Compelling evidence, if any were needed, of the rude health enjoyed by the housebuilders at the moment, came with full-year results from Persimmon (PSN). Underlying pre-tax profit rose by nearly a quarter to £783m, and the return on capital employed jumped from 32.1 per cent to a whopping 39.4 per cent. In addition, the 10-year plan announced in 2012, planned initially to return 620p a share in dividends by 2021, has been increased again from 900p to 925p, with shareholders to be paid an extra 25p on 31 March.
Sales rose by 599 to 15,171, and average selling prices were up 4 per cent at £206,765, which helped to push underlying operating margins higher. Cash generation was little short of formidable, with net cash rising from £570m to £913m even after paying out £480m on the purchase of 18,709 new plots of land.
Cost inflation was around 2.5-3 per cent. Group finance director Mike Killoran pointed out that the group has only a minimal reliance on using EU labour.
Analysts at Peel Hunt are forecasting adjusted full-year profit for the year to December 2017 of £830m and EPS of 218.7p (from £783m and 205.6p in 2016).
| PERSIMMON (PSN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,016p | MARKET VALUE: | £6.22bn | |
| TOUCH: | 2,015-2,017p | 12-MONTH HIGH: | 2,255p | LOW: 1,170p |
| DIVIDEND YIELD: | 5.4% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 887p | NET CASH: | £913m | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 1.70 | 218 | 55 | 75 |
| 2013 | 2.10 | 337 | 85 | 70 |
| 2014 | 2.60 | 467 | 122 | 95 |
| 2015 | 2.90 | 630 | 170 | 110 |
| 2016 | 3.14 | 775 | 203 | 110* |
| % change | +8 | +23 | +19 | - |
Ex-div: 15 Jun Payment: 3 Jul *Not including additional dividend of 25p a share | ||||
