You are here

Prices & Quotes - UK Markets - Persimmon (PSN)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 2,590.00p
Change Today:
-81.00p
Market Cap:
8,264m
Sector:
Household Goods & Home Construction

Persimmon declares dividend as forward sales rise

By Frank Prenesti

Date: Tuesday 10 Nov 2020

LONDON (ShareCast) - (Sharecast News) - House builder Persimmon on Tuesday declared a second dividend of 70p a share as it reported a rise in forward sales driven by strong demand and selling prices.
The company said forward sales were up 43% year on year to 1.36bn after positive summer trading. Restrictions in the housing market were lifted in May and builders have benefited from pent up demand and a stamp duty holiday that was launched in July.

Buyers are also looking to move into bigger properties as Britons reassess housing needs at a time when a majority of them are working from home due to the coronavirus crisis.

Average private weekly sales for the three months to November 9 rose 38% driven by strong gross sales levels, as the wider housebuilding industry returned to greater activity after Coronavirus lockdowns were eased.

On Monday sector peer Taylor Wimpey lifted its 2021 profit guidance and said the recovery of the housing market in the second half had been better than expected.

Persimmon said it was confident that second-half legal completions would be at least in line with the second half of 2019, supported by robust build rates subject to no significant disruption to the construction industry due to additional coronavirus measures introduced to control the pandemic.

"We believe the longer term fundamentals of the UK housing market remain favourable. However uncertainties remain including those posed by further Covid-19 disruption, rising unemployment and the potential impact of the outcome of trade negotiations with the European Union and the rest of the world," the company said.

It also remained cautious in its assessment of potential land opportunities bringing 1,700 new plots of land into the business and spent 260m in the 10 months to October 31.

The group held 960m of cash at the end of October with deferred land commitments of around 325m.

Steve Clayton, a fund manager at Hargreaves Lansdown, which has a position in Persimmon, said the firm was well placed to keep paying dividends".

"Earlier generous capital return programmes were put on hold when everyone had to down tools back in the spring, but Persimmon has bounced back and it is clear their confidence is building. Cash levels are way ahead of where they were a year ago, which bodes well for future cash returns to shareholders."

Interactive investors analyst Richard Hunter said in normal times the company would see a clear pathway ahead, but the effects of the second lockdown cannot yet be quantified "either in terms of the medium term impact on unemployment".

"In addition, dependant on the outcome of the UK's (Brexit) negotiations with the EU, there could be other implications for the economy as a whole including, in Persimmon's case, disruption to its supply chain."

"Even so, the share price has also improved considerably, latterly due to the strong mark-up of prices across the board yesterday. Having jumped by 80% since the March low, the shares now stand up by 3.5% in the year to date. Over the last 12 months, the price has considerably outperformed the wider index, with a rise of 18% comparing to a decline of 16% for the FTSE100."

Hunter added that Persimmon was well positioned and the market consensus of the shares as a strong 'buy' reflected the high regard in which the company is generally held by investors.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Persimmon Market Data

Currency UK Pounds
Price 2,590.00p
Change Today -81.00p
52 Week High 2,972.00p
52 Week Low 1,534.50p
Volume 1,348,958
Shares Issued 319.08m
Market Cap 8,264m

Performance Indicators

Compare performance with the sector and the market.

Key
Vs Market
Vs Sector
Value
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. half market star
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. half sector star
Price Trend
market
  1. full market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. half sector star
  4. empty sector
  5. empty sector
Income
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. half sector star
Growth
market
  1. full market star
  2. full market star
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. empty sector
Price Chg 6m
market
  1. full market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. half sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
P/E
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. empty sector
PEG
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. half market star
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. half sector star
Dividend Yield
Not Available
EPS Growth
market
  1. full market star
  2. full market star
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. half sector star
  5. empty sector
Operating Margin
market
  1. full market star
  2. full market star
  3. full market star
  4. half market star
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. full sector star

What The Brokers Say

Strong Buy 15
Buy 0
Neutral 3
Sell 0
Strong Sell 0
Total 18
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Persimmon Dividends

  Latest Previous
  2nd Interim Interim
Ex-Div 26-Nov-20 27-Aug-20
Paid 14-Dec-20 14-Sep-20
Amount 70.00p 40.00p

Trades for 26-Feb-2021

Time Volume / Share Price
16:41 55,831 @ 2,607.11p
16:35 627,588 @ 2,590.00p
16:29 29 @ 2,581.00p
16:29 48 @ 2,583.00p
16:29 125 @ 2,583.00p

Persimmon Key Personnel

Chair Roger Devlin