Help me - I bought these a month ago - when they were being tipped all over the place. Since then the sector has gone down the swannie - should cut my losses (13%) or hold on for the long haul?

"Prime Markets says that the dividend boost at house-builder Persimmon should support a break higher in the shares and reiterates its buy recommendation on the stock.

Housebuilder Persimmon has today produced a sterling set of numbers, offsetting a revenue fall with a profits boos t while reducing net finance costs and net borrowings, said head of dealing at Prime Markets, Richard Curr.

The broker expects shares to pick up to 413p in the coming seven to ten days."

Persimmon plc today announces Final Results for the year ended
31 December 2011


Highlights

· Underlying pre-tax profits* increased 55% to £148.1m (2010: £95.5m)
· Full year revenue of £1.54bn (2010: £1.57bn)
· Legal completions steady at 9,360 (2010: 9,384) and average selling price** reduced by 2% to £166,142 (2010: £169,339) reflecting a greater proportion of first time buyer homes in the sales mix
· Operating margin* increased to 10.0% (2010: 8.2%); with second half improvement to 10.8%
· Strong cash generation of £119m with net cash of £41m at year end (2010: net borrowings of £51m)
· Healthy landbank, with c.14,300 plots acquired in the year, bringing the total of owned and controlled plots to c.63,300, representing over 6.5 years supply
· Continued focus on the development of strategic land with c.50% of replacement land successfully converted from the Group's strategic landbank
· Net assets per share increased by 5% to 608.6p (2010: 579.1p)
· Underlying basic earnings per share* increased by 48% to 36.8p (2010: 24.8p)
· Increased final dividend of 6.0p per share (2010: 4.5p per share), making a total of 10.0p for the year, an increase of 33%
· Strong forward sales of £927.4m (2010: £848.1m) - up 9.4%

*stated before exceptional items and goodwill charges
**stated before fair value charge on shared equity sales


Strategic review and long term Capital Return Plan

· Detailed strategy review that seeks to take full advantage of Persimmon's excellent prospects, while maintaining the Group's capital discipline
· Programme to return £1.9bn (£6.20 per share) of cash to shareholders by way of dividends over 9.5 years, from 2013 to 2021
· Group to remain largely ungeared throughout this period
· Strength of the Persimmon business model will support development of a stronger, larger business over the next decade while maximising return on capital employed and providing greater certainty of returns to shareholders
· We believe that successful execution of this strategy will optimise the financial performance of the business and enhance value for shareholders

Nicholas Wrigley, Group Chairman, said: "Underlying profit before tax grew by 55% during the year, as Persimmon's successful strategy of improving operating margins, investing in high quality land and generating surplus cash to pay down debt proved highly effective, despite difficult prevailing housing market conditions.

Looking ahead, we have made a strong start to the year, with forward sales up by 9.4% to £927 million. Visitor levels and reservations continue on an improving trend and, although we expect the UK housing market to remain difficult, Persimmon is in a strong position to meet this challenge.

In addition to the strong financial results we are reporting today I am pleased to announce the conclusion of a strategic review, which will see Persimmon return £1.9bn of cash to shareholders over the next 9.5 years, whilst maintaining a largely ungeared balance sheet. This new strategy sets Persimmon on course to build a stronger, larger business and deliver enhanced shareholder returns over the next decade."

Excellent volume so far.

It's a nice "Up-Market" business; but the time to buy was 2008 (under £2!) so that now the Yield would be nearer 5% - as it is, anyone buying now (£7), is getting a poor Yield despite it being raised to 10p/sh (News, today-DYOR), over the year.
[PSN] PE is almost 10, making this about 3x the "value" of TW, - but TW. is yet to return to Dividends. I hold only [TW.] and suspect TW will increase in value more than PSN, as it has further to (re-)gain. I bought TW about 30p av....now double-ish.
I think the figures released really show the housing mkt has yet to gain legs.....all down to Banking Loan restrictions, etc.
IMHO.

RNS Number : 2978Y

Persimmon PLC

28 February 2012

28 February 2012

Persimmon Plc

Directorate Change

Persimmon Plc (the "Company") is pleased to announce that Richard Pennycook, Non-Executive Director will be appointed as the Senior Independent Director on 19 April 2012, in succession to David Thompson who is retiring as a Non-Executive Director on that date, as announced earlier today.

The Company also announces that Mark Preston, Non-Executive Director was appointed to both the Audit and Remuneration Committees on 27 February 2012, following David Thompson's retirement from both of these committees on that date.

G N Francis

Group Company Secretary

This information is provided by RNS

The company news service from the London Stock Exchange

END

Persimmon is expected to report a good first-half performance when it updates the market on Tuesday.

The housebuilder continues to make good progress in all its main areas and has a profit margin that most of its main competitors can only admire.

Analysts at Panmure said the company should report a good balance sheet with a net cash position.

“For 2012 we believe that Persimmon will report a 2.1pc increase in volumes [this is conservative], and a 1pc increase in pricing. Net margins are likely to increase by 140bps in our view as the group benefits from a higher proportion of new land.”

Profits before tax for the full year are expected to come in at £178.8m.

After a good start to the year attention will be focused on the second half, particularly August, which is typically a quiet month. The Olympics could exacerbate any slowdown.

Persimmon is likely to update the market on completions the number of houses sold during the period as well as work on developing the company’s land bank.

Trading Update

Persimmon plc announces the following update ahead of its Half Year Results to 30 June 2012, which will be released on Tuesday 21 August 2012.

We legally completed 4,712 new homes (2011: 4,439) in the first six months of 2012, an increase of 6% on the prior year. Sales rates have continued to run ahead of 2011 through the Spring season, with weekly average private sales rate per site for the first half being c. 18% ahead. Turnover for the first half was c. £805 million, a c. 13% increase on the previous year. Cancellation rates remain at low levels in line with the prior year at c. 18%.

Bovis's sector peer, Persimmon (LSE: PSN.L - news) , follows up on Tuesday with its interims. "Attention will focus on current trade comments in our view, in order to get a feel for the sector's health ahead of the important Autumn trading season," Panmure Gordon said.

Interim Results

Highlights


· Underlying pre-tax profits* increased 65% to £98.7m (2011: £59.7m)

· Revenue 13% ahead at £806.7m (2011: £712.8m)

· Legal completions up 6% to 4,712 (2011: 4,439) and average selling price increased 7% to £171,206 (2011: £160,583)

· Strong improvement in operating margin** increasing 320bps to 12.2% (2011: 9.0%)

· Excellent cash generation of £112.9m (2011: £55.1m) with net cash of £135.2m as at 30 June 2012 (June 2011: net borrowings of £15.2m)

· Landbank strengthened, 5,779 new plots acquired on 50 sites in the first half of the year, bringing the total of owned and controlled plots to 63,786 (2011: 62,364), representing over 6.5 years supply at current sales levels

· Continued focus on the development of strategic land with c.34% of replacement land successfully converted from the Group's strategic landbank

· Net assets per share increased 4% to 625.7p (2011: 601.1p)

· Underlying basic earnings per share* increased 66% to 25.7p (2011: 15.5p)

· Strong forward sales of £1,041m (2011: £1,005m) - up 4%

*stated before exceptional items of £1.7m (2011: £2.2m) and goodwill impairment of £2.1m (2011: £1.6m)

** stated before exceptional items of £1.7m (2011: £12.0m) and goodwill impairment of £2.1m (2011: £1.6m)

Capital Return Plan

· Strong first half performance represents an excellent start to the delivery of the new strategy and plan to return £1.9bn (620p per share) to shareholders over 9 years

Group well on track to make first dividend payment of 75p per share in June 2013

I am so liking that last line skinny that on any weakness I'll be adding more.

They plan to return £6.20 of surplus capital over the next 9 years !

Yep - tough eh! :-)

Bought a shed load of housebuilders earlier this year. Timing was crap as it was near the previous peak of most of them but they are all attacking or breaking those previous high's recently.

Bottom of the cycle reached and now its a case of hanging on til the boom that will happen as sure as night follows day.

Take your pick!

Peel Hunt retains it's Buy Tp increased from 675p to 730p

Panmure Gordon downgrades to Hold Tp raised from 689p to 696p

Numis downgrades to Hold Tp 731p

Davy Research reiterates it's Outperform (no Tp)

Shore Capital reiterates it's sell (no Tp)

Northland Capital reiterates it's Buy Tp 725p

Persimmon (LSE: PSN.L - news)

Half-time results from Persimmon didn't impress the market, either, and the shares fell back 13.5p (2%) to 691p, even though the housebuilder told us of a 65% boost in pre-tax profits, to £98.7m, on revenue up 13% to £806.7m. Completions rose 6% to 4,712, with a 7% higher average selling price of £171,206.

So why the fall? Well, the market has started to gain confidence in the housebuilding recovery, and it's possible that some were getting a little over-exhuberant and were expecting even more

Trading Statement

Persimmon plc announces the following update ahead of its Final Results for the year ended 31 December 2012, which will be released on 25 February 2013.

The volume of new homes legally completed increased by 6% over the prior year to 9,903 (2011: 9,360). With an average selling price of c. £173,400 (2011: £163,999), also 6% ahead of the prior year, revenues for the period totalled c. £1.72 bn (2011: £1.54 bn), an increase of 12%.

We welcome the renewal of the Government sponsored FirstBuy scheme on 26 September 2012 which has led to a strengthening of first time buyer interest in our sites as we re-launched our FirstBuy marketing programme. We have recently secured an additional allocation of c. 3,000 new homes as part of the FirstBuy funding. As a result, we anticipate an increase in sales to first time buyers as we enter the new spring season in 2013.

As indicated in our Interim Management Statement on 13 November 2012 our underlying operating margin continued to strengthen in the second half and we anticipate that it will be c. 13% for the full year (2011: 10.0%), with our second half margin over 13.5% (2011: 10.8%).

Margin improvement remains a key part of our strategy, with the medium term aim of returning to underlying operating margins within the range of 15% to 17%. We believe we have made further encouraging strides towards achieving this objective through the launch of new sites offering attractive returns and exercising firm control over our costs . We have successfully opened all 60 new sites scheduled for the second half of the year and are currently selling from c. 375 sites. We anticipate further growth in our outlet network in the first half of 2013. Our forward sales at the year end totalled c. £645m (2011: £615m) which provides a healthy platform for 2013.

We have continued to invest in the future growth of the business, acquiring c. 9,400 plots of new land at attractive values in the second half of the year. At 31 December 2012 the plots owned and under control in our consented land back totalled c. 68,000 plots (2011: 63,335).

Despite continuing to make substantial new investments in our forward land supply we have delivered strong free cash generation due to the continued improvement in cash margins. We held c. £200 million of cash balances at 31 December 2012 (2011: £41 million).

The combination of improved margins, strong cash generation and substantial land acquisition places
the business in a robust position for the delivery of our long term strategy.

Persimmon has also announced today that Mike Farley, Group Chief Executive, has decided to retire at the AGM in April and will be succeeded by Jeff Fairburn, currently Persimmon's Group Managing Director and CEO of the Northern Division. Details of this appointment, together with a number of other management changes, are contained in a separate announcement also being released today.

We will give a further update on our assessment of the housing market over the early weeks of 2013 when we announce our results for the year ended 31 December 2012 on Monday 25 February 2013.

In the Sunday Mail today - builders see signs of spring as housing market blossoms.

Persimmon is forecast to unveil a pre tax profit of £206m for 2012, up from £164m in 2011. Shares reached 909.5p on Friday, having started the week at 875.5p.

Final Results

Highlights

· Underlying profit before tax increased by 52% to £225.1m (2011: £148.1m)
· Full year revenue up 12% to £1.72bn (2011: £1.54bn)
· Legal completions increased by 6% to 9,903 (2011: 9,360) and average selling price* increased 6% to £175,640 (2011: £166,142)
· Operating margin** increased to 13% (2011: 10%); with second half improvement to 13.7%
· Return on capital employed increased by 47% to 12.2% (2011: 8.3%)
· A further c.14,800 plots acquired in the year bringing consented landbank to 68,200 representing 6.9 years supply
· Continued focus on the development of strategic land with c.38% of replacement land successfully converted from the Group's strategic landbank
· Underlying basic earnings per share** increased by 57% to 57.6p (2011: 36.8p)
· Net cash of £201m at 31 December 2012 (2011: £41m cash)
· Pre dividend cash generation of £179m
· Forward sales strongly ahead at over £1bn (2012: £927.4 million), an increase of 9%
· Management succession plan announced in January 2013. Mike Farley, Group Chief Executive to retire at AGM in April and will be succeeded by Jeff Fairburn, Group Managing Director

Capital Return Plan

· Excellent start to the delivery of the new long term strategy and a solid outperformance of initial expectations
· First cash return from long term capital return plan, 75p per share, to be paid on 28th June 2013, subject to shareholder approval

*stated before fair value charge on shared equity sales
**stated before exceptional items and goodwill impairment

Citi tipsters also cast their eyes over the housing market a day after Bovis Homes (LON:BVS) and Persimmon (LON:PSN) reported their results yesterday.

Citi reckons Bovis shares are likely to take a breather after a strong run as it cuts the stock to ‘neutral’ from ‘buy’.

The housebuilder is now nearing the broker’s target price of 710p.

“More promotion of strategic land in 2013 should negatively impact 2013 profits by around £3.5m, but this should boost the land bank and improve future profitability,” Citi added.

As for Persimmon, Citi believes the cash inflow from operating activities is a sound basis for the group to deliver its capital return strategy without denting the balance sheet.

Persimmon (Other OTC: PSMMF - news) : Deutsche Bank increases target price from 849p to 916p leaving its hold recommendation unchanged. Goldman Sachs revises target price from 895p to 905p and stays with its neutral rating.