Interim Results

Persimmon PLC
29 August 2000

                           PERSIMMON PLC
       INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2000
                                 
Highlights
*     37% increase in earnings per share to 19.0p per share (1999:13.9p)
*     Interim dividend up 11.4% to 3.9p per share
*     Return on average capital employed increased to 21.5% (1999:17.6%)
*     Turnover increased 14% to £361.4m**
*     Legal completions of 3,483 homes, a marginal increase over the 3,354 
      in first half of 1999**
*     Average selling price increased to £103,770 (1999: £94,685)**
*     Operating margin increased to 15.0% (1999: 12.7% ) driven by
      Persimmon's commitment to improving profit per unit
*     Pre-tax profit increased by 36% to a record £48.4 million (1999: £35.7m)
*     Land bank of 34,629 plots, one of the strongest in the industry
*     Loyalty card joint-venture with Jewson announced today
      **excluding BES re-sales

Duncan Davidson, Chairman, said: 'Our strong growth in profit has been
achieved without over-dependence on the South East market.  We have maintained
our growth in profitability whilst continuing to innovate and invest for the
future.

Whilst activity in the housing market has eased in some areas, we continue to
experience good demand and visitor levels in many parts of our operation. With
the current level of forward sales, a low interest rate environment and the
availability of consented land restricted by the effects of PPG3, we believe
that a healthy housing market will be sustained ensuring another good result
for this year and beyond.'

For further information, please contact:
Duncan Davidson, Chairman                      Edward Orlebar/ Faeth Finnemore
John White, Chief Executive                    Finsbury
Persimmon plc                                  Tel: [phone]
Tel: [phone] on 29th August
Tel: [phone] thereafter


                         
       INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2000
                                 
                                 
CHAIRMAN'S STATEMENT

Persimmon has again achieved a strong record of growth in sales and profits.
This is the result of sound management and dedication to quality - not just in
design and construction but in all our activities.  During the six months to
30th June 2000 Persimmon increased its pre-tax profit by 36 per cent to a
record £48.4 million, as compared to £35.7 million in the first half of 1999.
The 37 per cent increase in earnings to 19.0p per share continues our
excellent record of earnings enhancement over the long term (1999: 13.9p).

Our legal completions in the first half were 3,483 homes, marginally above the
3,354 homes in the first half of 1999. However, our operating profit increased
by 33 per cent to £54.5 million (1999: £41.1 million), and our operating
margin to 15.0 per cent  (1999: 12.7 per cent).  This demonstrates Persimmon's
concentration upon increasing profit per unit, rather than higher volumes.

Our return on average capital employed increased to 21.5 per cent (June 1999:
17.6 per cent).  We have a strong balance sheet with gearing of 24 per cent.
In June we further strengthened our financial position with a new £150 million
revolving credit facility for five years.

Our new Divisional structure is working extremely well and places Persimmon in
a very strong position for further expansion.  Quick decision making, early
reaction to changing regional markets and a platform for future profitable
growth are all strengths of this new structure.

The Government's new planning directive, PPG3, is creating a considerable
shortage of land for development.  Persimmon's land bank of 34,629 plots puts
us in a strong position to withstand these new planning pressures.  In
addition we have increased our longer term strategic land holdings to 7,156
acres.  We therefore have one of the strongest land banks in the industry.  We
continue to be committed to a high level of brownfield development, as
exemplified by our new development of 420 units on a former oil storage depot
at Wandsworth, with a total sales revenue of £150 million.

The average selling price of our homes in the first half of 2000 increased to
£103,770 (June 1999 £94,685), and this will rise further in the current second
half.  (These figures exclude BES re-sales).  In addition, our new 'Finishing
Touches' scheme, which offers a wide range of sales extras, is further
enhancing revenue and profit per unit.  We are also offering to all future
purchasers our new  'Homeplus' card in association with Jewson, which will
generate additional profit to Persimmon over forthcoming years.

As already announced, we entered the second half of 2000 with record forward
sales.  Sales were slightly slower in July, but during August they have been
more encouraging.   Our strong growth in profit has been achieved without
overdependence on the South East market.  We have maintained our growth in
profitability whilst continuing to innovate and invest for the future.

Whilst activity in the housing market has eased in some areas, we continue to
experience good demand and visitor levels in many parts of our operation. With
the current level of forward sales, a low interest rate environment and the
availability of consented land restricted by the effects of PPG3, we believe
that a healthy housing market will be sustained ensuring another good result
for this year and beyond.

We are increasing our interim dividend by 11.4 per cent to 3.9p per share.
This dividend will be payable on 27th October 2000 to shareholders on the
Register on 15th September 2000.  As before we are offering a scrip dividend
alternative.

We have appointed Hoare Govett Limited, a member of ABN AMRO Group, as sole
financial advisers and stockbrokers to Persimmon with effect from 4th August
2000.

As always, I thank all the Persimmon team for their continuing hard work and
congratulate them on these record results.



Duncan Davidson
29th August 2000


PERSIMMON PLC
Consolidated profit & loss account (Unaudited)


____________________________________________________________________________
                              Six Months to     Six Months to       Year to
                                    30 June           30 June   31 December   
                                       2000              1999          1999   
                        Note           £000              £000          £000
____________________________________________________________________________
        
Turnover                            362,326           324,954       695,854

Cost of sales                      (291,476)         (271,635)     (577,474)
____________________________________________________________________________
Gross profit                         70,850            53,319       118,380

Net operating expenses              (16,456)          (12,193)      (26,216)

Operating profit before goodwill     54,515            41,126        92,164
amortisation

Goodwill amortisation      4           (121)                -             -

Operating profit                     54,394            41,126        92,164

Net interest payable and similar     
charges                              (5,948)           (5,443)      (10,600)
____________________________________________________________________________
Profit on ordinary activities
before taxation                      48,446            35,683        81,564

Tax on ordinary activities          (14,049)          (10,705)      (23,928)
____________________________________________________________________________

Profit on ordinary activities
after taxation                       34,397            24,978        57,636

Dividends                            (7,108)           (6,323)      (20,079)
____________________________________________________________________________

Retained profit                      27,289            18,655        37,557
____________________________________________________________________________

Basic earnings per share   5           19.0p             13.9p         32.1p

Diluted earnings per share 5           18.9p             13.9p         31.8p

Dividend per share                      3.9p              3.5p         11.1p
____________________________________________________________________________





PERSIMMON PLC
Consolidated balance sheet (Unaudited)
____________________________________________________________________________

                                    30 June           30 June   31 December   
                                       2000              1999          1999
                        Note           £000              £000          £000
____________________________________________________________________________
Fixed assets
Tangible assets                      11,495            10,866        11,105
Intangible assets          4          3,455                 -             -
____________________________________________________________________________
                                     14,950            10,866        11,105
____________________________________________________________________________


Current assets
Stocks and work in progress         683,025           628,976       584,694
Debtors                              42,959            44,738        46,584
Cash at bank and in hand             31,443             3,004        51,762
____________________________________________________________________________

                                    757,427           676,718       683,040
____________________________________________________________________________


Creditors due within one year
Borrowings                           (9,954)          (14,545)      (22,605)
Other creditors                    (209,783)         (222,152)     (164,963)
____________________________________________________________________________  
                                   (219,737)         (236,697)     (187,568)
____________________________________________________________________________
Net current assets                  537,690           440,021       495,472
____________________________________________________________________________

Total assets less current
liabilities                         552,640           450,887       506,577
____________________________________________________________________________


Creditors due after more than one year
Borrowings                         (116,105)          (68,390)     (123,998)
Other creditors                     (43,121)          (39,146)      (18,904)
____________________________________________________________________________

                                   (159,226)         (107,536)     (142,902)
____________________________________________________________________________

Net assets                          393,414           343,351       363,675
____________________________________________________________________________
Capital and reserves
Called up share capital              18,258            18,052        18,133
Share premium account               200,846           199,277       200,801
Merger reserve                        3,123             3,123         3,123
Revaluation reserve                   1,242             1,242         1,242
Profit and loss account             169,945           121,657       140,376
____________________________________________________________________________

Equity shareholders' funds          393,414           343,351       363,675
____________________________________________________________________________

Net assets per share                  215.5p            190.2p        200.6p
____________________________________________________________________________


PERSIMMON PLC
Consolidated cash flow statement (Unaudited)


____________________________________________________________________________
                              Six months to     Six months to       Year to
                                    30 June           30 June   31 December   
                                       2000              1999          1999
                        Note          £'000             £'000         £'000
____________________________________________________________________________

Net cash inflow from               
operating activities       2         46,601            36,454        56,954
____________________________________________________________________________

Return on investments
and servicing of finance
Interest received                        36                58           161
Interest paid                        (5,516)           (4,891)       (7,185)
Interest paid on finance leases        (180)             (192)         (384)
____________________________________________________________________________

                                     (5,660)           (5,025)       (7,408)
____________________________________________________________________________

Taxation
UK corporation tax (paid)/received   (7,581)            2,344       (16,744)
____________________________________________________________________________

Capital expenditure
Purchase of tangible fixed assets    (1,547)           (1,403)       (3,010)
Sale of tangible fixed assets           268               106           490
____________________________________________________________________________

                                     (1,279)           (1,297)       (2,520)
____________________________________________________________________________

Acquisitions and disposals
Acquisition of businesses 
and subsidiaries                    (19,078)           (5,479)      (12,030)
____________________________________________________________________________

Equity dividends paid               (11,796)          (10,419)      (16,621)
____________________________________________________________________________

Net cash inflow before management
of liquid resources and financing     1,207            16,578         1,631
____________________________________________________________________________

Financing
Bank loans advanced                  45,000           165,020       280,621
Repayment of bank loans             (52,893)         (176,300)     (236,300)
Exercise of share options               170             1,536         2,641
Repayment of principal under 
finance leases                       (1,152)           (1,150)       (2,218)
____________________________________________________________________________
Net cash (outflow)/inflow 
from financing                       (8,875)          (10,894)       44,744
____________________________________________________________________________

(Decrease)/increase 
in cash                    3         (7,668)            5,684        46,375
____________________________________________________________________________





PERSIMMON PLC
Notes


1.     Accounting policies

       The interim financial information has been prepared on the basis of the
       accounting policies set out in the financial statements for the year   
       ended 31 December 1999.  In addition, the group has adopted Financial  
       Reporting Standard ('FRS') 15 (Tangible Fixed Assets).  The adoption of
       this new standard has had no material impact upon this interim         
       statement.


2.     Reconciliation of operating profit to net cash inflow from operating   
       activities


____________________________________________________________________________
                              Six months to     Six months to       Year to
                                    30 June           30 June   31 December   
                                       2000              1999          1999
                                      £'000             £'000         £'000
____________________________________________________________________________


Operating profit                     54,394            41,126        92,164
Depreciation charge                   1,520             1,224         2,720
Amortisation charge                     121                 -             -
Loss/(profit) on sale of tangible 
fixed assets                             34                (6)           (3)
LTIP charge                             325               150           350
Increase in stocks and work in
progress                            (81,234)          (59,276)      (14,996)
Decrease/(increase) in debtors        7,268            (3,537)       (5,673)
Increase/(decrease) in creditors     64,173            56,773       (17,608)
____________________________________________________________________________

Net cash inflow from 
operating activities                 46,601            36,454        56,954
____________________________________________________________________________



3.     Reconciliation of net cash flow to net debt


____________________________________________________________________________
                              Six months to     Six months to       Year to
                                    30 June           30 June   31 December   
                                       2000              1999          1999
                                      £'000             £'000         £'000
____________________________________________________________________________

(Decrease)/increase in cash          (7,668)            5,684        46,375
Decrease/(increase) in debt and 
lease finance                         9,045            12,430       (42,103)
____________________________________________________________________________

Decrease in net debt from cash flows  1,377            18,114         4,272
New finance leases                     (633)             (218)         (731)
____________________________________________________________________________

Decrease in net debt                    744            17,896         3,541
Net debt at beginning of period     (99,169)         (102,710)     (102,710)
____________________________________________________________________________

Net debt at end of period           (98,425)          (84,814)      (99,169)
____________________________________________________________________________


Analysed as:
Cash at bank and in hand             31,443             3,004        51,762
Bank overdrafts                      (2,061)           (6,645)      (14,712)
Bank loans                                -           (39,940)            -
US senior loan notes               (123,998)          (36,350)     (131,891)
Finance leases                       (3,809)           (4,883)       (4,328)
____________________________________________________________________________
Net debt at end of period           (98,425)          (84,814)      (99,169)
____________________________________________________________________________


PERSIMMON PLC
Notes


4.     Acquisition

       On 22 February 2000, the group acquired the entire issued share capital
       of Tilbury Douglas Homes Limited for a cash consideration of           
       £19,503,000, including £16,076,000 in settlement of outstanding        
       balances with the former parent company, and acquisition costs. This   
       acquisition has been accounted for using the acquisition
       method of accounting.  After the alignment of accounting policies,
       the provisional fair value of assets acquired is £15,927,000,
       giving rise to goodwill of £3,576,000.  Goodwill has been
       capitalised in the consolidated balance sheet in accordance with
       FRS10 ('Goodwill and Intangible Assets') and is being amortised
       over a period of 10 years.  The amortisation charge in respect of
       the six months ended 30 June 2000 is £121,000.

5.     Earnings per share

       The calculation of earnings per share is based on earnings after
       taxation of £34,397,000 (six months to 30 June 1999: £24,978,000
       and year ended 31 December 1999: £57,636,000) and 181,304,181
       ordinary shares (30 June 1999: 179,085,267 and 31 December 1999:
       179,796,076) being the weighted average number of ordinary shares
       in issue during the period.

       Diluted earnings per share is calculated by dividing earnings
       after taxation by the weighted average number of ordinary shares
       in issue for the period, adjusted for the dilutive effect of share
       held under unexercised options.  The weighted average number of
       ordinary shares so calculated is 182,050,339 (30 June 1999:
       180,247,980 and 31 December 1999: 181,063,710).

6.     The figures for the half years to 30 June 2000 and 30 June 1999
       are unaudited. The figures included in the Profit and Loss Account
       for the year to 31 December 1999, the Balance Sheet at 31 December
       1999 and the Cash Flow Statement for the year to 31 December 1999
       are extracts from the latest published accounts which have been
       delivered to the Registrar of Companies. The report of the auditors on 
       those accounts was unqualified.

7.     The interim statement is being sent to all shareholders and is
       available upon request from the Company Secretary, Persimmon plc,
       Persimmon House, Fulford, York YO19 4FE.