Persimmon – 909p

25th February 2013 – final results

Persimmon have put in a very strong performance for the year to 31 December 2012 with pre-tax profit increasing 52% to £225.1m (2011: £148.1m) on revenue up 12% to £1.72bn (2011: £1.54bn). Completions increased by 6% to 9,903 (2011: 9360) and  average selling price increased 6% to £175,640 (2011: £166,142) with operating margins increasing to 13% (2011: 10%) and up to 13.7% in the second half. Although the availability of mortgage credit remains restricted there are some encouraging signs that this is starting to ease. As with other house builders, Persimmon is building on land acquired cheaply during the recession and is set to make further progress. The company is on track to return 75p per share to shareholders on 28th June 2013, part of a nine year plan to return 620p to shareholders. This makes it look an attractive investment to those investors seeking income. BUY FOR INCOME

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