Persimmon's Pre-Tax Profits Soar 65%

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

LONDON -- Persimmon (LSE: PSN.L  ) -- the housebuilding group behind Persimmon Homes, Charles Church, and Westbury Partnerships -- posted a 65% increase in pre-tax profits this morning, up to 98.7 million pounds from 2011's 59.7 million pounds. Revenue was up 13% at 806.7 million pounds, with legal completions up 6% to 4,712, and a strong increase in operating margin, up to 12.2% from 9% a year ago. But the good news was obviously already more than priced-in, as its share price had slipped almost 3% at the time of writing.

Chairman Nicholas Wrigley commented:

The Group has made an excellent start to the current financial year, underlying pre-tax profit up 65% and an operating margin of 12.2% -- an improvement of 320bps compared to the first half of 2011. These results reflect the early success of Persimmon's new strategy to grow into a stronger, larger business whilst returning [1.9 billion pounds] of surplus cash to shareholders The future growth of Persimmon will continue to be based on the solid foundations of the good results achieved in the first half of 2012.

Even with this morning's drop, Persimmon's share price is up almost 80% on a year ago and, with its nine-year plan to return 6.20 pounds per share of surplus capital to shareholders over the next nine years, it looks an attractive proposition, despite the challenging conditions that continue to beset the U.K. housing market.

Persimmon's recent performance shows how well-run companies can provide great opportunities for ordinary investors.

If you're keen to earn great returns, this free Motley Fool report -- "10 Steps to Making a Million in the Market" -- could help you on your way. The report highlights how choppy markets can still provide the big winners to take you to that magic million.

You can download "10 Steps to Making a Million in the Market" for free right now. But hurry, the report is available for a limited time only.

Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors of 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.

Further Motley Fool investment opportunities:

Jon Wallis doesn't own shares in Persimmon. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1990689, ~/Articles/ArticleHandler.aspx, 10/20/2016 9:16:04 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 seconds ago Sponsored by:
DOW 18,162.35 -40.27 -0.22%
S&P 500 2,141.34 -2.95 -0.14%
NASD 5,241.83 -4.58 -0.09%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes