Analyst Views: What did you think of Persimmon’s performance in the past six months?

 

Persimmon has delivered a positive set of interim results, with units, average selling prices, margins and profits moving ahead. The group reports a continued improvement in current trade and boasts a healthy level of forward orders. We have nudged up our forecasts following this announcement.

 

 

Along with a sharp increase in operating margin and a previously announced acceleration of the capital return programme, the overall current trading position for Persimmon is extremely healthy… With the sector currently showing little signs of fatigue, prospects for Persimmon remain bright.

 

 

Persimmon offers a rising dividend and a yield of around 7.5 per cent. We believe Persimmon is the highest quality national house builder due to its long land bank, focus on higher  margin strategic land acquisition, and its timber frame maker Space4. Strong land  investment in the period gives a current land bank of six years. Buy.