Final Results

Persimmon PLC
26 February 2007





                  RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

         Excellent performance in first full year for enlarged business

•  Record pre-tax profits* up 17.5% to £582.1m (2005: £495.4m), 11th successive
   year of profit increase

•  Final dividend increased by 72% to 32.7p (2005: 19.0p). Full year dividend
   increased by 50% to a record 46.5p (2005: 31.0p)

•  Earnings per share* up 16% to 137.5p (2005: 118.4p)

•  Revenue for the year grew 37% to £3.14bn (2005: £2.29bn)

•  Completions increased by 32% to 16,701 homes (2005: 12,636). Average selling
   price advanced by 4% to £188,129 (2005: £180,892)

•  Acquisition of Westbury successfully concluded: business integrated quickly
   and future platform for growth established

•  Free cash inflow of £523m** (2005: £109m) generated in the year. Cash
   generation and working capital control reflects major strength of enlarged
   business

•  Margin repair through the year following dilution from acquired Westbury
   sites: full year Group operating margin* maintained at top end of industry
   levels at 20.8% (2005: 23.1%). Second half margin of 21.6% increased from
   19.9% in first half

•  Strong high quality land bank supports future growth: land bank increased to
   80,085 plots, land acquired at attractive prices

•  Exciting strategic land opportunities: margins underpinned by the expected
   pull-through of 30,000 consented plots over the next three years

•  Healthy and competitive market: low cancellation rates of 15% (2006: 19%) and
   stable prospects whilst employment levels are good

•  Outlook: current forward sales are ahead of 2006 at c. £1.3bn with 120 new
   outlets to open in the next six months, placing Persimmon in a strong
   position

*  stated before one-off reorganisation costs of £15.4m
** stated before payment of remaining Westbury acquisition consideration


John White, Group Chairman said: '2006 was an exceptional year for Persimmon.
During the year we completed the acquisition of Westbury, achieved record
profit, increased our land bank, whilst reducing debt ahead of our original
projections.

'In the light of our performance during 2006 and our expectations for the years
ahead, we are proposing to increase the final dividend by 72% on 2005. This
represents an increase for the full year dividend of 50% and is the second time
in 3 years we have increased our dividend by 50%.'


For further information, please contact:   
                                    
John White, Group Chairman                        Faeth Birch
Mike Farley, Group Chief Executive                Edward Simpkins
Mike Killoran, Group Finance Director             Kirsty Flockhart
Persimmon plc                                     Finsbury
Tel: [phone] on 26 February 2007     Tel: [phone]
Tel: [phone] thereafter

A webcast of today's analyst presentation will be available on 
www.persimmonhomes.com by 2pm today.


                              CHAIRMAN'S STATEMENT

It gives me great pleasure to report another record set of results for the
Persimmon Group. 2006 was an exceptional year for Persimmon. During the year we
completed the acquisition of Westbury, legally completed 16,701 homes, achieved
a record underlying pre-tax profit of £582.1 million, increased our land bank to
over 80,000 plots owned and under control, whilst reducing debt ahead of our
original projections.

Turnover for the year was £3.14 billion (2005: £2.29 billion). Pre-tax profit of
£582.1 million (before reorganisation costs) was 17.5% ahead of the prior year
(2005: £495.4 million). Basic earnings per share were 137.5p (2005: 118.4p) an
increase of 16%.

Operating profits (before reorganisation costs) increased by 23.7% to £652.7
million (2005: £527.8 million). These operating profits resulted in an increase
in operating margins in the second half of the year to 21.6% from 19.9% achieved
in the first half. Operating margins for the full year were maintained at the
top end of industry levels at 20.8% (2005: 23.1%) despite the dilution created
by the lower margin sites acquired with Westbury in January 2006.

The benefits of the actions we have taken to maximise synergy savings and
increase efficiencies following the acquisition of Westbury are reflected in the
improvement in these margins. We have realised synergy benefits of c. £32
million during 2006 and are confident that we will deliver annual synergy
savings in excess of £45 million from 2007 onwards.

Net borrowings (excluding finance leases) at the year end were £661 million; a
gearing level of 33% (2005: 16%). This is significantly lower than the c. 80%
gearing level immediately following the acquisition of Westbury and well below
the year end target of 50% we set ourselves originally.

Net cash inflow from operations for the year was very strong at £793 million
(2005: £347 million) generated from a combination of the realisation of
operating profits and the release of cash from tighter working capital control
of the acquired Westbury assets. As a result free cash inflow (before the
payment of the remaining consideration for the Westbury acquisition) amounted to
£523 million (2005: £109 million).

At the same time we have increased our land bank to 80,085 plots which compares
with c. 78,000 plots immediately following the acquisition and the 63,336 plots
owned and under control on 1st January 2006. Whilst the land market has remained
competitive, we have continued to acquire land at attractive prices,
particularly in the latter months of 2006. Our total land bank including plots
proceeding to contract is 94,655.

This strong land bank, along with our large strategic land holdings which, as
previously stated, is set to deliver over 30,000 consented plots over the next 3
years, will ensure that the business continues to prosper. We are confident that
the percentage of plots sourced through the strategic land portfolio over the
next few years will increase to a much higher level than the c. 25% we have
achieved in recent years.

In the light of our performance during 2006 and our expectations for the years
ahead, we are proposing to increase the final dividend to 32.7p, an increase of
72% on 2005 (19.0p), which will be payable on 20th April 2007 to shareholders on
the Register on 9th March 2007. Once again we are offering a scrip dividend
alternative, however this will be replaced in the future with a dividend
reinvestment plan. When added to the interim dividend for 2006 of 13.8p per
share the total dividend payable for the year will be 46.5p. This represents an
increase for the full year dividend of 50%. This is the second time in three
years we have increased our dividend by 50%. Indeed, over the last five years
dividends have increased at a compound rate of 27.7%. As a reflection of the
Board's continued confidence in the future of the business we have reduced the
dividend cover to a level of 2.9x. Looking ahead, we still intend to maintain
our policy of a progressive payout to shareholders.

Our balance sheet and free cash flow remain strong providing full flexibility to
invest in any suitable opportunities.

The first few weeks' sales of 2007 have been encouraging. Currently we have
total sales revenue for 2007 of c. £1.3 billion which is 4% ahead of the very
strong forward order book held in 2006 and the highest level it has ever been at
this stage of the year. We will be operating from a higher number of new outlets
over the next few months when compared with the same period of 2006, when we
were working through to completion a large number of old Westbury sites. We
therefore expect sales to move further ahead of the prior year over the next few
months ensuring a satisfactory start to 2007.

We have a great team behind us with many years of experience. We will, as
always, monitor the backdrop to our industry carefully, remain flexible in our
approach to all aspects of our business and react to opportunities as they
arise. We remain confident both of the underlying strength of the housing market
and in our ability to grow our business over future years whilst continuing to
reward our shareholders.

I would like to thank our staff for all their hard work during such an exciting
and demanding year.


                            CHIEF EXECUTIVE'S REVIEW

In my first year as Group Chief Executive, I am delighted to report that the
Persimmon Group has made significant progress: we achieved another set of record
results - our 11th successive year of profit increase, and we have successfully
completed a further step change in the scale and scope of Persimmon with the
acquisition of Westbury.

It has been a demanding year during which the market has remained healthy and
competitive. Persimmon's position as a truly national house builder with strong
branding has once again proved very successful. A buoyant start to 2006 was
followed by a slight slow down in April. An atypical resurgence during the
traditionally quieter summer months still needed the selective use of
incentives, especially for first time buyers, and the market remained
competitive towards the end of the year. With our successful targeted marketing
strategies and utilisation of part exchange we retained good reservation levels,
and turned our part exchange stock quickly, indicating that the second hand
market was still robust for sensibly priced houses.

Over the year we saw the average selling price for the Group increase to
£188,129 (2005: £180,892) a rise of 4%. In line with our prediction at the
beginning of the year, there was an actual 3% price increase to the value of our
homes in real terms. The remaining 1% was as a result of a change to our house
type mix across the three brands: Persimmon, Charles Church and Westbury
Partnerships.

We have seen a dramatic rise in our home completions to 16,701 (2005: 12,636)
for the year, a combination of organic growth and from the acquired Westbury
business. Following the integration of Westbury, completions in the second half
of the year increased to 8,475 (2005: 6,682) building on our first half
completions and further underlining our solid performance in 2006.

This year the Government has brought forward a number of initiatives for
consultation that affect the industry. The most significant of these is the
ambitious announcement that all new homes will be built to zero carbon
performance standards by 2016. This environmental issue is important to us all.
We will play our part by working with Government to achieve this demanding
target. We welcome the phasing of this requirement which will allow time to move
to a carbon zero home. With Space4 we are already well placed to meet the first
of the new standards that are set to be achieved by 2010.

There have also been a number of new consultations regarding the planning system
and the general direction is to be welcomed. The Government recognises that
changes to the system are required if we are to build the 200,000 plus homes
that need to be built per annum. The Barker II Review and PPS3 will help in this
delivery. As a leading house builder with a large strategic land holding we are
in a strong position to deliver much needed homes for the country and this is a
great opportunity for our business.

Divisional Structure

In order to establish a strong platform for future sustainable growth we have
restructured the business into 3 new divisions. This ensures that Persimmon,
Charles Church, and now Westbury Partnerships are fully integrated into each
division. As is Persimmon's hallmark, these divisions will retain their regional
flexibility to maximise the market opportunities within their areas. This new
focus will provide further scope for long term growth to the business. The
highly experienced management teams in each division have already shown from
their excellent performance this year the benefits of this restructuring.

North Division

This division has completed 4,069 (2005: 3,608) units, an increase on last year
of 13%, due mainly to organic growth. Selling prices have decreased slightly to
£166,584 (2005: £167,049) due to the impact of the increase in volumes delivered
by our successful Partnerships business in Scotland. Excluding Partnerships this
increase is more muted than we have seen in previous years, encouraging a more
sustainable market.

The strongest region was Scotland with good growth particularly in the
Partnerships business which completed 403 homes (2005: 227). We were delighted
to achieve recognition by the Prince's Trust for our regeneration scheme Anchor
Mills, Paisley, demonstrating the Group's skill in developing complex
refurbishment projects. The North East has achieved excellent results this year
after a more challenging market in 2005. It has completed 970 homes at an
affordable average selling price of only £161,444.

Central Division

This is the largest of the 3 divisions. Completions here increased substantially
to 6,156 (2005: 4,815) and whilst the business has continued to grow organically
it has also benefited from the Westbury acquisition. Although price growth
within the division as a whole was more modest at 5%, there has been a wide
variation in the level of increase.

In the Birmingham region two of our significant brownfield regeneration sites at
Cape Hill, Birmingham and Banner Brook, Coventry commenced with their first
legal completions this year and have sold very well. These substantial schemes
will benefit the business in these areas for a number of years. Whilst the
market in Birmingham remains competitive, lower average selling prices of our
homes in this area at £162,553 means we can maintain affordability.

In the North West there was little real price growth, however we saw substantial
growth in volume. The integration of Senator Homes into our Lancashire operation
has gone very well whilst providing a large number of sites in an area where it
has been difficult to obtain planning consents.

South Division

The South division has increased completions substantially as a result of the
Westbury acquisition to 3,578 (2005: 2,927). It has performed very well and
there is a consistent demand across the whole division.  We have seen sustained
price growth of 4% noticeably in the West Country and on into Wales where the
market remains strong.

In Wales we received a highly acclaimed regional winner award from the NHBC. Our
site manager was voted one of the top 8 managers in the house building industry,
demonstrating our continued commitment to quality. In addition the Group
achieved 5 Seal of Excellence Awards from the NHBC for our developments across
the whole of the UK.

Charles Church

Within Charles Church we have invested significantly and now have 10 operating
companies. We have increased completions by 125% to 2,898 completions (2005:
1,286). The decision was made to extend the range of homes offered and bring it
into the mid range market by reducing the average size of the Charles Church
homes. This has reduced the average selling price to £253,236 (2005: £283,260),
but without compromising our quality.

This year we have taken first completions from Charles Church Scotland and
Charles Church Wales, both companies benefiting from our existing strong
presence in these regions. Charles Church Wales has also benefited from the
integration of Westbury premium sites.

The acquisition of Westbury has provided Charles Church a step change in volume
which will lead to greater overhead efficiency and profitability in the future.

Westbury Partnerships

In 2007/08 the Government will be providing an additional 49,000 affordable
homes with the prospect of further new homes in the years to follow, resulting
in a significantly expanding sector. We have created a specialist business based
in Gloucester which is committed to the delivery of affordable houses in
England. This is a business which Westbury had been developing for a number of
years which we have refocused. The team is working on a number of projects in
the south that will provide affordable homes in the future. It should be noted
that there is a longer lead in period before these schemes commence. This is due
to the number of stakeholder interests that need to be accommodated for each
scheme. Westbury Partnerships completed 197 homes at an average selling price of
£91,036, making a positive contribution to Group profits in its first year of
trading.

I was particularly pleased that the Persimmon Group was one of the first
developers to receive a direct housing grant of £16.5 million from the Housing
Corporation, the Government's body responsible for the delivery of affordable
homes. This will accelerate the rate at which affordable houses are delivered by
the Group for local communities. In the current climate Westbury Partnerships is
set to grow significantly.

Space4

This is our state of the art manufacturing plant based in Castle Bromwich,
Birmingham producing Modern Method of Construction housing. We have carried out
a full business review since the acquisition of Westbury, both in the factory
and on site.

In the factory we have changed a number of suppliers to benefit from the
enhanced Group buying power. We have developed a new range of affordable houses
that are factory efficient, environmentally friendly and meet all Government
requirements regarding affordable housing standards. This has resulted in
positive feedback from housing associations regarding the future use of these
houses.

On site we have carried out a number of technical changes which will simplify
the process and lead to greater efficiency. In the future Westbury Partnerships
will begin to build this new housing range on sites controlled by Persimmon.

This year has been a transitional year and these changes when combined with the
environmental benefits of the system will lead to increased volumes and
profitability in 2007.

Land Bank

Our land bank has benefited significantly from the Westbury acquisition,
standing at 80,085 plots (2005: 63,336 plots) owned and under control, an
increase of 26%. There has been an expected increase to our plot cost ratio to
selling price due to the acquisition. A number of these plots have been
allocated to Charles Church which generally has a higher ratio. These plots will
sustain Charles Church into the future. In the second half of the year we were
particularly successful in the land market and our land bank now stands at 4.8
years. We continue to advocate holding a long land bank while the planning
environment remains difficult.

Our strategic land bank now stands at c. 23,200 acres and we have benefited from
a number of exciting and value enhancing opportunities deriving from the
Westbury portfolio. We have been successful in delivering c. 25% of our new
plots through strategic land, and in addition we believe there will be a major
benefit to the business by the delivery of 30,000 strategic plots in the next 3
years. Investment in this land will exceed £1 billion and will deliver organic
growth in terms of volumes and margins for the business in the medium and long
term. Our track record, balance sheet, and reputation, enables us to invest in
new long term opportunities that will sustain the business for many years.

Westbury Integration

As referred to in the Chairman's statement we have now successfully completed
the Westbury integration. The new staff have integrated well, enhancing our
business, and we are pleased they have embraced our culture.

The Westbury sites have been transferred throughout the entire Group with
particular benefit being derived by the Charles Church operation. Where
necessary we have cleared stock and put in tighter management controls over work
in progress, resulting in a substantial reduction in gearing.  We have carried
out a full review and reduced build costs by improving procurement and sub
contractor costs. In a number of cases our technical teams identified cost
effective solutions which have benefited our margins.

As a result of these efforts we are able to maximise the synergy benefits for
the Group which are c. £32 million for 2006. We are confident of increasing
these benefits in future years as the savings are rolled out on Westbury sites
and we make further procurement savings due to the size of the enlarged
business.

We are confident that Westbury Partnerships, when combined with Space4, will
provide much needed affordable housing that can be delivered in an energy
efficient and environmentally friendly manner.

Corporate Responsibility

We seek to integrate our policies and procedures into our normal business
activities in a constructive and responsible way to ensure that when building
new homes we take into account our impact on the environment, how we look after
our customers and how we treat our employees. Our positive and robust approach
to Corporate Responsibility will improve our reputation and lead to increased
customer satisfaction, employee loyalty and facilitate improvements in
efficiency and our business performance.

During 2006 we have continued our good work of previous years. Building energy
efficient housing has a significant role to play in tackling climate change and
we have again last year increased the average energy efficiency of our new
homes. We have also continued our Modern Methods of Construction project at
Irlam, Manchester and we were rewarded by winning the 'Best Innovation in the
Use of Materials and Products' for our Techno House at the 2006 House Building
Innovation Awards.

Last year we set ourselves a target to reduce the amount of waste generated for
each new home we built. We have reduced this waste by 17% to 9 tonnes per home
built and over two thirds of this is recycled.

We have continued to invest heavily in our Health and Safety management and
training. I am pleased to report that we have seen a reduction in major injuries
of 15% during the year, despite a 25% increase in the number of sites from which
we operate. We are again setting all our operating businesses performance
targets for Health and Safety to increase our performance in this vital area of
our business.

We continue to improve our quality control processes and invest heavily in
training our staff to improve customer service. All our staff are dedicated to
ensuring higher levels of customer satisfaction. During 2006 our surveys found
that in excess of 86% of our customers would recommend a friend to purchase a
new home from us.

Current Trading Outlook

The beginning of the year has started well despite the unexpected rise in
interest rates, and to date we have achieved a good level of reservations and
have not experienced any loss of purchaser confidence as a result of this rate
increase. This is further supported by the fact that our cancellation rate for
the first 7 weeks of 2007 is only 15% (2006: 19%) an improvement on the previous
year. At this time we have c. 7,000 forward sales with a total value of £1.3
billion, an increase over the same time last year. We have 120 new sites opening
in the next few months. Some will replace existing sites that are closing but
will lead to an overall increase of 50 in the number of outlets when compared to
2006.  The market remains competitive but we have seen some opportunity for
modest price growth on new outlets.

Summary

This year has seen the successful integration of the Westbury business and we
are very pleased to be able to report record profits.

Key corporate achievements this year have been the reduction of our net
borrowings to £661.3 million taking gearing to 33% at the year end and the
increase of our synergy savings to £32 million, both ahead of expectations. Our
total land bank is at an all time high at 94,655 plots (including land
proceeding to contract). In addition to this we continue to achieve success with
additional consented plots from our strategic land portfolio. Combining this
with growth opportunities from our Persimmon core housing, Charles Church brand,
Westbury Partnerships and Space4, we have an excellent platform on which to grow
the business in the future. We have a good forward sales position and a strong
balance sheet that will enable us to take advantage of any opportunities that
will enhance the business.

I would like to take this opportunity to thank all our staff for their
commitment to the successful divisional restructuring and the integration of
Westbury. With their support I am confident the business is in great shape and
in an excellent position to continue its growth in the future.



PERSIMMON PLC
Consolidated Income Statement for the year ended 31 December 2006

-------------------------------------------------------------------------------

                                                   Note         2006       2005
                                                                  £m         £m
-------------------------------------------------------------------------------

Revenue                                                      3,141.9    2,285.7

Cost of sales                                               (2,404.2)  (1,681.4)
-------------------------------------------------------------------------------

Gross profit                                                   737.7      604.3

Operating expenses                                             (85.7)     (76.5)
Share of results of jointly controlled entities                  0.7          -
-------------------------------------------------------------------------------

Profit from operations before reorganisation costs             652.7      527.8

Reorganisation costs                                2          (15.4)         -
-------------------------------------------------------------------------------

Profit from operations                                         637.3      527.8

Finance income                                                   0.5        0.8
Finance costs                                                  (71.1)     (33.2)
-------------------------------------------------------------------------------

Profit before tax                                              566.7      495.4

Income tax expense                                  3         (170.3)    (150.6)
-------------------------------------------------------------------------------

Profit after tax (all attributable to equity                   396.4      344.8
holders of the parent)

-------------------------------------------------------------------------------

Earnings per share (after reorganisation costs)
Basic                                               5          133.8p     118.4p
Diluted                                             5          133.1p     118.0p

Earnings per share (before reorganisation costs, net of
related tax credit)
Basic                                               5          137.5p     118.4p
Diluted                                             5          136.7p     118.0p



PERSIMMON PLC
Consolidated Balance Sheet at 31 December 2006

------------------------------------------------------------------

                                  Note          2006          2005
                                                  £m            £m
------------------------------------------------------------------

ASSETS
Non-current assets
Intangible assets                              470.4         182.0
Property, plant and equipment                   48.9          32.5
Investments                                      2.8         169.1
Trade and other receivables                     11.5             -
Deferred tax assets                             62.8          33.3
------------------------------------------------------------------
                                               596.4         416.9

------------------------------------------------------------------
Current assets
Inventories                                  2,910.8       2,197.9
Trade and other receivables                    178.7         107.2
Cash and cash equivalents            8          18.9          10.7
------------------------------------------------------------------
                                             3,108.4       2,315.8

------------------------------------------------------------------
Total assets                                 3,704.8       2,732.7

------------------------------------------------------------------

LIABILITIES
Non-current liabilities
Interest bearing loans and           8        (511.0)       (233.6)
borrowings
Forward currency swaps               8         (94.8)        (19.5)
Deferred tax liabilities                       (25.9)         (8.3)
Retirement benefit obligation                 (103.7)        (73.5)
Other liabilities                              (96.8)        (61.5)
------------------------------------------------------------------
                                              (832.2)       (396.4)

------------------------------------------------------------------
Current liabilities
Interest bearing loans and           8         (70.6)        (24.4)
borrowings
Forward currency swaps               8          (6.7)         (1.4)
Trade and other payables                      (657.3)       (529.4)
Current tax liabilities                       (106.7)        (89.1)
------------------------------------------------------------------
                                              (841.3)       (644.3)

------------------------------------------------------------------
Total liabilities                           (1,673.5)     (1,040.7)

------------------------------------------------------------------
Net assets                                   2,031.3       1,692.0

------------------------------------------------------------------

SHAREHOLDERS' EQUITY
Ordinary share capital issued                   29.9          29.5
Share premium                                  233.4         229.2
Own shares                                      (5.1)         (4.1)
Hedge reserve                                   (4.3)          0.6
Consolidation reserve                          281.4         281.4
Retained earnings                            1,496.0       1,155.4
------------------------------------------------------------------
Total shareholders' equity                   2,031.3       1,692.0

------------------------------------------------------------------



PERSIMMON PLC
Consolidated Cash Flow Statement for the year ended 31 December 2006

-----------------------------------------------------------------------------

                                               Note          2006        2005
                                                               £m          £m
-----------------------------------------------------------------------------

Cash flows from operating activities:
Profit for the year                                         396.4       344.8

Adjustments for:
Income tax expense                                          170.3       150.6
Finance income                                               (0.5)       (0.8)
Finance costs                                                71.1        33.2
Depreciation charge                                           9.6         7.3
Amortisation of intangible assets                             0.3           -
Share of results of jointly controlled entities              (0.7)          -
Profit on disposal of property, plant and equipment          (0.7)       (0.4)
Share-based payment charge                                    5.3         2.0
Other non-cash items                                         (8.3)       (0.4)
-----------------------------------------------------------------------------
Profit from operations before working capital movements     642.8       536.3

Movements in working capital:
Decrease/(increase) in inventories                          209.5      (191.4)
Decrease/(increase) in trade and other receivables           32.0        (8.5)
(Decrease)/increase in trade and other payables             (91.3)       10.2
-----------------------------------------------------------------------------
Net cash from operations                                    793.0       346.6

Interest paid                                               (57.6)      (25.8)
Interest received                                             0.5         0.8
Tax paid                                                   (146.8)     (144.5)
-----------------------------------------------------------------------------
Net cash from operating activities                          589.1       177.1

Cash flows from investing activities:
Acquisition of subsidiary                       6          (508.5)     (169.1)
Repayment of loan by jointly controlled                       1.0           -
entities
Purchase of property, plant and equipment                    (9.6)      (11.1)
Proceeds from sale of property, plant and                     2.6         1.3
equipment
-----------------------------------------------------------------------------
Net cash used in investing activities                      (514.5)     (178.9)
 
Cash flows from financing activities:
Repayment of borrowings                                    (265.8)      (26.2)
Drawdown of loan facilities                                 257.3        10.0
Finance lease principal payments                             (1.5)       (1.2)
Exercise of share options                                     3.2         6.1
Dividends paid to Group shareholders                        (59.6)      (58.6)
-----------------------------------------------------------------------------
Net cash used in financing activities                       (66.4)      (69.9)

-----------------------------------------------------------------------------
Increase/(decrease) in net cash and cash        7             8.2       (71.7)
equivalents
-----------------------------------------------------------------------------

Net cash and cash equivalents at beginning                    7.7        79.4
of year

-----------------------------------------------------------------------------
Net cash and cash equivalents at end of year    8            15.9         7.7

-----------------------------------------------------------------------------



PERSIMMON PLC
Consolidated Statement of Recognised Income and Expense for the year ended 31
December 2006

-------------------------------------------------------------------

                                                   2006        2005
                                                     £m          £m
-------------------------------------------------------------------

Effective portion of changes in fair value         (7.0)       (6.5)
of cash flow hedges
Actuarial losses on defined benefit pension        (4.7)       (7.6)
schemes
Taxation on items taken directly to equity          3.5         4.2
-------------------------------------------------------------------
Net expense recognised directly in equity          (8.2)       (9.9)

Profit for the year                               396.4       344.8
-------------------------------------------------------------------
Total recognised income for the year              388.2       334.9
(all attributable to equity shareholders of
the parent)
-------------------------------------------------------------------



PERSIMMON PLC
Notes


1.   Accounting policies

     The financial information has been prepared by applying the accounting
     policies and presentation that were applied in the preparation of the
     Group's published consolidated financial statements for the year ended 31
     December 2005, except for the following changes:

     Brand intangibles
     Internally generated brands are not held on the balance sheet. The Group
     carries assets in 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 is 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. 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.

     Retirement benefits
     The Group has assumed additional retirement benefit obligations following
     the acquisition of Westbury plc. The schemes have been stated at the
     present value of the obligation at the date of acquisition, less the fair
     value of the scheme assets. Further detail on the schemes will be
     presented in the financial statements for the year ended 31 December 2006.

2.   Reorganisation costs

     In January 2006, the Group acquired Westbury plc. To the extent that
     workers could not be redeployed, termination terms were agreed. Further
     costs were incurred in closing offices and terminating associated
     contracts.

3.   Taxation

     Taxation has been calculated at an effective rate of 30.0% of profit after
     financing costs (2005: 30.4%).

4.   Dividends

     It is proposed to pay a final dividend of 32.7p per share on 20 April 2007
     to shareholders on the register at the close of business on 9 March 2007.
     In accordance with IAS 10, the liability for the payment of the dividend
     has not been included in the financial statements.

     During the year the 2005 final dividend of 19.0p and the 2006 interim
     dividend of 13.8p were paid to shareholders

5.   Earnings per share

     Basic earnings per share is calculated by dividing the earnings
     attributable to ordinary shareholders of £396.4m (£407.3m before
     reorganisation costs of £15.4m, net of related tax credit of £4.5m)
     (2005: £344.8m) by the weighted average number of ordinary shares in
     issue, excluding those held by the Employee Share Ownership Trust and the
     Employee Benefit Trust which are treated as cancelled. The weighted
     average number of ordinary shares in issue during the year is 296,155,856
     (2005: 291,120,186).

     For diluted earnings per share, the weighted average number of ordinary
     shares in issue is adjusted to assume conversion of all dilutive
     potential ordinary shares from the start of the accounting period. The
     company has only one category of potentially dilutive ordinary shares:
     those share options and awards granted to Directors and employees where
     the exercise price is less than the average market price of the Company's
     ordinary shares during the year.

     The weighted average number of ordinary shares so calculated is
     297,918,639 (2005: 292,236,493).

6.   Business Combinations

     On 17 January 2006, the Group acquired the remaining share capital of
     Westbury plc for a total consideration (including the preliminary
     investment) of £664.0m. Westbury plc is the parent company of a group of
     companies involved in housebuilding. The transaction has been accounted for
     by the purchase method of accounting.

     Effect of the acquisition

     The acquisition had the following effect on the Group's assets and
     liabilities:

-----------------------------------------------------------------------------
Acquiree's net assets at the acquisition date    Book Value        Fair Value
                                                         £m                £m
-----------------------------------------------------------------------------

Intangible assets                                      43.1              61.9
Property, plant and equipment                          17.3              16.4
Investment in jointly controlled entities               3.1               3.1
Deferred tax assets                                    13.5              30.0
Inventories                                           944.6             922.4
Cash                                                  104.3             104.3
Bank overdrafts                                      (131.3)           (131.3)
Bank loans                                           (370.4)           (370.4)
Forward currency derivatives                          (24.5)            (24.5)
Other receivables and payables                        (94.9)           (114.6)
Retirement benefit obligation                         (38.4)            (38.4)
Deferred tax liabilities                               (2.2)            (21.7)
-----------------------------------------------------------------------------
Net assets                                            464.2             437.2
Goodwill on acquisition                                                 226.8
-----------------------------------------------------------------------------
Consideration paid (including costs)                                    664.0

Loan notes issued as consideration                                      (13.4)
Net cash and cash equivalents acquired                                   27.0
Existing investment in Westbury plc shares                             (169.1)
-----------------------------------------------------------------------------
Net cash outflow in year                                                508.5
-----------------------------------------------------------------------------

     During the period the Group acquired the remaining 50% interest in
     Wescott Holdings Limited.

     Westbury plc contributed £684.1m of revenue and £124.8m to gross profit
     for the period between the date of acquisition and the balance sheet
     date.

     There would have been no material change in the figures reported if the
     acquisition of Westbury plc had been completed on the first day of the
     financial year.

7.   Reconciliation of net cash flow to net debt

------------------------------------------------------------------------------

                                             Note           2006          2005
                                                              £m            £m
------------------------------------------------------------------------------

Increase/(decrease) in net cash and cash equivalents         8.2         (71.7)
Decrease in debt and finance leases                         10.0          17.4

------------------------------------------------------------------------------
Decrease/(increase) in net debt from cash flows             18.2         (54.3)
Net debt acquired                                         (394.9)            -
New finance lease obligations                               (1.9)         (1.4)
Non-cash movements                                         (17.4)        (16.3)

------------------------------------------------------------------------------
Increase in net debt                                      (396.0)        (72.0)
Net debt at 1 January                                     (268.2)       (196.2)

------------------------------------------------------------------------------
Net debt at 31 December                       8           (664.2)       (268.2)
------------------------------------------------------------------------------

8.    Analysis of net debt

--------------------------------------------------------------------------------

                                               Note           2006          2005
                                                                £m            £m
--------------------------------------------------------------------------------

Cash and cash equivalents                                     18.9          10.7
Bank overdrafts                                               (3.0)         (3.0)
--------------------------------------------------------------------------------
Net cash and cash equivalents                                 15.9           7.7
Bank loans                                                       -         (10.0)
US and UK senior loan notes due within one                   (48.8)        (20.2)
year
US, UK & EU senior loan notes due after more                (509.1)       (222.3)
than one year
Other loan notes due within one year                         (17.8)            -
Forward currency swaps                                      (101.5)        (20.9)
Finance leases                                                (2.9)         (2.5)

--------------------------------------------------------------------------------
Net debt at 31 December                         7           (664.2)       (268.2)
--------------------------------------------------------------------------------

9.   Status of financial information

     The financial information set out above does not constitute the Company's
     consolidated statutory accounts for the years ended 31 December 2006 or
     2005 but is derived from those accounts. Statutory accounts for the year
     ended 31 December 2005, under IFRSs, have been delivered to the Registrar
     of Companies, and those for the year ended 31 December 2006, under IFRSs,
     will be delivered following the Company's Annual General Meeting. The
     auditors have reported on these accounts; their reports were unqualified
     and did not contain statements under section 237(2) or (3) of the
     Companies Act 1985.

     The annual report will be posted to shareholders on Monday 19 March 2007.
     Copies of the annual report will also be available from the Company
     Secretary, Persimmon plc, Persimmon House, Fulford, York, YO19 4FE.

Further information on the Group can be found on the Persimmon website at:
www.persimmonhomes.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange