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?

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.

Proposed Return Of Cash To Shareholders

Persimmon PLC (PSN:LSE) set a new 52-week high during today's trading session when it reached 1,053.84. Over this period, the share price is up 49.52%.


As of Mar 19, 2013, the consensus forecast amongst 15 polled investment analysts covering Persimmon plc advises that the company will outperform the market. This has been the consensus forecast since the sentiment of investment analysts improved on Jun 29, 2012. The previous consensus forecast advised investors to hold their position in Persimmon plc.

What's the best option regarding the return of cash to shareholders: dividend or shares? What are the tax implications for holdings in a SIPP or ISA?

Persimmon proposes return of cash to shareholders
Mon 18 Mar 2013

PSN - Persimmon


LONDON (SHARECAST) - FTSE 250-listed house building company Persimmon has issued a circular containing details of a proposed 75p per share return of cash to shareholders worth approximately 227m pounds altogether.

The proposed 75p per share cash return is the first payment under the group’s capital return plan and the circular includes a notice convening a general meeting of the company to be held on the same day as the annual general meeting, on April 18th, to approve the return of cash.

The group said that it would propose to effect the return of cash through a bonus issue of B Shares and/or C Shares which were intended to enable shareholders to elect to receive their return of cash proceeds as either a return of capital or as dividend income or any combination of the two, subject to applicable overseas restrictions.

Under this proposed return of cash, and subject to shareholder approval being obtained, Persimmon said that for every one existing ordinary share held at 6.00 pm on April 19th 2013, 75p is to be returned to shareholders through the issue to them of either one B Share - which will be redeemed by the company for 75p - or one C Share - on which a dividend of 75p will be paid - after which the C Share will be automatically reclassified as a deferred share and subsequently repurchased by the company for an aggregate consideration of one penny and then cancelled.

The announcement follows an update issued by the company in February 2012 when the company announced a strategy that aimed to return £1.9bn - or £6.20 per share - of surplus capital to shareholders over nine and a half years ending in 2021.

Persimmon’s shares were up 1.0% to 962.50p at 13:16 on Monday

Sold my holding - 1000 shares been in since 1st July 2012 @ 638p :-))

Interim Management Statement