20 August 2013 – interim results
Excellent interim results have been reported by the leading housebuilder Persimmon for the six months to 30 June. Legal completions rose by 7% to 5,022 and revenue was 12% ahead at £899.9m. A strong improvement in operating margins meant that underlying pre-tax profits rose by 40% to £135.3m and earnings per share on the same basis were 35% higher at 34.1p. Net cash at the end of the period was £48.1m after investing £236m in new land. The group now has over 70,000 either under ownership or control. The company has also paid its first special dividend of 75p per share in June and a further 10p is scheduled to be paid in June next year. After such a strong run in the share price we think that further progress will be more difficult and reduce our recommendation to HOLD.