Interim Management Statement

RNS Number : 6255C

Persimmon PLC

18 April 2013

 



INTERIM MANAGEMENT STATEMENT

THURSDAY 18 APRIL 2013

Persimmon Plc will hold its Annual General Meeting ("AGM") at 12 noon today at York Racecourse where the Chairman will make the following statement regarding current trading, financial performance and the outlook for the financial year.  This statement, which supplements the update given with the 2012 Final Results, covers the period from 1 January 2013 to date.

We have experienced a good start to 2013.  Visitor levels per site to our developments over the first fifteen weeks are c.5% stronger than for the same period in the prior year and cancellation rates are slightly improved year on year at c.16% (2012: c.17%).

We have already opened 52 of the c.90 new sites scheduled for the first half of 2013.  Our outlet network currently stands at 385 sites and we anticipate having c.390 sites offering new homes to customers by 30 June 2013 in line with our previous guidance.

We are encouraged by the announcements made in the Budget with respect to the Government's support both for customers wishing to enter the housing market and for those existing homeowners who aspire to move home.  These "Help to Buy" measures include the provision of a Government backed 20% shared equity scheme commencing on 1 April 2013 to support customers who wish to buy a new build home.  In addition, we look forward to working with the Government to develop the Government Mortgage Guarantee Scheme which is to be launched from 1 January 2014.  We anticipate that this new Scheme will help mortgage lenders provide greater access to mortgage credit with smaller customer deposits at affordable interest rates.

As a result of these "Help to Buy" announcements customer enquiries registered on our Persimmon Homes and Charles Church web sites increased. Up until mid March enquiry levels had been running c.24% ahead of the prior year but following the announcement of the "Help to Buy" measures this improvement increased further to c.30%.  We have experienced encouraging improvements in both visitor numbers and reservations at our developments over the last two weeks.  Whilst it remains too early to measure any increase in legal completions as a result of the "Help to Buy" Scheme, we remain confident of the strength of underlying demand for new homes in the UK and that these measures will support an increase in the number of new homes delivered by the industry over the medium term.

In the first fifteen weeks of the year our weekly private sales rate per site is c.4% ahead.  We currently have total forward sales, including legal completions already achieved for the current year, of £1.38 billion (2012: £1.24 billion) which is c.11% ahead of the prior year.

Persimmon remains well on track to deliver £1.9 billion (or £6.20 per share) of capital to shareholders over a nine and a half year period ending in 2021, whilst continuing to build a stronger and larger business.  Subject to shareholder approval at the General Meeting to be held immediately after the AGM today, the first payment of our Capital Return Plan of c.£228 million, or 75p per share, will be paid to shareholders on 28 June 2013.  The record date is 19 April 2013 and the shares trade ex-entitlement from 22 April 2013.

The Board regularly evaluates the progress that the Group is making towards delivering its stated long term strategy and we reported at the final results for 2012 in February that we were ahead of our initial projections.  Consequently the Board is pleased to announce today its intention to declare a dividend for 2014 of 10 pence per ordinary share.  This intended payment will accelerate approximately £30 million of the c.£287 million, or 10p of the 95p per share, payment currently scheduled for 2015.  The Board intends to seek approval for this dividend at next year's AGM with payment to follow in June 2014.  This demonstrates the Board's continuing commitment to deliver significant value to shareholders over the long term on a sustainable basis.   

As previously announced, Mike Farley, Group Chief Executive retires from Persimmon today and is succeeded by Jeff Fairburn, currently Group Managing Director.  I would like to take the opportunity on behalf of the Board to thank Mike Farley for his significant contribution to the success of Persimmon over his 30 year tenure.  We all wish him well in retirement.

Neil Davidson also retires from the Board today having completed nine years service as a non-executive director.  Neil receives all our thanks for his valuable contribution to Persimmon.

We will provide a further report on the progress the business has made in our trading update on Tuesday 2 July 2013.

For further information, please contact:                                 Simon Rigby

Mike Farley, Group Chief Executive                                        Kevin Smith

Jeff Fairburn, Group Managing Director                                 Lindsay Noton

Mike Killoran, Group Finance Director                                    Citigate Dewe Rogerson

Persimmon plc                                                                       Tel: [phone]

Tel: [phone] on the day                                    

Tel: [phone] thereafter

 

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