REG - Persimmon Plc - Half Year Results
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RNS Number : 0621V Persimmon PLC 13 August 2025
HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025
Continued growth on a differentiated platform; on track for the full year
Persimmon Plc today announces its half year results for the six months ended
30 June 2025.
Financial highlights
H1 2025 H1 2024 Change
New home completions 4,605 4,445 +4%
New home average sales price £284,047 £263,288 +8%
New housing revenue £1.31bn £1.17bn +12%
Underlying operating profit(1) £172.0m £152.3m +13%
Underlying operating margin(1) 13.1% 13.0% +10bps
Underlying profit before tax (1) £164.9m £149.2m +11%
Underlying return on average capital employed (1) 11.2% 10.0% +120bps
Interim dividend per share 20p 20p 0%
Cash at 30 June £123.0m £350.2m £(227.2)m
Statutory measures
Total Group revenue £1.50bn £1.32bn +14%
Profit before tax £146.7m £146.3m +0%
Operational highlights
Land holdings at 30 June - plots owned and under control 82,504 81,545 +1%
Number of sales outlets at 30 June 277 266 +4%
Current private forward sales position(2) £1.25bn £1.12bn +11%
· 7% increase in private completions to 3,987 homes; total completions up 4% to
4,605; on track for completions of 11,000-11,500 homes for the full year.
· 13% increase in underlying operating profit(1), driven by increased volume and
on-going operational discipline; full year guidance unchanged.
· Net private sales rate excluding bulk in the period up 5% at 0.62 (2024:
0.59). Total net private sales rate of 0.70 per outlet per week (2024: 0.71),
representing 191 sales per week up 3% compared to H1 2024.
· Private average sales price on completions up 7% reflecting a higher
proportion of Charles Church and robust pricing.
· Launched New Build Boost; first to market on shared equity offering.
· Maintained five-star customer satisfaction for fourth successive year and our
best ever Trustpilot score, rated 'Excellent', alongside further improvements
to build quality.
· 5,066 plots achieved detailed planning in the period, equivalent to 110% of
completions, continuing to benefit from our enhanced planning approach.
· Further 4% growth in outlets to 277 at 30 June as we progress towards our
target of at least 300 outlets.
· Continuing to invest in future growth, with £210m spend on land in H1 at
excellent margins; strong strategic land pipeline.
· Good building safety progress: all buildings assessed and works started or
completed on over 80%(3) (ahead of industry at 48%(3)). Plan to be on site at
all known developments by year end.
Current trading and outlook
In the five weeks since 30 June 2025, net private sales rates excluding bulk
have been 0.61, compared to 0.55 for the same period last year (including bulk
2025: 0.68; 2024: 0.69). Given our progress in opening new outlets this
equates to weekly sales of 188 compared to 183 in the same period last year.
Our current private forward order book(2) is up 11% at £1.25bn at a private
average sales price of c.£292,800, up 1.3% on the prior year. Including
Partnerships, our total current forward order book(2) is up 9% at £1.86bn. We
are now c.80% secured on private completions and fully secured on Partnerships
completions for the full year(4), positioning us well as we enter the second
half of the year. Overall, while we are mindful of geopolitical events and
challenging market conditions, including uncertainty in advance of the Budget,
we continue to expect to deliver between 11,000 and 11,500 completions for the
full year with a housing operating margin of between 14.2% and 14.5%, enabling
us to deliver strong underlying profit growth over two years.
Our sustained activity in the land market, combined with our on-going planning
success, have further strengthened our land bank and grown our sales outlets.
Given our investment and improvement in our key capabilities, we currently
expect volume to grow to c.12,000 units in 2026 with operating margin
progression similar to 2025 positioning us well for another year of good
profit growth. As we look ahead, the pace of margin progression will be
impacted by diminishing embedded build cost inflation, on-going affordability
constraints and increased industry-wide costs. However, with a stable housing
market, we remain confident of further growth in outlets, volume and profit.
Dean Finch, Group Chief Executive, said:
"I am pleased that we have continued to grow in the first half of the year
despite challenging market conditions and with affordability still an
important constraint. Our average sales price, sales, completions, planning
approvals, active sites and forward order book are all up, many against
industry trends, showing that our strategy including a focus on self-help has
continued to deliver. An improvement in operating profit and return on capital
demonstrate the benefit of our on-going operational discipline.
"We continue to invest in our key capabilities to further strengthen this
growing platform. Disciplined investment in land is being complemented by
planning success to secure additional site openings. Our vertical integration
strengths have been further enhanced, with more efficiency benefits to come.
Our three-brand strategy is helping to increase sales, with investment in
marketing seeking to drive further growth.
"We are on course to deliver our previously guided range of 11,000-11,500
completions this year. While mindful of macroeconomic volatility we remain
focused on driving further improvements to secure the medium-term growth
ambitions we set out in March.
"Given our strong progress with building safety remediation, we anticipate
being able to review our capital allocation policy when the programme of works
is substantially complete."
Footnotes
1 Stated before net exceptional charge of £16.2m (2024: £2.0m), as
set out in note 4, and goodwill impairment (2025: £2.0m, 2024: £0.9m).
Margin based on new housing revenue (2025: £1.31bn, 2024: £1.17bn).
2 2025 figure as at 3 August 2025; 2024 figure as at 4 August 2024.
3 Persimmon figure based on all buildings across Great Britain;
Industry figure based on MHCLG data for England in June 2025 published on 17
July 2025.
4 Relative to company compiled consensus for 2025 as at 6 August
2025 (Total volume 11,332 homes, underlying operating profit of £446m).
For further information please contact:
Victoria Prior, Group IR Director Giles Kernick, Teneo
Anthony Vigor, Group Director of Strategic Partnerships and External Affairs Elizabeth Snow, Teneo
Persimmon Plc persimmon@teneo.com
Tel: +44 (0) 1904 642199 Tel: +44 (0) 7912 540 246
There will be an analyst and investor presentation at 09.00 today, hosted by
Dean Finch, Group Chief Executive and Andrew Duxbury, Chief Financial Officer.
Analysts unable to attend in person may listen live via webcast using the link
below. All participants must pre-register to join the webcast. Once
registered, an email will be sent with important details for this event, as
well as a unique Registrant ID. This ID is to be kept confidential and not
shared with other participants.
Live webcast: https://edge.media-server.com/mmc/p/tes8na9j/
(https://edge.media-server.com/mmc/p/tes8na9j/)
An archived webcast of today's analyst presentation will be available from
this afternoon on www.persimmonhomes.com/corporate
(http://www.persimmonhomes.com/corporate) .
Our next scheduled update is on 13 November 2025.
CHIEF EXECUTIVE'S REVIEW
Strengthened platform; positioned for growth
Overview
Persimmon's strategy is delivering. Our efforts in recent years have been
focused on areas within our control - strengthening our land bank, improving
our planning approach, increasing use of our unique vertical integration and
investment in sales - all while maintaining a strong balance sheet and our
commercial discipline, building a strong and sustainable platform for the
future.
In the first six months of the year, this enabled us to grow our outlet base
to 277 sales outlets (up 4% on June 2024), deliver a 7% increase in private
completions (4% growth in total completions), and grow underlying operating
profit(1) by 13%.
Our marketing campaigns are generating increased traffic to sites and online,
and we have taken proactive steps to address affordability challenges
including taking reservations through our "New Build Boost" product. In
addition, our relaunched Charles Church offering is performing well and we
have a strong pipeline of new outlets. Overall, the net private sales rate per
outlet per week excluding bulk was up 5% to 0.62 in the first half (2024:
0.59).
Our sustained improvement in customer service continues, with our 5-star
homebuilder status retained for a fourth consecutive year and both Charles
Church and Persimmon Homes operating at 'Excellent' with 4.6 stars on
Trustpilot.
We have also continued to invest in innovation and vertical integration in the
first half of the year, with our new automated production line at our existing
Space4 factory now operational and further enhancements planned for the second
half of the year. A live trial of the Mauer facade with our Space4 timber
frame is due to commence later this month for one of our Build to Rent ('BTR')
partners.
We are well placed to capture further opportunities. Persimmon benefits from a
strong balance sheet and a secure and growing pipeline of outlets,
complemented by the strength of our longer-term strategic land holdings.
Overall, while we are mindful of macroeconomic volatility, we have made good
progress in the first half and the business is positioned for further growth.
We remain on track to deliver 11,000-11,500 completions for the full year with
a housing operating margin of 14.2%-14.5%, in line with previous guidance. As
outlined in March, our ambition remains to achieve a 20% housing operating
margin and 20% ROCE over the medium-term.
Trading performance
We delivered 4,605 completions in the first half of the year, a 4% increase on
the same period last year (2024: 4,445) driven by strong growth in private
completions, up 7%. The Group's average sales price on completions rose 8% to
£284,047 (2024: £263,288) driven by a greater proportion of private home
completions and robust private average sales prices in the period.
This performance is particularly pleasing given the challenging market
environment that we are operating in. There have been some positive
developments in the first half of the year, with targeted relaxation of some
lending rules and real term pay rises helping to improve affordability for
some. Nonetheless, this has been balanced with the impact of council tax,
national insurance, stamp duty and energy bill increases in April, alongside
macroeconomic uncertainty weighing on consumer sentiment. While interest and
mortgage rates have reduced, they are at levels that still present a barrier
to many potential customers. Our homes are well placed in the market, with
prices significantly below our largest competitors, and we have sought to make
them more accessible to more customers by improving the range of affordable
routes to homeownership.
Throughout the first half, our marketing campaigns continued to generate
healthy traffic to sites and online, with website visitors up c.20% and
enquiries up c.13% in the period. To meet the diverse needs of our customers,
we offer a wide range of incentives, including our innovative 'Flexi Boost'
concept and the recently introduced New Build Boost product in partnership
with Generation Home. This shared equity product is supporting customers with
affordability constraints, reflecting our on-going commitment to innovative,
customer-focused solutions.
Our efforts translated into a 5% increase in the net private sales rate per
outlet excluding bulk to 0.62 for the first half (2024: 0.59). Including bulk
sales, the total net private sales rate was 0.70 per outlet per week (2024:
0.71) in the period, equivalent to 191 sales per week up 3% compared to H1
2024 (186 per week). Private average sales prices on reservations taken in the
six-month period were up 5% with incentives controlled at c.4.5% on gross
reservations (2024: c.4.5%). Pricing dynamics remain more favourable in the
North and Scotland, with affordability challenges persisting particularly in
the South where price growth has been more modest.
Given the challenging market backdrop and continued but diminishing embedded
cost headwinds, we are delighted to have achieved 13% growth in underlying
operating profit(1) in the period, supported by our vertical integration and
operational efficiencies. These unique capabilities have helped underpin our
performance and will help drive further growth. We continue to anticipate that
build cost inflation will be in the low single digits this year, as we have
been able to leverage our position as a growing business in a subdued market
to secure preferential commercial terms.
High quality land bank and growing outlets
Our progress in the land market continues to highlight the strength of our
disciplined investment approach, with a spend of £210m during the period, up
from £195m in the same period last year. We have successfully added 5,729 new
plots to our owned and under control land holdings, achieving a replacement
rate of 124% and maintaining excellent embedded margins within our land bank.
Combined with our success in planning this is providing us with the platform
for further growth into the medium term.
While we are yet to see material benefits from the government's planning
reform, we remain encouraged that they will start to benefit planning
approvals in time. We have continued to focus on actions we can take in the
meantime and continue to find innovative solutions to planning blockages. A
recent instance is at the Lakenheath site in Suffolk, where a 2.3 hectare
habitat will be developed to support the local stone curlew population and
other priority species, facilitating planning approval for 139 zero-carbon
ready homes.
In total, we secured detailed or reserved matters planning for 5,066 plots in
the period, including c.2,000 plots that originated from our strategic land
holdings. Over the last rolling 12 months we have achieved 23% more detailed
or reserved matters planning approvals than in the previous 12 months, ahead
of industry trends. We continue to see further opportunities for near-term
conversion from our strategic land bank and have now identified 50 sites where
we believe there is potential to accelerate delivery, 31 of which are
currently proceeding towards a planning application.
During the period we also achieved outline planning approval on our 1,000+
homes strategic land site at Elms Park in Cheltenham, which we purchased in
October last year. This is an excellent site for us, with strong sales rates
on our neighbouring site and the potential for all three brands to be used to
deliver net zero carbon ready homes.
Our sustained, disciplined investment in land coupled with our planning
approvals success is positioning the business for future growth. We opened 55
new outlets (2024: 44 outlets) and ended the period with 277 outlets, a 4%
increase from the previous year (2024: 266 outlets), as the wider sector has
reduced outlet numbers. With a strong pipeline and plans to open around 45
more outlets in the second half of 2025, we are on track to achieve our goal
of at least 300 outlets, positioning us for continued success and growth.
Three strong brands providing diversification
We have three strong brands across the business in Persimmon Homes, Charles
Church and Westbury Partnerships, each serving a different segment of the
market and providing a diversified pool of customers to sell our homes to.
Our core Persimmon brand remains attractive to a wide range of customers. Our
disciplined approach means we consistently offer homes at prices significantly
below our largest competitors, with a focus on quality and accessible
homeownership. This positions us as a compelling alternative to second-hand
properties, particularly given our smaller, more efficient house types and
innovative purchasing options. By leveraging our unique vertical integration
and careful material choices, we have supported margins while delivering value
and affordability for a broad range of customers. These foundations underpin
the continued appeal of our developments and aid growth. Private completions
under the Persimmon brand were up 5% in the period benefiting from our
enhanced marketing initiatives and the success of our growing network of
outlets.
Charles Church, our premium offering, has gained significant momentum,
especially following the brand's relaunch at Harlestone Grange in March. In
the first half of this year, Charles Church private completions increased by
20%. Recognising the brand's appeal, we are actively pursuing opportunities
for both standalone and dual-branded sites and expanding into new regions. As
of 30 June, we had 53 Charles Church sites, 35 of which were dual branded. Our
ambition remains to double the number of completions delivered under our
higher margin Charles Church brand over the medium-term.
The reputation we have built by consistently improving our product range,
build quality, and customer service continues to open doors to new
partnerships and opportunities including through our Westbury brand. While
completions to housing associations were, as anticipated, lower in the first
half of the year at 618 homes (2024: 703), this largely reflects timing, with
delivery of homes in this segment accelerated in previous years. We expect
full year housing association completions to be ahead of 2024 and are fully
secured.
The government's recent affordable housing funding announcements provide some
longer-term certainty to the market. The Spending Review's allocation of
£39bn to the Affordable Homes Programme ('AHP') and confirmation of a CPI+1%
rent settlement, both over 10 years, have been welcomed by the sector. We will
assess their full benefit when more detail becomes available. The precise
funding available for the next AHP beginning in April 2026 is still yet to be
announced, including how it will support the government's commitment for 60%
of all new homes funded through the programme to be Social Rent. With
significant financial pressures on-going for many Registered Providers, it
will be important to closely monitor how the rent settlement and other related
announcements improve their appetite for s106 properties in the coming years.
The institutional investor and BTR markets present a good opportunity for
long-term, capital-efficient sales and we delivered 590 homes in the first
half for our partners (2024: 524). Savills research recently showed that BTR
made up 8% of all new build sales in England and Wales last year. Our improved
reputation in this market has allowed us to expand our collaborations to
include 14 new partners this year. These strategic partnerships not only
diversify our revenue streams but also accelerate delivery and enhance our
capital returns.
Through the combination of these three strong brands, customer segments, and
market channels, we have built a robust, adaptable business to support our
medium-term growth.
Build quality and customer service
Persimmon's focus on consistent delivery of high-quality homes through Build
Right, First Time, Every Time in recent years has been crucial for both
customer service and cost-efficiency. Continued investment in digitalisation
of on-site build processes is helping drive further improvement in build
quality and efficiency, health and safety management and engagement with our
customers.
We are delighted to have maintained our 5-star HBF rating, awarded to us for
the fourth year running in March. This demonstrates the embedded culture of
consistently delivering high-quality homes. For the new survey year, our HBF
8-week customer satisfaction score(2) is currently 93.8%, reflecting our
on-going focus on the quality of our customers' experience. This is further
reflected in our Trustpilot scores which are our highest ever, with both
Persimmon Homes and Charles Church rated 'Excellent' at 4.6 stars (December
2024: Persimmon 4.5 star; Charles Church 4.4 star).
The investment into our sales and marketing teams is showing tangible
benefits, with mystery shopping scores improving 7% compared with the second
half of 2024. Since December 2022, customer consideration is now up 26% with
trust in the Persimmon brand up 17%.
We also saw further improvements on build quality during the period with our
Construction Quality Review scores(4) up 4% and Reportable Items(3) maintained
at 0.23 (2024: 0.23).
Innovation & vertical integration
Our vertical integration capabilities have been a core strength that we are
enhancing and we believe that expanded off-site manufacture will be essential
in delivering our growth ambitions. We have invested in our existing factories
to expand the use of their cost-effective products across the business and
will expand their use further, securing and sustaining cost advantages in the
coming years. We are complementing this investment with a digitalised
operational system that provides greater control of build programme, costs and
contractor management.
The investment in Brickworks, Tileworks and Space4 has enhanced the range and
quality of the cost-effective, high-quality materials they supply to the
business. The typical per plot cost saving if our own bricks, tiles and timber
frame products are used is up to £5,500. By investing in these products, we
are enhancing security of supply and improving build and cost efficiency.
Our new generation brick has proved popular, including amongst a growing
number of local authorities, with a third shift now added at the Brickworks
factory to meet the increased demand. In the first half of the year, we
delivered 27.4m bricks to site, up 25% on last year. With the factory now
operating 24 hours a day, 7 days a week, we will be expanding its capacity
next year with an additional production line to be added.
Our own tile is now the first option for every region, except where local
planning rules require an alternative product. Demand has again grown this
year, with 5.7m tiles delivered to site, up 62% on last year. If current
growth projections are met, we anticipate adding a third shift next year,
further enhancing cost efficiency.
In the first half of the year, we installed a new state-of-the-art automated
timber frame line at our Birmingham Space4 factory. We believe this is the
most advanced timber frame line in the country, enhancing both operational
efficiency and the consistency of frame quality. An automated roof truss line
will open later this year, expanding the range of products Space4 offers.
This investment reflects the significant growth in demand for the product. In
the first half of the year Space4 provided 1,703 timber frame products as well
as 457 roof cassettes. Further expanding timber frame use is a priority, with
seven new regions set to start using the product within the next six months.
Anticipating this additional demand, we are due to start work on our second
Space4 factory in Loughborough before the end of the year. This new factory -
again using the latest state-of-the-art automated technology - will increase
overall capacity and expand the range of products produced.
We will shortly start an on-site trial combining our timber frame with the
Mauer brick facade product for one of our BTR customers. The combination of
timber frames produced in our new factory and the Mauer facade provides the
opportunity for a significant step-up in housing output, while securing
additional savings through lower off-site manufacturing costs and even faster
build times.
Another area of innovation has been significant investment in new digital
operational management tools. These are already strengthening operational
controls and driving new cost efficiencies, with new opportunities constantly
sought. On-site digitalisation of material management, quality assurance and
the real time monitoring of trade and labour levels is providing a granular
level of control that benefits cost efficiency and operational planning.
Management teams now have real time tracking of trade activity on site to
assure themselves they have the necessary labour to deliver their programme.
This data also allows us to plan future build programmes using clear evidence,
enhancing build efficiency and providing delivery assurance.
These enhanced on-site digital tools are also allowing greater cost controls,
such as with dayworks. As well as enhancing the monitoring of costs, it is
enabling our new Chief Commercial Officer to interrogate comparative spending
across the Group and identify best practice and cost savings opportunities.
With more granular and comprehensive cost comparison data, we believe there is
real opportunity to drive significant operational efficiencies.
Current trading and outlook
In the five weeks since 30 June 2025, net private sales rates excluding bulk
have been 0.61, compared to 0.55 for the same period last year (including bulk
2025: 0.68; 2024: 0.69). Given our progress in opening new outlets this
equates to weekly sales of 188 compared to 183 in the same period last year.
Our current private forward order book(5) is up 11% at £1.25bn at a private
average sales price of c.£292,800, up 1.3% on the prior year. Including
Partnerships, our total current forward order book(5) is up 9% at £1.86bn. We
are now c.80% secured on private completions and fully secured on partnerships
completions for the full year(6), positioning us well as we enter the second
half of the year. Overall, while we are mindful of geopolitical events and
challenging market conditions, including uncertainty in advance of the Budget,
we continue to expect to deliver between 11,000 and 11,500 completions for the
full year with a housing operating margin of between 14.2% and 14.5%, enabling
us to deliver strong underlying profit growth over two years.
Our sustained activity in the land market, combined with our on-going planning
success, have further strengthened our land bank and grown our sales outlets.
Given our investment and improvement in our key capabilities, we currently
expect volume to grow to c.12,000 units in 2026 with operating margin
progression similar to 2025 positioning us well for another year of good
profit growth. As we look ahead, the pace of margin progression will be
impacted by diminishing embedded build cost inflation, on-going affordability
constraints and increased industry-wide costs. However, with a stable housing
market, we remain confident of further growth in outlets, volume and profit.
Dean Finch
Group Chief Executive
12 August 2025
Footnotes
1. Stated before net exceptional charge of £16.2m (2024: £2.0m), as
set out in note 4, and goodwill impairment (2025: £2.0m, 2024: £0.9m) and
margin based on new housing revenue (2025: £1.31bn, 2024: £1.17bn).
2. 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.
3. A Reportable Item is an area of non-compliance with NHBC standards.
The item is rectified fully before completion of the home.
4. NHBC independent site-based review of quality of construction.
5. 2025 figure as at 3 August 2025; 2024 figure as at 4 August 2024.
6. Relative to company compiled consensus for 2025 as at 6 August 2025
(Total volume 11,332 homes, underlying operating profit of £446m).
FINANCIAL REVIEW
Trading
The Group generated total revenue¹ of £1.50bn (2024: £1.32bn), with new
housing revenue of £1.31bn (2024: £1.17bn).
The Group delivered 4,605 new homes (2024: 4,445) at an average sales price of
£284,047 (2024: £263,288) which is 8% higher year on year, reflecting robust
pricing and a greater proportion of private homes than the prior period.
The Group delivered 3,987 new homes to its private customers, up 7% (2024:
3,742) at an average sales price of £302,476 (2024: £281,859), up 7% as a
result of a greater proportion of Charles Church completions and robust
pricing. Affordability continues to be a challenge for customers, particularly
first-time buyers which represented 34% of private completions in the first
half (2024: 31%), and our new shared equity product is helping address this.
We continue to engage with our institutional investors and BTR partners, and
these represented 590 homes of our private delivery in the first half (2024:
524).
The Group delivered 618 homes for our housing association partners
(2024: 703), at an average sales price of £165,154 (2024: £164,432). The
reduction in housing association homes compared to the prior year largely
reflects timing, with delivery of homes in this segment accelerated in
previous years. We are fully secured for our expected housing association
delivery for the full year.
The Group's underlying housing gross margin² remained flat in the period at
20.1% (2024: 20.1%), with the impact of residual embedded build cost inflation
continuing to be a feature in the period, as expected.
The Group's underlying gross profit(3) for the period of £262.4m (2024:
£235.4m) continues to be supported by the Group's well-established land
replacement strategy, with land cost recoveries(4) of 11.9% of new housing
revenue for the period (2024: 12.1%). The Group's reported gross profit for
the period is £262.4m (2024: £258.4m, stated after an exceptional release of
£23.0m).
Underlying operating profit(5) for the Group increased 13% on the prior year
to £172.0m (2024: £152.3m), driven by higher gross profit. As expected, we
saw a small improvement in the underlying housing operating margin(6) to 13.1%
(2024: 13.0%). The pace of future margin progression will be impacted by
remaining embedded inflation, affecting most of our delivery in 2026. It is
also impacted by on-going affordability constraints, our increased exposure to
the BTR market and the increased cost of opening new outlets and regulation.
On a reported basis, operating profit increased by 3% to £153.8m (2024:
£149.4m) and is stated after an exceptional charge of £16.2m (2024: charge
of £2.0m) relating to costs associated with the Competition and Markets
Authority investigation and proposed settlement as announced on 9 July and
goodwill impairment of £2.0m (2024: £0.9m). Further detail is provided in
note 4 to the financial information.
Net finance costs increased in the period to £7.1m (2024: £3.1m) being a
result of lower average cash balances, increased utilisation of our £700m
Revolving Credit Facility ('RCF'), £4.5m of imputed interest payable on land
creditors (2024: £1.5m) and £3.0m of imputed interest payable on the legacy
buildings provision (2024: £3.0m).
The Group generated an underlying profit before tax(5) of £164.9m (2024:
£149.2m), up 11%, and a reported profit before tax of £146.7m (2024:
£146.3m).
Underlying basic earnings per share(5) was 36.8p, a 3% increase compared to
the prior period (2024: 35.7p) reflecting a normalised tax charge in 2025.
Reported basic earnings per share was 31.2p, 10% lower than the prior period
last year (2024: 34.7p) including the effect of the exceptional cost related
to the CMA investigation.
Underlying return on average capital employed(7) as at 30 June 2025 was 11.2%
(2024: 10.0%), demonstrating the resilience of the business and the continued
investment made to support future growth. ROCE excluding land creditors was
12.5%(7) (2024: 11.1%). On a statutory basis, ROCE including land creditors
was 9.9%(7) (2024: 9.9%).
FibreNest
On 14 May, we announced the proposed sale of FibreNest, our non-core full
fibre broadband service, to BUUK Infrastructure, which provides full-fibre and
multi-utility services to new build housing developments and will provide
improved choice for our customers.
The discounted total enterprise value for the sale is c. £100m, with £70m
received upon completion and further payments contingent on business
performance over the coming years. The Board intends to use the proceeds from
the sale of this non-core asset to invest further in its growth strategy as
set out in March 2025. The sale will also remove the need for the on-going
investment that FibreNest would have required in the coming years, providing
additional capital for Persimmon to allocate to deliver its medium-term growth
ambitions.
The sale completed on 5 August 2025, with a profit on disposal to be
recognised as an exceptional item in the second half year.
Building safety
During the period, we continued our proactive approach of working with
management companies, factors (in Scotland) and their agents to carry out
necessary remediation as soon as possible. The table below sets out our
detailed position at 30 June 2025, compared to 31 December 2024.
We have assessed all relevant developments. As the table below demonstrates,
developments are actively progressing through the programme. Of the total of
83 developments in our programme 41 (49%) have already seen any necessary
works completed. Of the remaining 42, 23 currently have work on site and 19
are at varying stages of pre-tender, live tender, contract negotiation or
agreed contract and works commencing soon. This means that 77% of developments
have either had works started or completed equivalent to over 80% of the total
number of buildings.
Identified developments As at 30 June 2025 As at 31 December 2024
Recently made aware and under investigation 0 1
Pre-tender preparation on-going 5 9
Live tender process 3 -
Sub-total: progressing through tender 8 10
Progressing to contract 7 8
Contracted but works yet to start 4 4
Sub-total: pre-works starting 19 22
Currently on site 23 21
Sub-total: to complete 42 43
Completed developments 41 40
Total identified developments 83 83
Cash expenditure in the period* £31m £58m
Provision at period end £208m £235m
*Spend for 6 months to June 2025, 12 months to December 2024
In the period we spent £30.7m on the programme (2024: £24.7m), with total
expenditure now over £150m. Given our own proactive approach and the
sustained and significant publicity around cladding and building safety, we do
not anticipate significant new building additions into the programme. We
believe our existing provision remains sufficient, although we note some
inflationary pressures in this part of the supply chain, as well as potential
for increased scope of works and that we still have 19 developments to start.
Importantly, we remain on track to conclude the majority of our works in the
next two years. We are actively pursuing claims against relevant third parties
to recover costs associated with building safety, although no estimate has
been made in our existing provision.
Competition and Markets Authority
As announced on 9 July 2025, the Competition and Markets Authority ('CMA')
announced its intention to close its investigation into Persimmon, along with
six other UK housebuilders, 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 will make an ex-gratia financial contribution of £15.2m to the
Government's Affordable Homes Programme. This has been accounted for in the
period as an exceptional cost.
Balance sheet
Total equity decreased to £3,485m from £3,507m at 31 December 2024,
including recognising the liability associated with the payment of the final
dividend for 2024, paid in July. Retained earnings decreased to £2.91bn,
(December 2024: £2.94bn). Reported net assets per share of 1,088p represents
a small decrease from 1,096p at 31 December 2024.
Land holdings
Persimmon's disciplined and expert land buying is a core strength of the
business. We maintained our selective land purchase strategy in the first
half, positioning us well for the future as we look to grow our outlet
position. As at 30 June 2025, we had 277 sales outlets, up from 270 outlets at
the start of the year. We remain on track to open around 45 gross new outlets
in the second half as we position the business for growth over the medium
term.
At 30 June 2025, the carrying value of the Group's land assets had increased
by 1% to £2,289m (December 2024: £2,266m), reflecting continued investment
in the Group's future and our on-going success at achieving implementable
planning permissions. The Group's land cost recoveries for the period of
11.9%(4) of new housing revenue is 20bps lower than the prior year, reflecting
the mix of completions in the period, and remains an excellent position.
Overall, land spend in the period was £209.6m, (2024: £194.5m) of which
£100.5m related to the settlement of land creditors (2024: £113.3m). In
total, we brought 5,729 plots across 24 sites into our owned and under control
land holdings in the period (2024: 4,625 plots) with 787 of these plots
converted from our strategic land portfolio and sites balanced across the
country.
At the end of June, the Group had owned and under control land holdings of
82,504 plots (December 2024: 82,084) representing 7.7 years of forward supply
at 2024 volumes. Owned plots totalled 67,636 (December 2024: 69,189), with an
overall pro-forma site gross margin(8) of c.29% (December 2024: c.29%) and a
land cost to revenue ratio of 12.0%(9) (December 2024: 11.9%) which provides
good confidence for future margin progression. Of these, 40,566 have a
detailed implementable planning consent, providing excellent visibility.
In addition to its owned plots, the Group controls 14,868 plots (December
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.
In the first half, the Group acquired interests in a further c.6,200 potential
plots of strategic land opportunities resulting in a total of c.75,000 plots
at 30 June 2025 (December 2024: c.70,000 plots). This will provide a long-term
supply of forward plots for future development by the Group.
Our strategy of continuing to be active in the land market over the past few
years is allowing us to grow our outlet base in the short to medium-term, a
key differentiator for our business.
Work in progress
At 30 June 2025, the Group had work in progress of c.4,870 equivalent units of
new home construction, an increase on the position at the start of the year
(December 2024: c.3,680, June 2024: c.4,440) reflecting normal seasonality
with a stronger delivery expected in the second half of the year. Our
disciplined work in progress investment aligns build levels with customer
demand and on average, overall weekly build rates tracked 22% higher in the
period, with 228 equivalent units of build per week compared to 187 per week
in the first half of 2024. Our in-house production of essential materials,
including bricks, roof tiles and timber frame kits is a key strength of the
business and we are further increasing capacity at each of our factories to
support our future growth ambitions.
Our work in progress investment of £1.69bn at 30 June 2025 increased £268.4m
compared to 31 December 2024 (£1.43bn).
As at 30 June 2025, we owned 757 part exchange properties (December 2024: 739
properties) at a carrying value of £163.8m (December 2024: £154.4m), of
which most had already been reserved for onward sale. 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 period, we continued our targeted investment into the business to
enhance quality, efficiency and returns in line with our strategic objectives.
As the Group invests in further growth, our long-standing financial discipline
will continue in all land appraisals and decisions to open outlets. The Group
will continue to maintain a robust balance sheet, with low leverage.
The Group had a cash balance of £123.0m at 30 June 2025 (December 2024:
£258.6m) with land creditors of £401.1m (December 2024: £423.2m), of which
c.£140m is expected to be paid by the end of this year.
The Group generated £182.9m of cash from operating activities in the period
(2024: £164.7m), before investing £243.1m in working capital (being
principally £268.4m in net work in progress, a £30.7m utilisation of the
legacy buildings provision and a net £26.6m reduction in land creditors).
This investment in work in progress along with the Group's healthy liquidity
will provide further opportunities to continue to support the future growth of
the business.
The Group's shared equity loans have generated £1.9m of cash in the period
(2024: £1.9m). The carrying value of these outstanding shared equity loans,
reported as 'shared equity loan receivables', is £27.2m at 30 June
(December 2024: £29.0m).
The Group's defined benefit net pension asset has increased to £133.5m at 30
June 2025 (December 2024: £130.7m).
The Group has a robust balance sheet with high quality land holdings, strong
levels of work in progress investment and healthy levels of liquidity. We
continue to exert disciplined control over work in progress while investing to
strengthen our platform for future growth. We currently anticipate net cash at
year end will be between £nil and £200m, in line with previous guidance.
Capital Allocation
The Group's capital allocation policy is to deliver sustainable returns to
shareholders, investing in future growth through disciplined expansion of our
land portfolio while maintaining a strong balance sheet.
On 11 July 2025, 40p per share (or £128.1m) of capital was returned to
shareholders as a final cash dividend in respect of the financial year 2024
which was approved by shareholders at the AGM on 1 May 2025.
The Board has declared an interim dividend of 20p per share, which will be
payable on 7 November 2025, to shareholders on the register on 17 October
2025. The Board's intention is, as a minimum, to maintain the 2024 dividend of
60p per share, with a view to growing this over time.
Andrew Duxbury
Chief Financial Officer
12 August 2025
Footnotes
1. The Group's total revenues include the fair value of consideration
received or receivable on the sale of part exchange properties 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. Stated before an exceptional release of £nil (2024: £23.0m), as
set out in note 4 and based on new housing revenue (2025: £1.31bn, 2024:
£1.17bn).
3. Stated before an exceptional release of £nil (2024: £23.0m), as
set out in note 4.
4. Land cost value for the plot divided by the revenue of the new home
sold.
5. Stated before net exceptional charge of £16.2m (2024: £2.0m), as
set out in note 4, and goodwill impairment (2025: £2.0m, 2024: £0.9m).
6. Stated before net exceptional charge of £16.2m (2024: £2.0m), as
set out in note 4, and goodwill impairment (2025: £2.0m, 2024: £0.9m) and
based on new housing revenue (2025: £1.31bn, 2024: £1.17bn).
7. 12 month rolling average calculated on underlying operating profit
and total capital employed. Underlying operating profit is stated before net
exceptional charge of £48.6m (2024: £2.0m), as set out in note 4, and
goodwill impairment (2025: £2.7m, 2024: £2.7m).
8. Estimated weighted average gross margin based on assumed revenues
and costs at 30 June 2025 and normalised output levels.
9. Land cost value for the plot divided by the anticipated future
revenue of the new home sold.
Appendices
Forward sales position - As at 30 June
30 June 2025 30 June 2024 Variance
Forward sales Value Homes Value Homes Value Homes
Private £973m 3,338 £863m 2,971 +13% +12%
Housing Association £582m 3,667 £555m 3,477 +5% +5%
Total £1,555m 7,005 £1,418m 6,448 +10% +9%
Forward sales position - Current
3 August 2025 4 August 2024 Variance
Forward sales Value Homes Value Homes Value Homes
Private £1,252m 4,276 £1,124m 3,887 +11% +10%
Housing Association £612m 3,822 £588m 3,641 +4% +5%
Total £1,864m 8,098 £1,712m 7,528 +9% +8%
PERSIMMON PLC
Condensed Consolidated Statement of Comprehensive Income
For the six months to 30 June 2025 (unaudited)
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
Note £m £m £m
Total revenue 3 1,502.8 1,316.5 3,200.7
Cost of sales (1,240.4) (1,058.1) (2,620.3)
Gross profit 262.4 258.4 580.4
Analysed as:
Underlying gross profit 262.4 235.4 582.4
Exceptional items 4 - 23.0 (2.0)
Other operating income 6.1 5.6 9.8
Operating expenses (114.7) (89.6) (196.0)
Exceptional items - Impairment of a financial asset 4 - (25.0) (25.0)
Profit from operations 153.8 149.4 369.2
Analysed as:
Underlying operating profit 172.0 152.3 405.2
Exceptional items 4 (16.2) (2.0) (34.4)
Impairment of intangible assets (2.0) (0.9) (1.6)
Finance income 6.2 5.6 11.1
Finance costs (13.3) (8.7) (21.2)
Profit before tax 146.7 146.3 359.1
Analysed as:
Underlying profit before tax 164.9 149.2 395.1
Exceptional items 4 (16.2) (2.0) (34.4)
Impairment of intangible assets (2.0) (0.9) (1.6)
Tax 5 (46.7) (35.6) (92.0)
Profit after tax (all attributable to equity holders of the parent) 100.0 110.7 267.1
Other comprehensive expense
Items that will not be reclassified to profit:
Re-measurement losses on defined benefit pension schemes 14 (0.5) (0.3) (1.5)
Tax 5 0.1 - 0.4
Other comprehensive expense for the period, net of tax (0.4) (0.3) (1.1)
Total recognised income for the period 99.6 110.4 266.0
Earnings per share
Basic 6 31.2p 34.7p 83.6p
Diluted 6 30.9p 34.3p 82.7p
PERSIMMON PLC
Condensed Consolidated Balance Sheet
As at 30 June 2025 (unaudited)
30 June 2025 30 June 2024 31 December 2024
Note £m £m £m
Assets
Non-current assets
Intangible assets 163.8 164.5 164.6
Property, plant and equipment 111.6 145.7 154.6
Investments accounted for using the equity method 0.3 0.3 0.3
Shared equity loan receivables 9 24.6 26.4 25.7
Trade and other receivables 0.4 - -
Deferred tax assets - 12.2 9.2
Retirement benefit assets 14 133.5 129.2 130.7
434.2 478.3 485.1
Current assets
Inventories 8 4,210.6 3,795.4 3,902.8
Shared equity loan receivables 9 2.6 4.3 3.3
Trade and other receivables 142.7 159.9 167.8
Current tax assets 13.6 9.9 15.8
Cash and cash equivalents 13 123.0 350.2 258.6
Assets held for sale 10 65.1 - -
4,557.6 4,319.7 4,348.3
Total assets 4,991.8 4,798.0 4,833.4
Liabilities
Non-current liabilities
Trade and other payables (171.5) (151.8) (196.2)
Deferred tax liabilities (56.7) (66.6) (73.1)
Partnership liability (5.1) (9.9) (10.3)
Legacy buildings provision 11 (92.9) (104.8) (123.9)
(326.2) (333.1) (403.5)
Current liabilities
Trade and other payables (917.9) (789.5) (806.3)
Partnership liability (11.3) (5.6) (5.6)
Dividend liability 7 (128.1) (127.9) -
Legacy buildings provision 11 (114.7) (133.7) (111.4)
Liabilities held for sale 10 (8.6) - -
(1,180.6) (1,056.7) (923.3)
Total liabilities (1,506.8) (1,389.8) (1,326.8)
Net assets 3,485.0 3,408.2 3,506.6
Equity
Ordinary share capital issued 32.0 32.0 32.0
Share premium 25.7 25.6 25.6
Capital redemption reserve 236.5 236.5 236.5
Other non-distributable reserve 276.8 276.8 276.8
Retained earnings 2,914.0 2,837.3 2,935.7
Total equity 3,485.0 3,408.2 3,506.6
PERSIMMON PLC
Condensed Consolidated Statement of Changes in Shareholders' Equity
For the six months to 30 June 2025 (unaudited)
Share capital Share premium Capital redemption reserve Other non-distributable reserve Retained earnings Total
£m £m £m £m £m £m
Six months ended 30 June 2025:
Balance at 1 January 2025 32.0 25.6 236.5 276.8 2,935.7 3,506.6
Profit for the period - - - - 100.0 100.0
Other comprehensive expense - - - - (0.4) (0.4)
Transactions with owners:
Dividends on equity shares - - - - (128.1) (128.1)
Issue of new shares - 0.1 - - - 0.1
Own shares purchased - - - - (1.6) (1.6)
Share-based payments (net of tax) - - - - 8.4 8.4
Balance at 30 June 2025 32.0 25.7 236.5 276.8 2,914.0 3,485.0
Six months ended 30 June 2024:
Balance at 1 January 2024 31.9 25.6 236.5 276.8 2,847.7 3,418.5
Profit for the period - - - - 110.7 110.7
Other comprehensive expense - - - - (0.3) (0.3)
Transactions with owners:
Dividends on equity shares - - - - (127.9) (127.9)
Issue of new shares 0.1 - - - - 0.1
Own shares issued - - - - 0.4 0.4
Own shares purchased - - - - - -
Exercise of share options/share awards - - - - - -
Share-based payments (net of tax) - - - - 6.7 6.7
Balance at 30 June 2024 32.0 25.6 236.5 276.8 2,837.3 3,408.2
Year ended 31 December 2024:
Balance at 1 January 2024 31.9 25.6 236.5 276.8 2,847.7 3,418.5
Profit for the year - - - - 267.1 267.1
Other comprehensive expense - - - - (1.1) (1.1)
Transactions with owners:
Dividends on equity shares - - - - (191.8) (191.8)
Issues of new shares 0.1 - - - - 0.1
Own shares purchased - - - - (0.2) (0.2)
Share-based payments - - - - 14.0 14.0
Balance at 31 December 2024 32.0 25.6 236.5 276.8 2,935.7 3,506.6
PERSIMMON PLC
Condensed Consolidated Cash Flow Statement
For the six months to 30 June 2025 (unaudited)
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
Note £m £m £m
Cash flows from operating activities:
Profit for the period 100.0 110.7 267.1
Tax charge 5 46.7 35.6 92.0
Finance income (6.2) (5.6) (11.1)
Finance costs 13.3 8.7 21.2
Depreciation charge 10.7 9.8 20.1
Impairment of intangible assets 2.0 0.9 1.6
Exceptional items (non-cash) 4 16.2 2.0 27.0
Profit on disposal of fixed assets (0.4) (0.3) (2.5)
Share-based payment charge 8.4 6.7 14.7
Net imputed interest expense (7.4) (4.0) (10.0)
Other non-cash items (0.4) 0.2 (0.5)
Cash inflow from operating activities 182.9 164.7 419.6
Movement in working capital:
Increase in inventories (307.2) (93.6) (200.4)
Decrease in trade and other receivables 27.3 21.5 12.7
Increase/(decrease) in trade and other payables 34.9 (81.6) (49.6)
Decrease in shared equity loan receivables 1.9 1.9 4.6
Cash (absorbed)/generated from operations (60.2) 12.9 186.9
Interest paid (4.8) (4.6) (9.3)
Interest received 2.7 3.0 5.1
Tax paid (44.2) (44.5) (97.8)
Net cash (outflow)/inflow from operating activities (106.5) (33.2) 84.9
Cash flows from investing activities:
Acquisition of loan notes - (17.5) (17.5)
Purchase of property, plant and equipment (25.8) (13.6) (32.3)
Proceeds from sale of property, plant and equipment 0.6 0.6 4.8
Net cash outflow from investing activities (25.2) (30.5) (45.0)
Cash flows from financing activities:
Lease capital payments (2.4) (1.7) (4.0)
Payment of Partnership liability - (4.6) (4.6)
Bank fees paid - - (0.9)
Own shares purchased (1.6) - (0.2)
Share options consideration 0.1 0.1 0.1
Dividends paid 7 - - (191.8)
Net cash outflow from financing activities (3.9) (6.2) (201.4)
Decrease in net cash and cash equivalents 13 (135.6) (69.9) (161.5)
Cash and cash equivalents at the start of the period 258.6 420.1 420.1
Cash and cash equivalents at the end of the period 13 123.0 350.2 258.6
Notes
1. Basis of preparation
The half year condensed financial statements for the six months to 30 June
2025 have been prepared in accordance with the Disclosure Guidance and
Transparency Rules of the Financial Conduct Authority and with UK adopted
International Accounting Standard ("IAS") 34 Interim Financial Reporting. The
half year financial statements are unaudited but have been reviewed by the
auditors in accordance with ISRE2410 whose report is set out at the end of
this report. This report should be read in conjunction with the Group's annual
financial statements for the year ended 31 December 2024, which have been
prepared in accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006 and UK adopted IFRS.
The comparative figures for the financial year ended 31 December 2024 are not
the company's statutory accounts for that financial year. Those accounts have
been reported on by the company's auditors and delivered to the Registrar of
Companies. The report of the auditors was (i) unqualified, (ii) did not
include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying their report and (iii) did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
Except as described below, the accounting policies applied are consistent with
those of the annual financial statements for the year ended 31 December 2024,
as described in those financial statements.
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.
Going concern
The Group's performance in the six months ended 30 June 2025 was in line with
the Board's expectations, operating with a very 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 delivered 4,605 new homes (2024: 4,445) and generated profit before
tax of £146.7m (2024: £146.3m) in the period. At 30 June 2025, the Group had
a strong balance sheet with £123.0m of cash (2024: £350.2m), high quality
land holdings and land creditors of £401.1m (December 2024: £423.2m). The
Group has a Revolving Credit Facility of £700m which was extended by a
further year during the period out to 5 July 2030. The facility was undrawn at
30 June 2025.
The Group's forward order book at 1 July 2025 includes 3,338 new homes sold
forward into the private owner occupier market (2024: 2,971 new homes forward
sold) with an average sales price of c.£291,500. In addition, the cumulative
average private sales reservation rate, excluding bulk, for the first five
weeks since the half year is c.12% stronger than for the same period last year
and has resulted in a forward order book, including legal completions
recognised in the second half of c.£1.9bn (2024: c.£1.7bn).
The Directors have reviewed the Group's principal risks, see note 17 of this
announcement, and determined that there are no new principal risks facing the
business to those disclosed in the financial statements for the year ended 31
December 2024. The Directors considered the impact of these risks on the going
concern of the business when approving these full year financial statements
for the Group.
The Directors have considered the going concern assessment for the period to
31 December 2026 and included severe but plausible scenarios based on reduced
new home sales materialising together with the likely effectiveness of
mitigating actions that would be executed by the Directors. In each scenario,
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.
Having considered the inherent strength of the UK housing market, the
resilience of the Group's average sales prices and the Group's scenario
analysis, the Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future. Accordingly, they continue to adopt the going concern basis in
preparing these condensed consolidated half year financial statements.
Goodwill and brand intangibles
The key sources of estimation uncertainty in respect of goodwill and brand
intangibles are disclosed in note 14 of the Group's annual financial
statements for the year ended 31 December 2024. Other than set out below no
impairment trigger events have been identified in the period to 30 June 2025.
The goodwill allocated to the Group's 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 historic experience and market conditions. This review
resulted in an impairment charge of £2.0m recognised during the period. This
impairment charge reflects on-going consumption of the acquired strategic land
holdings and is consistent with prior years.
2. Segmental analysis
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.
3. Revenue
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£m £m £m
Revenue from the sale of new housing - private 1,206.0 1,054.7 2,606.0
Revenue from the sale of new housing - housing association 102.0 115.6 257.3
Revenue from the sale of new housing - total 1,308.0 1,170.3 2,863.3
Revenue from the sale of part exchange properties 185.9 138.9 322.6
Revenue from the provision of internet services 8.9 7.3 14.8
Revenue from the sale of goods and services as reported in the statement of 1,502.8 1,316.5 3,200.7
comprehensive income
4. Exceptional items
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£m £m £m
Legacy buildings provision (through Cost of Sales) - 23.0 (2.0)
Impairment of a financial asset - (25.0) (25.0)
Affordable Homes Programme contribution (through Operating expenses) (15.2) - -
Project fees (through Operating expenses) (1.0) - (7.4)
Exceptional items (16.2) (2.0) (34.4)
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 is
£15.2m.
As the CMA investigation was on-going at the balance sheet date, and Persimmon
agreed to the proposed commitments before the half year financial information
had been released, in accordance with IAS 10 "Events after the Reporting
Period" the contribution has been treated as an adjusting post balance sheet
event.
Given the non-recurring nature and scale, the contribution and 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. The contribution has yet to
be paid and is therefore reported in the balance sheet within Trade and other
payables. It is expected to be paid within three months from the CMA accepting
the commitments.
5. Tax
Analysis of the tax charge for the period
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£m £m £m
Tax charge comprises:
UK corporation tax in respect of the current period 40.4 35.8 78.8
RPDT in respect of the current period 6.1 6.5 12.3
Adjustments in respect of prior years - (7.8) (9.1)
46.5 34.5 82.0
Deferred tax relating to origination and reversal of temporary differences 0.2 1.1 13.7
Adjustments recognised in the current year in respect of prior years' deferred - - (3.7)
tax
0.2 1.1 10.0
Tax charge for the year recognised in Statement of Comprehensive Income 46.7 35.6 92.0
The tax charge for the period can be reconciled to the accounting profit as
follows:
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£m £m £m
Profit from continuing operations 146.7 146.3 359.1
Tax calculated at UK corporation tax rate (inclusive of RPDT) 42.5 42.4 104.1
Goodwill impairment losses that are not deductible 0.3 0.2 0.5
Expenditure not allowable for tax purposes 4.8 0.3 2.1
Impact of RPDT on deferred tax - 0.1 -
Items not deductible for RPDT (0.4) 0.7 (0.3)
Enhanced tax reliefs (0.5) (0.5) (1.6)
Adjustments in respect of prior years - (7.8) (12.8)
Non-deductible impairment provision - 0.2 -
Tax charge for the period recognised in statement of comprehensive income 46.7 35.6 92.0
The tax charge for the period 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 period, 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 period. 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 31.8% which was higher than in
previous periods (31 December 2024: 25.6%; 30 June 2024: 24.3%) as a result of
the prior year benefitting from deductions arising from the finalisation of
prior year tax returns, including one-off items in respect to the treatment of
building safety remediation provisions.
Deferred tax recognised in other comprehensive expense
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£m £m £m
Recognised on remeasurement loss on pension schemes 0.1 - 0.4
Tax recognised directly in equity
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£m £m £m
Arising on transactions with equity participants
Current tax related to equity settled transactions - - (0.1)
Deferred tax related to equity settled transactions - (0.1) 0.9
- (0.1) 0.8
6. 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 period of 319.9m (June 2024: 319.4m;
December 2024: 319.6m) which excludes those held in the employee benefit trust
and any treasury shares, all of which are treated as cancelled.
Diluted earnings per share is calculated by dividing the profit for the period
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 period, giving a figure of
323.1m (June 2024: 322.3m; December 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:
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
Basic earnings per share 31.2p 34.7p 83.6p
Underlying basic earnings per share 36.8p 35.7p 92.1p
Diluted earnings per share 30.9p 34.3p 82.7p
Underlying diluted earnings per share 36.5p 35.4p 91.1p
The calculation of the basic and diluted earnings per share is based upon the
following data:
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£m £m £m
Underlying earnings attributable to shareholders 117.9 114.2 294.2
Exceptional items (net of tax) (15.9) (2.6) (25.5)
Goodwill impairment (2.0) (0.9) (1.6)
Earnings attributable to shareholders 100.0 110.7 267.1
At 30 June 2025 the issued share capital of the Company was 320,311,963
ordinary shares (30 June 2024: 319,441,898; 31 December 2024: 319,914,868
ordinary shares).
7. Dividends/Return of Capital
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£m £m £m
Amounts recognised as distributions to capital holders in the period:
2023 final dividend to all shareholders of 40p per share paid July 2024 - 127.9 127.9
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 July 2025 128.1 - -
Total capital return to shareholders 128.1 127.9 191.8
On 11 July 2025, 40p per share (or £128.1m) of capital was returned to
shareholders as a final cash dividend in respect of the financial year 2024
which was approved by shareholders at the AGM on 1 May 2025. This has been
accrued for in the half year results.
8. Inventories
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Land 2,289.2 2,103.6 2,265.6
Work in progress 1,694.7 1,511.8 1,426.3
Part exchange properties 163.8 122.4 154.4
Showhouses 62.9 57.6 56.5
Inventories 4,210.6 3,795.4 3,902.8
The Group has conducted a review of the net realisable value of its land and
work in progress portfolio at 30 June 2025. Our approach to this review has
been consistent with that conducted at 31 December 2024 and was fully
disclosed in the financial statements for the year ended on that date. This
review gave rise to an impairment of land and work in progress of £nil (2024:
£nil). The key judgements and estimates in determining the future net
realisable value of the Group's land and work in progress portfolio are future
sales prices, house types and costs to complete the developments. Sales prices
and costs to complete were estimated on a site by site basis. 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.
Net realisable value provisions held against inventories at 30 June 2025 were
£16.7m (30 June 2024: £18.8m; 31 December 2024: £16.8m). Following the
review, £25.1m of inventories are valued at net realisable value rather than
historical cost (30 June 2024: £27.4m; 31 December 2024: £26.4m).
9. Shared equity loan receivables
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£m £m £m
Shared equity loan receivable at start of period 29.0 32.1 32.1
Settlements (1.9) (1.9) (4.6)
Gains 0.1 0.5 1.5
Shared equity loan receivable at end of period 27.2 30.7 29.0
All gains/losses have been recognised in the statement of comprehensive
income. Of the gains recognised in finance income for the period £nil (June
2024: £nil; December 2024: £nil) was unrealised.
10. Assets/liabilities held for sale
On 14 May 2025, the Group announced the sale of FibreNest, its full fibre
broadband service, to BUUK Infrastructure, subject to regulatory clearance.
The sale was expected to complete, subject to regulatory clearance, within
three months of the announcement. The sale completed on the 5 August 2025.
Under IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations"
the identified assets and liabilities to be sold to BUUK Infrastructure have
been reported as assets/liabilities held for sale in the balance sheet as at
30 June 2025 (Assets: £65.1m; Liabilities £(8.6)m). Based on an initial
consideration of £70.0m, a profit on disposal will be reported as an
exceptional item in the second half of the year.
11. Legacy buildings provision
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£m £m £m
Legacy buildings provision at start of period 235.3 283.2 283.2
Additions to provisions in the year - - 25.0
Imputed interest on provision in the period 3.0 3.0 7.4
Provision released in the period - (23.0) (23.0)
Provision utilised in the period (30.7) (24.7) (57.3)
Legacy buildings provision at end of period 207.6 238.5 235.3
The number of developments we are now responsible for stands at 83 (December
2024: 83), of which 41 (December 2024: 40) 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 24 months and the amount provided for
has been discounted accordingly.
During the period £30.7m of the provision has been utilised for works
undertaken whilst £3.0m of imputed interest has been charged to the statement
of comprehensive income through finance costs.
Based on current cashflow forecasts management forecast that £114.7m of the
provision will be utilised within the next 12 months and as a result has been
reported as a current liability in the 30 June 2025 balance sheet.
The assessment of the provision remains a highly complex area with judgments
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 +/- £13.9m.
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.
12. Financial instruments
In aggregate, the fair value of financial assets and liabilities are not
materially different from their carrying value.
Financial assets and liabilities carried at fair value are categorised within
the hierarchical classification of IFRS 7 Revised (as defined within the
standard) as follows:
30 June 2025 30 June 2024 31 December 2024
Level 3 Level 3 Level 3
£m £m £m
Shared equity loan receivables 27.2 30.7 29.0
Shared equity loan receivables
Shared equity loan receivables represent loans advanced to customers 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 assets. As a result, the Group has
applied inputs based on current market conditions and the Group's historic
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 a discount rate of 8.8% (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
asset. Furthermore, whilst not easily accessible in advance, the resulting
change in security value may affect the credit risk associated with the
counterparty, influencing fair value further.
13. Reconciliation of net cash flow to net cash and analysis of net cash
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£m £m £m
Net cash at start of period 258.6 420.1 420.1
Decrease in net cash equivalents in cash flow (135.6) (69.9) (161.5)
Cash and cash equivalents at period end 123.0 350.2 258.6
IFRS 16 lease liability (14.4) (12.9) (14.5)
Net cash at end of period 108.6 337.3 244.1
Net cash is defined as cash and cash equivalents, bank overdrafts, finance
lease obligations and interest bearing borrowings. At 30 June 2025, £2.8m
(June 2024: £1.9m, December 2024: £nil) of cash recognised was held at third
party solicitors with an undertaking.
The Group has a Revolving Credit Facility of £700m which was extended by a
further year during the period out to 5 July 2030. The facility was undrawn at
30 June 2025.
14. Retirement benefit assets
As at 30 June 2025 the Group operated five employee pension schemes, being
three Group personal pension schemes and two defined benefit pension schemes.
Re-measurement 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.
The amounts recognised in the consolidated statement of comprehensive income
are as follows:
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£m £m £m
Current service cost - 0.2 0.2
Administrative expense 0.2 0.2 0.4
Curtailment cost - 0.1 0.1
Pension cost recognised as operating expense 0.2 0.5 0.7
Interest Cost - - 18.6
Return on assets recorded as interest (3.5) (2.8) (24.3)
Pension cost recognised as a net finance credit (3.5) (2.8) (5.7)
Total defined benefit pension income recognised in profit or loss (3.3) (2.3) (5.0)
Re-measurement loss recognised in other comprehensive expense 0.5 0.3 1.5
Total defined benefit scheme gain recognised (2.8) (2.0) (3.5)
The amounts included in the balance sheet arising from the Group's obligations
in respect of the Pension Scheme are as follows:
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Fair value of pension scheme assets 500.4 529.6 504.3
Present value of funded obligations (366.9) (400.4) (373.6)
Net pension asset 133.5 129.2 130.7
15. Contingent liability
As disclosed in note 11 the Group has undertaken a review of all 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.
16. Post balance sheet events
Other than referenced in Notes 4 and 10 there were no other post balance sheet
events.
17. Principal risks
The principal risks that could substantially affect the Group's business and
results were previously reported on pages 70 to 75 of the 2024 Annual Report
and Accounts. During the period, the Board has continued to monitor these
risks and has made no changes to their assessment in the Annual Report.
Statement of Directors' responsibilities in respect of the Half Year Report
We confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared in
accordance with UK adopted International Accounting Standard ("IAS") 34
Interim Financial Reporting
· the Half Year Report includes a fair review of the information
required by:
o DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements and a description of the principal risks and uncertainties for the
remaining six months of the year; and
o DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
The Directors of Persimmon Plc and their function are listed below:
Roger Devlin Chairman
Dean Finch Group Chief Executive
Andrew Duxbury Chief Financial Officer
Annemarie Durbin Senior Independent Director
Andrew Wyllie Non-Executive Director
Alexandra Depledge Non-Executive Director
Colette O'Shea Non-Executive Director
Paula Bell Non-Executive
Director
Anand Aithal Non-Executive Director
By order of the Board
Dean Finch
Andrew Duxbury
Group Chief Executive Chief Financial
Officer
12 August 2025
The Group's annual financial reports, half year reports and trading updates
are available from the Group's website at www.persimmonhomes.com/corporate
(http://www.persimmonhomes.com/corporate) .
INDEPENDENT REVIEW REPORT TO PERSIMMON PLC
Conclusion
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2025 which comprises the Condensed Consolidated Statement of
Comprehensive Income, the Condensed Consolidated Balance Sheet, the Condensed
Consolidated Statement of Changes in Shareholders' Equity, the Condensed
Consolidated Cash Flow Statement and the related notes 1 to 17. We have read
the other information contained in the half yearly financial report and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the 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 company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
Manchester
12(th) August 2025
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