge (Peterborough) Residents Management Company Limited
Lambourn Meadow (Thatcham) Management Company Limited
Laneside (Morley) Residents Management Company Limited
Langford Bridge (Newton Abbot) Residents Management Company Limited
Larkbear Management Company Limited
9
Lauder Mews Crediton Management Company Limited
Launds Field (Galgate) Management Company Limited
Laureate Heights Sidmouth Management Company Limited
Lavender Fields (South Wootton) Residents Management Company Ltd
Liberty Gate (Lakenheath) Residents Management Company Limited
Lime Tree Court Derby Management Company Limited
Limes Place (Upper Harbledown) Residents Management Company Limit ed
Lindale Park (Alverthorpe) Management Company Limited
Lindley Moor Meadows (Huddersfield) Management Company Limited
Lingfield Meadows (Houghton) Management Company Limited
Little Maltby Residents Management Company Limited
Llanilid Management Company Limited
Llanilltern Apartments RMC Ltd
15
Llanilltern Village RMC Ltd
15
Llys Ystrad (Bridgend) Management Company Limited
23
Lodmoor Sands (Weymouth) Management Company Limited
9
Longbridge Place (Longbridge) Management Company Limited
Longleaze Management Company Limited
Low Moor Meadows (Morley) Management Company Limited
Low Street (Sherburn In Elmet) Management Company Limited
21
Lowen Bre Truro Management Company Limited
Lucknam Crescent (Swindon) Management Company Limited
Lythalls Lane (Coventry) Management Company Limited
1
Maes Dyfed Management Company Limited
Maes Y Parc (Cross Hands) Management Company Limited
Maes Y Rhos (Ystradgynlais) Management Company Limited
Maiden Vale (Ryhope) Management Company Limited
Malt House Meadows (West Sompting) Residents Management
Company Limited
Malvern Rise (Malvern) Management Company Limited
Malvern Vale (Malvern) Management Company Limited
1
Manor Farm (Doncaster) Management Company Limited
Manor Farm (Micklefield) Management Company Limited
Manor Gardens (Selsey) Management Company Limited
Manor Park Residents Company Ltd
24
Manor Park Sprowston Residents Management Company Limited
11
Manor Place (Maidenhead) Residents Management Company Limited
Maple (129) Limited
25
Maple (221) Limited
9
Mariners Walk (Swansea) Apartment Management Company Limited*
Mariners Walk (Swansea) Management Company Limited*
Marshfoot Lane (Hailsham) Residents Management Company Limited
Martello Park (Pembroke) Management Company Limited
Martineau Gardens Harborne Management Company Limited
1
Mascalls Grange (Paddock Wood) Residents Management
Company Limited
Meadow View (Oundle) Management Company Limited
Meadow View (Redditch) Resident Management Company Limited
1
Mendip Chase Management Company Limited
9
Meon Way Gardens Management Company Limited
1
Merchants Walk Cullompton No 2 Management Company Limited
Mercians Place Management Company Limited
1
Meridian Place (Hertford) Residents Management Company Ltd
Merlins Lane (Scarrowscant) Management Company Limited
Mersey View (Bromborough Pool) Management Company Limited
6
Mill Cross (Pevensey) Management Company Limited
Mill Gardens (Cullompton) Management Company Limited
Mill Valley (Pevensey) Residents Management Company Limited
Mill View (Willingdon) Management Company Limited
Millbeck Grange (Bowburn) Management Company Limited
Millennium Farm (New Waltham) Management Company Limited
Persimmon Plc Annual Report 2025 – 191Financial statementsGovernance Other informationStrategic report
34 Details of all subsidiary undertakings
continued
Resident Management Companies continued
Company name continued
Monkswood (Sacriston) Management Company Limited
Montfort Place (Odiham) Management Company Limited
11
Montgomery Place (Frome) Management Company Ltd
Moorfield (Easington) Management Company Limited
Moorfield Park Management Company Limited
11
Moorlands Walk (Sherburn) Management Company Limited
Morwick Green (Leeds) Management Company Limited
Mown Meadows (Crook) Residents Management Company Limited
Mulberry Grange (Castleford) Management Company Limited
Mulberry Grove (St Fagans Cardiff) Management Company Limited
Nautica Management Company Limited
25
Nelson’s Park (North Walsham) Residents Management Company Limited
Newman Fields (Soham) Residents Management Company Ltd
NGP Management Company (Cell A) Limited*
4
NGP Management Company (Cell D) Limited*
4
NGP Management Company (Cell E) Limited*
4
NGP Management Company (Cell F) Limited*
4
NGP Management Company (Commercial) Limited*
4
NGP Management Company (Town Centre) Limited*
4
NGP Management Company Residential (Cell G) Limited*
4
Norton Hall Meadow Management Limited
11
Oak Heights (Northiam) Residents Management Company Limited
13
Oak Hill Rise (Chippenham) Management Company Limited
Oakcroft Chase (Stubbington) Management Company Limited
Oakhurst Village (Shirley) Management Company Limited
Oakland Gardens (Wilthorpe) Management Company Limited
Oakley Grange & Eden Villas (Cheltenham) Management Company Limited
1
Oakwood Meadows Phase 4 (Stanway) Residents Management
Company Limited
Oakwood Park (Wymondham) Residents Management Company Limited
Oakwood View (Brackla) Management Company Limited
Oakwood View (Weston-Super-Mare) Management Company Limited
Oast Court Farm Management Company Limited
26
Orchard Croft (Diss) Residents Management Company Limited
Orchard Grove (Coxheath) Residents Management Company Ltd
Orchard Leaze Management Company Limited
13
Orchard Manor (Cheddington) Residents Management Company Limited
Orchard Meadows (Iwade) Residents Management Company Limited
Orchard Mews Pershore Management Company Limited
1
Otterham Park (Rainham) Residents Management Company Limited
Oundle Walk (Oundle) Residents Management Company Limited
8
Oxley Springs (Milton Keynes) Management Company Limited
Oxley Springs 8B (Milton Keynes) Management Company Limited
P6 Wellington Gate (Grove) Managment Company Limited
Paddocks 21 (Andover) Management Company Limited
Palmerston Heights Plymouth Management Company Limited
Paragon Park (Coventry) Management Company Limited
Parc Brynderi (Llanelli) Management Company Limited
Parc Y Fron (Carmarthen) Limited
Parc Yr Onnen (The Limes) Management Company Limited
Parklands (Hessle) Residents Management Company Limited
Parrett Gardens (Langport) Management Company Limited
Pavilion Gardens (Monkton Heathfield) Management Company Limited
Pedlars Meadow (Swaffham) Residents Management Company Limited
Pembridge Court (Clehonger) Residents Management Company Limited
1
Pen Y Castell (Caerphilly) Management Company Limited
Penny Pot Lane (Harrogate) Management Company Limited
4
Perry Park View (Perry Barr) Management Company Limited
1
Persimmon Gardens (Hindley) Management Company Limited
8
Persimmon Gardens (Martham) Residents Management Company Limited
Persimmon Grange Framlingham Residents Management Company Limited
Persimmon Homes The Oaks (Selly Oak) Management Company Limited
1
Phoenix Wharf (West Bromwich) Management Company Limited
1
Picket 20 Management Company Limited
Picket Twenty Two (Andover) Management Company Limited
Pinewood Grange (Castleford) Management Company Limited
Port Marine Management Limited
Porth Y Dyffryn (Merthyr Tydfil) Residents Management Company Limited
Portland Park (Ashington) Management Company Limited
Pottery Gardens (Cheadle) Residents Management Company Limited
8
Poverty Lane Management Company Limited
8
Priory Green (Chilton Polden) Management Company Limited
1
Priory Meadows (Bodmin) Management Company Limited
Q Gate and Jubilee Place Management Company Limited
8
Quantock View Management Company Limited
Quinta Mews Management Company Limited
27
Rackheath Residents Management Company Limited
Rainton Gardens (Chilton Moor) Management Company Limited
Rainton Meadows (Chilton Moor) Management Company Limited
21
Ramsdell (Ashford Hill) Management Company Limited
Rectory Lane (Standish) Management Company Limited
Redhayes Management Company Limited
28
Redland Grange (Cottenham) Residents Management Company Limited
Regency Grange (Forest Town) Management Company Limited
Regent Park (Calne) Management Company Limited
Regents Place (Chellaston) Management Company Limited
1
Regents Village, Cheltenham Management Company Limited
8
Financial statementsGovernance Other informationStrategic report192 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
34 Details of all subsidiary undertakings
continued
Resident Management Companies continued
Company name continued
Repton Park 18 (Ashford) Residents Management Company Limited
Repton Park 19-23 (Ashford) Residents Management Company Limited
Repton Park 8 & 10 (Ashford) Residents Management Company Ltd
Ridge Walk, Whiteley Meadows (North Whiteley) Management
Company Limited
Rivendell (Gedling) Management Company Limited
River Walk Management Company Limited
Riverbourne Fields Management Company Limited
Rose Manor (Hadleigh) Residents Management Company Limited
Salterns (Terrington) Residents Management Company Limited
Saltram Meadow Plymouth Management Company Limited
Samford Gardens (Capel St Mary) Residents Management Company Limited
Sandfield Walk (Nottingham) Management Company Limited
Sandgate Drive (Kippax) Management Company Limited
Sandpipers (Minster) Residents Management Company Limited
Saxon Fields (Bridgwater) Management Company Limited
Saxon Grange (Shaftesbury) Management Company Limited
Saxon Grove (Purton) Management Company Limited
Saxon Meadow (Sutton on Trent) Residents Management Company Limited
Saxons Chase (Headcorn) Residents Management Company Limited
Scarlett Mews (Tiptree) Residents Management Company Limited
Scholar’s Green (Northampton) Residents Management Company Limited
12
Seaside Lane (Easington) Management Company Limited
Seaton Vale (Ashington) Residents Management Company Limited
Sharpes Meadow (Heybridge) Residents Management Company Limited
Sherborne Fields (Basingstoke) Management Limited
Sherborne Fields Apartments Ph6 (Basingstoke) Management
Company Limited
Shilton Place (Coventry) Management Company Ltd
29
Shirewood (Beighton Road) Management Company Limited
Silver Hill (Preston) Management Company Limited
Silverwood (Garforth) Management Company Limited
Solway View (Workington) Management Company Limited
Sovereign Quarter (Gillingham) Management Company Limited
Speckled Wood (Carlisle) Management Company Limited
Spring Meadows (Darwen) Management Company Limited
11
St Andrews Park (Vine Lane 2A) Management Company Limited
1
St Andrews Park 2B/3A (Churchill Road, Uxbridge) Management
Company Limited
20
St Andrews Ridge (Swindon) Management Company Limited
St Dunstans Place (Burbage) Management Company Limited
St Edeyrns Apartments (Cardiff) RMC Limited
St Edeyrns Village (Cardiff) Residents Management Company Limited
St Edmunds (Frome) Management Company Limited
St George (Lancaster) Management Company Limited
St Georges Keep Management Company Limited
St James Park (Bramley) Residents Management Company Limited
St Johns (Lichfield) Management Company Limited
St Michaels Place (Colchester) Residents Management Company Limited
St Michaels Way (South Ryhope) Residents Management Company Limited
St Oswalds Park (Gloucester) Management Company Limited
1
St Oswalds Park Leachate Drain Management Company Limited*
25
St Peters Place (Salisbury) Management Company Limited
Stanbridge Meadows (Petersfield) Management Company Limited
Stanford Meadows (Stanford-le-Hope) Residents Management
Company Limited
Stanton Chase (Swindon) Management Company Limited
Staynor Hall 4 (Selby) Residents Management Company Limited
Staynor Hall K (Selby) Management Company Limited
Stephenson Park (Wallsend) Residents Management Company Limited
Stortford Fields (Bishops Stortford) (Persimmon) Resident Management
Company Limited
Strawberry Fields Penryn Management Company Limited
Stream View Management Limited
27
Swan Park (Dawlish) Management Company Limited
Sycamore Rise (Thame) Residents Management Company Limited
Tanners Meadow (Strood Green) Management Company Limited
2
Tarraby View (Carlisle) Management Company Limited
Teasdale Place (Carlisle) Management Company Limited
Temple Gate (Burgess Hill) Resident Management Co Ltd
Templefields (Consett) Management Company Limited
The Acorns (Shirley) Management Company Limited
1
The Alders (Gilwern) Residents Management Company Limited
The Blossoms (Blackburn) Management Company Limited
11
The Boulevards (East Tilbury) Residents Management Company Limited
The Boulevards (Newport) Residents Management Company Limited
The Bridge (Dartford) 29 and 31A Residents Management Company Limited
The Bridles (Ffos Las) Management Company Limited
15
The Carriages (Burscough) Management Company Limited
The Copse (Bridgwater) Management Company Limited
24
The Cottons (Holmes Chapel) Management Company Limited
The Croft (Burgess Hill) Residents Management Company Limited
The Edge (Hempstead) Management Limited
The Glassworks (Knottingley) Management Company Limited
The Goldings Newquay Management Company Limited
The Grange (Chalfont St Peter) Management Company Ltd
The Grange (Chepstow) Limited
Persimmon Plc Annual Report 2025 – 193Financial statementsGovernance Other informationStrategic report
34 Details of all subsidiary undertakings
continued
Resident Management Companies continued
Company name continued
The Hamptons (Newcastle) Resident Management Company Limited
8
The Haven (Swansea) Management Company Limited
The Hawthorns (Market Harborough) Management Company Limited
The Heath (Sandbach) Management Company Ltd
11
The Hedgerows (Alsager) Management Company Ltd
8
The Heights (Newark) Residents Management Company Limited
The Lancasters (Cambridge) Residents Management Company Limited
The Landings (Waddington) Residents Management Company Limited
The Links (Machynys East) Management Company Limited
9
The Lodge (Sketchley) Management Company Limited
The Maples (Bewdley) Management Company Limited
8
The Maples (Cressing) Residents Management Company Limited
The Maples (NGP) Management Company Limited
The Maples (Weston) Residents Management Company Limited
The Mile (Pocklington) Management Company Limited
The Oaklands (NGP) Residents Management Company Limited
The Paddocks (Aintree) Management Company Limited
8
The Paddocks (Farcet) Residents Management Company Limited
The Paddocks (Highworth) Management Company Limited
8
The Pastures (Lowton) Management Company Limited
8
The Pavilion (Mansfield) Residents Management Company Limited
The Pinnacles Management Company (Thamesmead) Limited
The Poppies (Harleston) Management Company Limited
The Poppies Management Company Limited
The Quadrant (Whitney Crescent) Management Limited
24
The Reeds Lower Halstow Management Ltd
27
The Ridge (Lyde Green) Management Company Limited
13
The Rosary (Emersons Green) Management Company Limited
The Rydons Exeter Number Two Management Company Limited
The Sands (Durham) Management Company Limited
The Shires (Oswaldtwistle) Management Company Ltd
11
The Swallows Management Company Limited
24
The View (Redditch) Management Company Limited
1
The Weald (Easingwold) Management Company Limited
The Wickets (Penenden Heath) Residents Management Company Limited
The Willows (Downham Market) Residents Management Company Limited
The Windmills (Kirton) Residents Management Company Limited
Thonock Green (Gainsborough) Management Company Limited
Thornley Woods (Gateshead) Management Company Limited
Tilbury Fields (Oxford) Management Company Limited
11
Tir Y Bont (Bridgend) Management Company Limited
Towcester Grange (Apartments) Residents Management Company Limited
Towcester Grange (Towcester) Residents Management Company Limited
20
Trehenlis Gardens (Helston) Management Company Limited
Trelawny Place (Felixstowe) Residents Management Company Limited
Trevelyan Grange (Morpeth) Residents Management Company Limited
Trevethan Meadows Liskeard Management Company Limited
Trevithick Manor Park (Newquay) Management Company Limited
Trinity Fields (Clacton) Residents Management Company Limited
Trinity Pastures (Calvert Lane Hull) Residents Management Company Limited
Tundra Point (Emersons Green) Management Company Limited
Valley Heights (Frome) Management Company Limited
1
Valley Park (Didcot) Management Company Ltd
8
Village Mews (Southowram) Management Company Limited
Walmsley Park (Leigh) Management Company Ltd
8
Watercress Way Management Company Limited
27
Waterfield Place (Market Harborough) Residential Management
Company Limited
Watermans Park (Gravesend) Residents Management Company Limited
6
Waters Edge (Buckshaw) Management Company Limited
Waterside at the Bridge Management Company Limited
Watling Place (Newington) Residents Management Company Ltd
Weavers Meadow Estates Management Company Limited
Weavers Meadow Phase 2 (Hadleigh) Residents Management
Company Limited
Weavers Place (Earl Shilton) Management Company Limited
Weavers Place (Skelmanthorpe) Management Company Limited
Weavers View (Pleasley Hill) Residents Management Company Limited
Weavers Wharf Apartments (Coventry) Management Company Limited
Weldon Park (Apartments) Residents Management Company Limited
30
Wellington Gate (Grove) Management Company Limited
Wellington Gate (Maresfield) Management Company Limited
Wellington Mount (North Quadrant) Management Company Limited
Wentworth Green Management Company Limited
West Wick Management Company Limited*
25
Westhaven Apartments (Barry) Residents Management Company Limited
Westhoughton (Lee Hall) Residents Management Company Limited
8
Weston Park Limited
Westvale Park (Horley) Management Company Limited
2
Westwood Park (Churwell) Management Company Limited
White House Farm (Emersons Green) Management Company Limited
9
White Rose Park (Norwich) Residents Management Company Ltd
Whitewood Park (Bristol) Management Company Limited
Whittington Walk (Worcester) Management Company Limited
1
Whitworth Dale Management Company Limited
Willow Court (Abergavenny) RMC Limited
Willow Park (Aylsham) Management Company Limited
Financial statementsGovernance Other informationStrategic report194 – Persimmon Plc Annual Report 2025
Notes to the financial statements continued
For the year ended 31 December 2025
34 Details of all subsidiary undertakings
continued
Resident Management Companies continued
Company name continued
Windmill View (Stanground) Residents Management Company Limited
Windrush Place Witney Management Company Limited
Wombwell (Barnsley) Management Company Limited
Woodhorn Meadows (Ashington) Residents Management Company Limite d
Woodland Gardens (Pyle) Management Company Limited
Woodland Rise (Great Cornard) Residents Management Company Limite d
Woodlark Place (Newbury) Residents Management Company Limited
Worcester Gate (Worcester) Management Company Limited
1
Wykham Park (Banbury) Management Company Ltd
8
Yew Tree Gardens (Tuffley) Management Company Limited
1. Queensway House, 11 Queensway, New Milton, Hampshire, BH25 5NR
2. Homer House, 8 Homer Road, Solihull, West Midlands, B91 3QQ
3. Kent Gateway Block Management Fort Pitt House, New Road, Rochester, ME1 1DX
4. Cheviot House, Beaminster Way East, Newcastle upon Tyne, Tyne and Wear, NE3 2ER
5. Fountain House, Southwell Road West, Mansfield, Nottinghamshire, NG18 4LE
6. Gateway House, 10 Coopers Way, Southend-on-Sea, Essex, SS2 5TE
7 . Persimmon House, Birmingham Road, Studley, Warwickshire, B80 7BG
8. Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, CW6 9DL
9. Fisher House, 84 Fisherton Street, Salisbury, SP2 7QY
10. 20 Station Road, Hinckley, Hinckley, Leicestershire, LE10 1AW
11. RMG House, Essex Road, Hoddesdon, Hertfordshire, EN11 0DR
12. A5 Optimum Business Park, Optimum Road, Swadlincote, DE11 0WT
13. Stonemead House, 95 London Road, Croydon, Surrey, CR0 2RF
14. Persimmon Homes, 3 Waterside Way, Northampton, NN4 7XD
15. 46 Whitchurch Road, Cardiff, CF14 3LX
16. The Dock, Station Road, Kings Langley, Hertfordshire, WD4 8LZ
17. Burlington House Botleigh Grange Business Park, Hedge End, Southampton, SO30 2A F
18. Unit 8, The Forum, Minerva Business Park, Peterborough, PE2 6FT
19. Persimmon House Radcliffe Crescent, Thornaby, Stockton on Tees, TS17 6BS
20. 2 Hills Road, Cambridge, CB2 1JP
21. C/O Greenbelt Group, 1175 Century Way, Thorpe Park, Leeds, West Yorkshire, LS15 8Z B
22. Suite 7 Aspect House, Pattenden Lane, Marden, Kent, TN12 9QJ
23. Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN
24. Unit 1,2 & 3 Beech Court Wokingham Road, Hurst, Reading, RG10 0RU
25. 250 Aztec West, Almondsbury, Bristol, BS32 4TR
26. Acorn Estate Management, 9 St Marks Road, Bromley, Kent, BR2 9HG
27. Scholars House, 60 College Road, Maidstone, Kent, ME15 6SJ
28. Woodwater House, Pynes Hill, Exeter, Devon, EX2 5WR
29. 1st Floor Lancaster House, 67 Newhall Street, Birmingham, B3 1NQ
30. Davidson House Unit 17C Meridian East, Meridian Business Park, Leicester,
Leicestershire, LE19 1WZ
* Private limited company.
Persimmon Plc Annual Report 2025 – 195Financial statementsGovernance Other informationStrategic report
Shareholder information
Band analysis as at 31 December 2025
Size of shareholding
Number of
shareholders
%
of shareholders
Number of
shares
%
of shares
1–5,000 5,677 88.48 3,218,991 1.60
5,001–50,000 396 6.17 7,073,620 4.11
50,001–250,000 179 2.79 20,983,820 10.89
250,001–999,999,999 16 4 2.56 289,404,695 83.40
Total 6,416 100.0 320,681,126 100.00
Share price – year ended 31 December 2025
Price at 31 December 2025 1,358.5p
Lowest for year 1,037.5p
Highest for year 1,405.0p
The above share prices are the closing share prices as derived from the London Stock Exchange Daily Official List.
Financial calendar 2026
Annual General Meeting 30 April 2026
Trading Update 30 April 2026
Ex-Dividend Date of 40p final dividend 18 June 2026
Record Date of 40p final dividend 19 June 2026
Payment of final dividend of 40p 10 July 2026
Announcement of Half-Year Results 6 August 2026
Trading Update 12 November 2026
Five-Year Record
2025 2024 2023 2022 2 0 21
Unit sales 11,905 10,664 9,922 14,868 14,551
Housing revenue £3,312.0m £2,863.6m £2,537.6m £3,696.4m £3,449.7m
Average selling price £278,203 £268,499 £255,752 £248,616 £237,078
Profit from operations £472.1m £405.2m £354.5m £1,006.5m £966.7m
Profit before tax £445.6m £395.1m £359.4m £1,012.3m £973.0m
Basic earnings per share 100.7p 92.1p 82.4p 247.3p 248.7p
Diluted earnings per share 99.6p 91.1p 81.9p 245.3p 247.6p
Cash return/dividend per share 60.0p 60.0p 80.0p 235.0p 235.0p
Net assets per share 1,127.0p 1,096.1p l,070.2p 1,077.0p 1,135.7p
Total shareholders’ equity £3,614.1m £3,506.6m £3,418.5m £3,439.3m £3,625.2m
Return on capital employed 11.7% 11.1% 10.5% 30.4% 35.8%
All figures stated before exceptional items, goodwill amortisation/impairment, legacy buildings provision and
includes land creditors where applicable.
Other information
Financial statementsGovernance Other informationStrategic report196 – Persimmon Plc Annual Report 2025
Directors
Roger Devlin
Chairman
Dean Finch
Group Chief Executive
Andrew Duxbury
Chief Financial Officer
Annemarie Durbin
Senior Independent Director
Andrew Wyllie CBE
Non-Executive Director
Alexandra Depledge MBE
Non-Executive Director
Colette O’Shea
Non-Executive Director
Paula Bell
Non-Executive Director
Anand Aithal
Non-Executive Director
Company information
Company Secretary
Tracy Davison
Registered office
Persimmon House
Fulford, York YO19 4FE
Telephone: 01904 642199
Company number
1818486
Incorporated in England
Auditor
Ernst & Young LLP
Bankers
The Royal Bank of Scotland plc
Lloyds Banking Group plc
Barclays Bank PLC
HSBC plc
Handelsbanken plc
Santander BANCO S.A.
Financial PR Consultants
Teneo
The Carter Building, 11 Pilgrim Street
London EC4V 6RN
Telephone: 020 7353 4200
Email: persimmon@teneo.com
Registrars
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Telephone 0370 7030178
www.investorcentre.co.uk
Persimmon Plc’s commitment to environmental issues is reflected in this Annual Report,
which has been printed on Amadeus Silk. This product is made of FSC
®
-certified and
othercontrolled material. This document was printed by L&S using its environmental print
technology, which minimises the impact of printing on the environment. Vegetable-based
inks have been used and 99% of dry waste is diverted from landfill. The printer is a
CarbonNeutral
®
company. Both the printer and the paper mill are registered to ISO 14001.
Persimmon House
Fulford
York YO19 4FE
Telephone: (01904) 642199
Persimmon Plc Annual Report 2025
Persimmon Plc Annual Report 2025