Persimmon (PSN)

Sector:

Household Goods

Index:

FTSE 100

2,164.00p
   
  • Change Today:
      36.00p
  • 52 Week High: 3,298.00
  • 52 Week Low: 1,534.50
  • Currency: UK Pounds
  • Shares Issued: 318.93m
  • Volume: 1,546,022
  • Market Cap: £6,902m
  • RiskGrade: 350

Persimmon begins orderly site shutdowns, cancels dividend

By Michele Maatouk

Date: Wednesday 25 Mar 2020

LONDON (ShareCast) - (Sharecast News) - Persimmon has begun the orderly shutdown of its construction sites and closed all of its sales sites, the housebuilder said on Wednesday, as it announced the cancellation of its dividend due to the coronavirus outbreak.
The company said only essential work will take place on construction sites, to make partly-built homes safe and secure and where failure to complete the build could put customers in a vulnerable position.

The group said it entered "this period of uncertainty" with a "robust" operational performance in the year to date and a strong forward order book. Nevertheless, it is preparing for a "significant" delay in the timing of legal completions, a rise in cancellation rates and a material slowdown in new sales, the extent and duration of which is uncertain.

"In light of the current uncertainty caused by the Covid-19 virus and its operational impact on UK economic activity, and in line with the group's strategy of minimising the financial risk through the cycle, the board believes that conserving cash and maximising financial flexibility is in the long term best interests of the business and all its stakeholders," it said.

As a result, it has decided to cancel the proposed 125p per share interim dividend payment that was due to be paid on 2 April and to delay the proposed annual, final dividend payment of 110p per share. It will reassess it later in the year when the effects of the virus are clearer.

Persimmon also said that it was unable to provide any financial guidance for 2020.

Group Chief Executive Dave Jenkinson said: "The group's long-term strategy of minimising financial risk and maintaining capital discipline over the long term through the housing cycle, ensures that we are well placed as we enter this period of uncertainty.

"Whilst the impacts of this pandemic go beyond the normal cyclical nature of the housing market, the group's high quality land holdings, significant liquidity and strong balance sheet will allow us to work through these challenges and emerge in a strong position for the benefit of all our stakeholders."

William Ryder, equity analyst at Hargreaves Lansdown, said: "We suspect Persimmon won't be the last housebuilder to take drastic actions to keep cash in the business. In our view, very few people are going to choose to buy a new house in the next few months. It looks like we'll have to spend a chunk of the summer sitting at home, and many will be suffering financial hardship - hardly ideal conditions for house hunting.

"This means housebuilders risk facing the double danger of falling volumes and falling prices. Together, these twin threats can demolish profits and cashflow surprisingly quickly, and while we're not at that point yet, the likelihood is rising. The housebuilders will dig in and try to shelter behind their balance sheets - which are in much better shape than they were during the financial crisis.

"In the short term we think most of the major builders will manage, but if the disruption is prolonged even the stongest balance sheets will find themselves worn down."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Persimmon Market Data

Currency UK Pounds
Share Price 2,164.00p
Change Today 36.00p
% Change 1.69 %
52 Week High 3,298.00
52 Week Low 1,534.50
Volume 1,546,022
Shares Issued 318.93m
Market Cap £6,902m
RiskGrade 350

Persimmon Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
80.00% above the market average80.00% above the market average80.00% above the market average80.00% above the market average80.00% above the market average
15.38% above the sector average15.38% above the sector average15.38% above the sector average15.38% above the sector average15.38% above the sector average
Price Trend
30.28% above the market average30.28% above the market average30.28% above the market average30.28% above the market average30.28% above the market average
61.54% above the sector average61.54% above the sector average61.54% above the sector average61.54% above the sector average61.54% above the sector average
Income
72.82% above the market average72.82% above the market average72.82% above the market average72.82% above the market average72.82% above the market average
90.91% above the sector average90.91% above the sector average90.91% above the sector average90.91% above the sector average90.91% above the sector average
Growth
50% below the market average50% below the market average50% below the market average50% below the market average50% below the market average
23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average

What The Brokers Say

Strong Buy 13
Buy 0
Neutral 2
Sell 0
Strong Sell 1
Total 16
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Persimmon Dividends

  Latest Previous
  Special Special
Ex-Div 13-Jun-19 07-Mar-19
Paid 02-Jul-19 29-Mar-19
Amount 110.00p 125.00p

Trades for 22-May-2020

Time Volume / Share Price
16:35 259,970 @ 2,164.00p
16:29 3 @ 2,169.00p
16:29 9 @ 2,171.00p
16:29 117 @ 2,168.44p
16:29 137 @ 2,169.00p

Persimmon Key Personnel

CEO David Jenkinson
Chair Roger Devlin

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