Persimmon PLC Trading Update (1352V)
April 14 2016 - 2:00AM
UK Regulatory
TIDMPSN
RNS Number : 1352V
Persimmon PLC
14 April 2016
TRADING UPDATE
THURSDAY 14 APRIL 2016
Persimmon plc ("the Company") will hold its Annual General
Meeting ("AGM") at 12.00 noon today at York Racecourse when the
Chairman will make the following statement regarding current
trading, financial performance and the outlook for the current
financial year. This statement covers the period from 1 January
2016 to date and supplements the update given with the 2015 Final
Results on 23 February 2016.
Consumer confidence is being supported by the continued progress
made by the UK economy. The Group remains focussed on delivering
family housing across the UK, excluding central London, to meet the
continued demand for new homes at affordable prices. The number of
customers visiting our development sites across the UK in the
period was c.12% ahead of last year. Mortgage lenders remain keen
to offer customers the opportunity to access mortgage credit on
very attractive terms. Cancellation rates have continued to run at
historically low levels.
We brought forward a healthy order book into 2016 and our strong
sales performance over the period has resulted in total forward
sales revenue, including legal completions taken so far in 2016,
being 8% higher than last year at GBP2.15 billion (2015: GBP2.00
billion). Our weekly private sales rate per site over this period
was 6% ahead of last year. We have 7,598 new homes sold forward
into the private sale market for 2016 with an average selling price
of c. GBP220,000, an increase of 5.8% over the prior year.
We are currently developing 370 active outlets across the UK,
having opened 75 of the 100 new sites planned for the first half of
the year. The Group continues to build new homes on all sites where
an implementable detailed planning consent has been secured.
Planning delays continue to erode the total number of active
outlets being developed by the industry, hindering the drive to
increase the volume of newly built homes delivered to the market.
We are working hard to increase our active outlet numbers towards
c.400 by the end of 2016 and will continue to focus on increasing
our output to meet market demand. The Group has continued to invest
in high quality new land in support of its future growth.
The Directors are pleased to announce that the Company has
recently concluded an amendment of its GBP300m Revolving Credit
Facility with the Company's five relationship banks, extending its
maturity date to 31 March 2021.
Growing the business as market conditions allow whilst
exercising capital discipline through the cycle is at the heart of
the Group's strategy launched in early 2012. An important aspect of
this capital discipline is our commitment to return surplus capital
to shareholders over the long term.
The fourth payment of the Capital Return Plan of GBP338 million,
or 110p per share, was brought forward and paid as a dividend on 1
April 2016. In addition, on 23 February 2016 the Board announced an
increase of GBP860 million, or 45%, to the original Capital Return
Plan, increasing the total value of the plan to c. GBP2.76 billion
or GBP9.00 per share to be returned to shareholders by the end of
2021.
Since the launch of the new strategy in early 2012 the Group has
delivered a 56% increase in new homes completed, invested over
GBP2,200 million in new land, and opened 812 new development sites.
We have also returned a total of GBP1,071 million of surplus
capital to shareholders, over GBP550m higher than was originally
planned.
The Group is in a strong position to continue to make good
progress over future periods.
We will provide a further report in our Trading Update on
Tuesday 5 July 2016.
For further information please contact:
Jeff Fairburn, Group Simon Rigby
Chief Executive
Mike Killoran, Group Kevin Smith
Finance Director
Persimmon plc Jos Bieneman
Tel: +44 (0) 20 7638 Citigate Dewe Rogerson
9571 on the day
Tel: +44 (0) 1904 Tel: +44 (0) 20 7638
642199 thereafter 9571
This information is provided by RNS
The company news service from the London Stock Exchange
END
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