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8 Jan 2009 07:00
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TRADING UPDATE - 8 JANUARY 2009
Persimmon plc announces the following trading update ahead of its Preliminary ResultsΒ for the year endedΒ 31 December 2008, which will be announced on TuesdayΒ 3 March 2009.
Results for the full year will be in line withΒ marketΒ expectations. We have legally completedΒ 10,202Β units at an average selling price ofΒ c.Β Β£172,000. This represents a turnover of c. Β£1.76Β billion.
Our emphasis on cash control has resulted in a reduction of totalΒ borrowingsΒ at the year endΒ toΒ c. Β£600 million (June 2008: Β£906Β million). As anticipated at the time of our Interim Results on 21 August 2008 we have generated good net cash inflow from operations through the second half of 2008. Close control of work in progress includingΒ the focus on sales of stock properties andΒ overΒ 50% reductionΒ inΒ part exchangeΒ holdings has resulted in thisΒ strongΒ cash generation,Β despite theΒ previously reportedΒ deterioration in trading conditions encountered from early September 2008. The year end borrowings are lower than originally anticipated due to the early receipt of tax repayment following the provisions announced inΒ ourΒ Interim Management StatementΒ on 27 October 2008.
Until there is an improvement in theΒ restricted credit conditionsΒ currently experiencedΒ we will continue to focus on conservingΒ cash. As a consequenceΒ the Board does not intendΒ to pay a final dividend this year.
In addition, we have commenced discussions for theΒ plannedΒ refinancing of the Group's credit facilities. Having made good progress, our bank syndicate and private placement investors are actively engaged in establishing facilities appropriate for the future needs of the business together with covenants reflective of current credit market conditions.
Whilst we believe that the long term future for theΒ UKΒ housing market remains good, the short term outlookΒ isΒ challenging. However, we currentlyΒ haveΒ forwardΒ sales ofΒ c.Β Β£400 million.
Further details ofΒ the Group'sΒ performance for the yearΒ together with aΒ generalΒ market update will be providedΒ withΒ the announcement ofΒ our Results forΒ the year ended 31 DecemberΒ 2008,Β onΒ Tuesday 3Β March 2009.
For further information, please contact:
Persimmon plc
Mike Farley, Group Chief Executive
Mike Killoran, Group Finance Director
On 8 JanuaryΒ 2009:Β +44 (0) 207Β 153 1533
Thereafter: +44 (0) 1904 642 199Β
M: Communications
Edward Orlebar:Β +44 (0) 207Β 153 1523Β / +44 (0) 7738 724 630
Charlotte McMullen:Β +44 (0) 207 153 1549 / +44 (0) 7921 881 800
Marylene GuernierΒ +44 (0) 207 153 1269 / +44 (0) 7776 303 788
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