Final Results

Persimmon PLC
01 March 2004

1 March 2004

                  RESULTS FOR THE YEAR ENDED 31 DECEMBER 2003

Highlights

• Record pre-tax profit* up 32% at £352.5 million (2002: £267.6 million)

• Continued focus on maximising margins: full year operating margin* increased 
  to 20.3% (2002: 17.5%) with second half operating margin of 21.0% (2002: 18.6%)

• 30% increase in basic earnings per share* to 86.8p (2002: 67.0p)

• ROACE* improved to 25.5% (2002: 22.0%)

• Turnover increased to £1.88 billion with the group average selling price
  advancing to £154,810 (2002: £138,530)

• Group volumes were slightly lower at 12,163 (2002: 12,352), in line with
  expectations as a result of planning delays. Persimmon currently has circa 10%
  more outlets open than at the same time last year.

• Long land bank of 57,222 plots representing a 4.7 year supply, together with
  over 20,000 acres of strategic land

• Excellent cash generation and strong balance sheet: Gearing down to 28% (2002:
  36%), despite significant investment in land

• Proposed full year dividend to increase by 21% to 18.3p per share (2002: 15.15p)
  as business has advanced ahead of expectations

* before goodwill amortisation of £10.8m

Duncan Davidson, Group Chairman said: 'We are delighted to report another set of
record full year results. Persimmon's profits have risen in every consecutive
half year period for the last nine years. Our profits for the six months to 31
December 2003 were in excess of £200 million. This is the first occasion on
which we have achieved this level of profitability in any six month period.

Looking ahead, the Group is in a very strong position to achieve further growth,
both organically and, where appropriate, by acquisition. Our sales for 2004 are
already at a record level of over 6,000 homes as at 27 February 2004, with a
value of circa £976 million. This is an increase in value of 32% over our sales
at the same date in 2003. This is the result of volume growth of over 1,000
units combined with further price improvements, which will continue to deliver
good margins. The future holds exciting prospects for Persimmon as one of the
largest house builders in the United Kingdom.'

For further information, please contact:
Duncan Davidson, Group Chairman                 Edward Orlebar/ Faeth Birch
John White, Group Chief Executive               Finsbury
Mike Killoran, Group Finance Director
Persimmon plc                                   Tel: [phone]
Tel: [phone] on 1 March 2004
Tel: [phone] thereafter

Print resolution images are available for media download at www.newscast.co.uk



CHAIRMAN'S STATEMENT

                           ANNUAL REPORT - MARCH 2004

During 2003 Persimmon continued the organic growth of the business, with net
pre-tax profits increased by 32% to £352.5 million (2002: £267.6 million).
Earnings per share rose by 30% to 86.8p, from 67.0p in 2002. (All figures are
stated before goodwill amortisation).

Our profits for the second half of 2003 were in excess of £200 million. This is
the first occasion on which we have achieved this level of profitability in any
six month period. Persimmon's profits have risen in every consecutive half-year
period for the last nine years. During the same period our annual profits have
increased from £22.8 million in 1995 to £352.5 million in 2003.

Turnover in 2003 was £1.88 billion, (2002: £1.71 billion), from the legal
completion of 12,163 homes (2002: 12,352 homes), a slightly lower level than the
prior year, as we anticipated. The average selling price of £154,810 (2002:
£138,530) represents a 12% rise over 2002. The higher level of profitability has
been achieved as a result of further improvement in operating margins, which
reached 20.3% (2002: 17.5%). At the same time our Return On Average Capital
Employed increased to 25.5% (2002: 22.0%).

Looking ahead, the Group is in a very strong position to achieve further growth,
both organically and, where appropriate, by acquisition. Currently, our number
of sales outlets has increased by circa 10% since this time last year. Our sales
for 2004 are already at a record level of over 6,000 homes as at 27 February
2004, with a value of circa £976 million. This is an increase in value of 32%
over our sales at the same date in 2003. This is the result of volume growth of
over 1,000 units combined with further price improvements, which will continue
to deliver good margins.

We continue to invest in a large number of excellent land opportunities. These
include smaller regional acquisitions like Merewood Homes acquired in June 2003,
and large tracts of land such as the recent 90 acre brownfield land purchase of
the former Massey Ferguson plant in Coventry. Our land bank with planning
consent has been extended and now totals 57,222 plots, together with over 20,000
acres of strategic development land being taken through the planning system. We
have been successful in progressing these potential development opportunities
through our strategic land portfolio, from which our land and planning teams
have achieved consents for a further circa 3,500 plots during 2003.

Despite these significant investments we have achieved a further reduction in
our gearing to 28%, with borrowings of £314 million at 31 December 2003. This is
our lowest level of debt since before the acquisition of the Beazer Group three
years ago. This low level of gearing gives Persimmon great flexibility to invest
in new opportunities as these occur. We believe that continuing to invest in the
business is a sound strategy for Persimmon's future, and whilst we have no
current intention of doing so, we retain the option of buying back our shares.

In my interim report on 26 August 2003 I referred to our policy on payment of
dividends to shareholders. At that time we committed to pay a total dividend for
2003 of not less than 17.4p per share, a 15% uplift over 2002. Since that date,
Persimmon's business has advanced ahead of expectations, and we are therefore
proposing to increase the full year dividend for 2003 by 21% to 18.3p per share
(2002: 15.15p per share), which is covered 4.5 times. We paid an interim
dividend of 7.0p per share in October 2003, and will recommend a final dividend
of 11.3 p, which will be payable on 23 April 2004 to shareholders on the
Register at 12 March 2004.

Persimmon has a very strong platform for further growth in sales volumes at good
margins in 2004 and beyond. As a larger house builder we will continue to
benefit from the many advantages of the size and scope of our business,
including the ability to tackle the highly complicated planning process, and our
strength in the procurement of materials for building operations.

Whilst interest rates may increase again this year, they are likely to remain at
historically low levels. For the majority of our purchasers, secure employment
is one of the most important factors when deciding to buy a new house, along
with the desire to live in a home which satisfies their requirements. Current
visitor levels demonstrate this continuing demand, reflected in a very strong
period of sales activity for Persimmon in the first eight weeks of 2004.

The continuing excellent progress of the Group is being achieved as a result of
the efforts and hard work of all of Persimmon's staff. I congratulate them upon
their continuing success. The future holds exciting prospects for Persimmon as
one of the largest house builders in the United Kingdom.

                                                          Duncan Davidson,
1st March 2004                                            Group Chairman.



CHIEF EXECUTIVE'S REVIEW

Overview

2003 has been an excellent year for Persimmon; our business is performing
extremely well both operationally and financially, as is amply demonstrated by
the record results we have announced today.

Since the acquisition of the Beazer Group three years ago we have transformed
the business into one of the UK's leading house builders with significantly
increased margins and sustained volumes. We are particularly pleased that during
2003 we increased Charles Church completions to c. 1,000 per year thereby
achieving another key objective we set ourselves at the time of acquisition.

We now have 32 operating businesses, 13 in the South Division, 12 in the North
Division and 7 at Charles Church. These Charles Church operations have been
fully integrated into our Group Divisional structure yielding further benefits.

The Divisions continue to be managed under the stewardship of Mike Farley in the
South and by John Millar in the North with the support of the regional
directors.

Despite being one of the largest house builders in the UK, the management
structure we have in place ensures that we are quick to respond to changes in
regional market conditions and land opportunities.

The benefits of scale are increasingly important as development of larger more
complex schemes, with their associated planning and technical problems become a
more regular source of development opportunities. In addition, we continue to
reap the rewards of our larger business in respect of procurement of building
materials.

These factors give us confidence in our ability to grow the business organically
and to sustain good margin levels.

We plan to move the business further forward by growing all of our existing
housing businesses to optimum size of operation whilst continuing to roll out
the Charles Church businesses into other regional markets in the UK.

North Division

During the year we completed 5,295 homes, a 3% increase on 2002 (5,138). Average
selling prices moved forward to £129,328 (2002: £109,445), an 18% increase,
which reflects both good price growth in the region and the changing product
mix. The North division land bank has been increased further to 24,251 plots
(2002: 23,108 plots), representing a 41/2 year supply at current levels.

Due to a strong volume performance in our North East business and the success of
the Newcastle Great Park development we opened a new Teesside business on 1st
January 2004 to facilitate further growth in the region.

South Division

The South division completed 5,878 units during 2003, which as anticipated, was
a decline on the prior year's output of 6,395 units. The reduction was a direct
result of planning delays, which restricted our ability to open new outlets.
Sales rates per site remained at excellent levels. In the second half of the
year we opened a good mix of new outlets and we are currently operating on 12%
more sites in the South than at the same time last year and we anticipate
reporting good volume growth for 2004. Average selling prices rose by 12% to
£164,531 (2002: £146,379).

We have been successful in replacing our land bank at competitive prices and
currently have 28,863 plots (2002: 27,765 plots) owned and under control. In
addition we have c. 14,000 acres of high quality strategic land, including
significant holdings in areas of known housing shortages.

Charles Church

Charles Church is now operating from seven offices throughout England and we
have two further office openings planned, one in the North West of England and
one in Scotland. The rollout of Charles Church in the North has been highly
successful; the brand recognition is strong and the demand for the high quality
homes for which Charles Church is famous, has been very pleasing.

Legal completions for the year were 990 (2002: 819), a significant increase on
the prior year with great scope for further growth in the current year and
beyond. As we introduced new Charles Church apartments to the range and sold
more homes in the north of the country, the average selling price reduced, as
anticipated, by 10% to £233,381 (2002: £259,711). This change of mix will be
less pronounced in the future. The current average selling price for Charles
Church is £247,000. The Charles Church land bank has grown during the year to
4,108 plots owned and under control (2002: 2,316 plots) in line with our growth
plans for this business.

One of the additional benefits of Charles Church is that we have been able to
introduce this product on large sites to provide a complete range of choice for
our customers. This also enables the Group to develop these larger sites more
quickly as well as adding value by increasing revenues. We plan an increase of
this concept over future years as we move forward.

Land bank

Whilst we have continued to buy land throughout 2003 at keen prices, we were
more active in the land market during the first six months of 2003 when we
identified some excellent opportunities.

At 31st December 2003 our land bank stood at 57,222 plots owned and under
control representing a 4.7 year supply and an overall increase in plot count of
4,033 plots (2002: 53,189).

The plot cost to selling price ratio is c. 20% of current selling price,
demonstrating once again our ability to replace our land at good prices.

In addition our strategic land bank has increased to c. 20,500 acres in good
locations across all areas of the UK. We continue to be successful at achieving
planning permission from this strategic land portfolio. During the year, we
brought forward a further c. 3,500 plots to the owned and controlled land bank
with particular successes in the South at Stansted and at Cannock, and at
Gateshead in the North.

Current Trading Outlook

The market remains buoyant and the demand for good product in the right
locations is robust. There are no signs of any slowdown in this demand.

Average selling prices of our total sales for the current year as at 27th
February 2004 are ahead by c. 4% over the full year of 2003. There are, as
always, regional variations in demand and pricing patterns with some markets
stronger than others. Our profits and earnings have increased every year since
1995 and I attribute this consistency partly to our broad geographic spread
which means that we are never over-exposed to one region. We also benefit from
our long land bank, which provides us with great visibility and flexibility and
enables our management to ensure that we replace our land at acceptable prices.

We are currently selling from c. 10% more outlets than at the same time last
year and we expect to be able to maintain this momentum throughout the remainder
of the year.

Environment and Innovation

Whilst we are steadfast in our determination to focus on our core business of
house building, and the good basic disciplines involved, we recognise the
benefits to be gained by employing new techniques in the industry. We are
increasing our usage of off-site manufacturing where appropriate, and during the
year completed over 1,600 steel or timber frame homes. We have also trialled the
increased use of factory finished products, a trend which we expect to continue.

At the same time we are redoubling our efforts to improve our environmental
performance and during the year we have continued to trial new initiatives
including the use of photovoltaic roof tiles, sustainable urban drainage systems
and improvements in energy ratings of the homes we build.

Staff and Training

Our graduate training scheme continues to benefit both our business and the
individuals concerned. Our investment in graduates is growing with further
increased intakes planned this year.

In addition we have recently commenced a new recruitment drive aimed at
attracting early school leavers seeking a career involving technical and
surveying skills.

The house building industry has in the past failed, for a variety of reasons, to
attract new talent into the trade. I am pleased therefore that Persimmon has
this year increased the number of apprentices it employs by 50% to c. 340 and
initiated new recruitment schemes in local schools to attract new entrants into
the industry. We also encourage all our contractors to adopt our approach to
training wherever possible.

We believe that awareness of the benefits and attractions of a career in our
industry is increasing rapidly. Persimmon is determined to respond to this
change in sentiment and to play its part in training the future managers in our
Company and the industry at large.

We are also continuing to invest in our existing staff development and are
committed to developing our talent from within. The average length of service of
our salaried employees at Persimmon is 51/2 years whilst our 10 regional board
directors have an average of 22 years house building experience. This
demonstrates the strength and depth of experience we have in our business.

Customers

We have continued to apply considerable management time, training and financial
investment in customer care.

As recognised in the recent National Customer Satisfaction Survey by The Housing
Forum, new home buyer's expectations continue to increase as the industry
improves its quality and product.

At Persimmon we are committed to work tirelessly to ensure we match these
increasing expectations.

We have been very pleased with the introduction of the Council of Mortgage
Lenders procedures for handover and have worked closely with the NHBC to ensure
satisfactory implementation throughout 2003.

We expect to report further progress in our customer care procedures and service
as the results of these increased disciplines, and the significant investment we
have made, bear fruit.

Health & Safety

Ensuring the health and safety of our employees, sub contractors, visitors to
our sites and the general public continues to be of the utmost importance to
Persimmon.

Over the past year we have maintained an ongoing training programme for all
levels of employee, helped to raise the health and safety awareness of our
contractors through extensive support of the Health and Safety Executives
Working Well Together Campaign initiative and undertaken regular audit,
inspection and review of all management and operational activities to ensure
continual improvement in our health and safety performance.

Summary

The fundamentals of the house building industry are good and remain underpinned
by the undersupply of new homes in this country over the last decade. In her
recent interim review, Kate Barker identified issues which impact on the
shortage of new housing and we await with interest any proposals the Government
may seek to introduce to redress the balance. Persimmon is particularly well
placed to respond to any changes and to react to the opportunity, should the
industry be permitted to build more homes. We have a long, well bought land
bank, sound finances and the operational and management capacity to manage more
volume without increasing our cost base. Our broad geographical spread, product
offer and scale brings resilience to our operations and returns.

Once again our staff have responded magnificently to the challenges presented
and have achieved another most excellent set of results. The business has never
been in better shape and I have every confidence in our prospects for this year
and beyond.

                                                          John White,
1st March 2004                                            Group Chief Executive.



Consolidated Profit and Loss account for the year ended 31 December 2003

--------------------------------------------------------------------------------
                                                        Year to 31  Year to 31
                                                          December    December
                                                              2003        2002
                                                   Note         £m          £m
--------------------------------------------------------------------------------
Turnover                                                   1,883.0     1,711.1

Cost of sales                                             (1,423.6)   (1,345.9)
--------------------------------------------------------------------------------
Gross profit                                                 459.4       365.2

Net operating expenses                                       (88.5)      (76.2)
--------------------------------------------------------------------------------
Operating profit before goodwill amortisation                381.7       299.8

Goodwill amortisation                                        (10.8)      (10.8)
--------------------------------------------------------------------------------
Operating profit                                             370.9       289.0

Net interest payable and similar charges                     (29.2)      (32.2)
--------------------------------------------------------------------------------
Profit on ordinary activities before taxation                341.7       256.8

Tax on ordinary activities                           5      (107.5)      (80.3)
--------------------------------------------------------------------------------
Profit for the financial year                                234.2       176.5

Dividends                                                    (51.9)      (42.4)
--------------------------------------------------------------------------------
Retained profit                                              182.3       134.1
--------------------------------------------------------------------------------
Basic earnings per share                             6
Before goodwill                                               86.8p       67.0p
After goodwill                                                83.0p       63.1p

Diluted earnings per share                           6
Before goodwill                                               86.0p       66.3p
After goodwill                                                82.2p       62.5p

Dividend per share                                           18.30p      15.15p
--------------------------------------------------------------------------------

No separate statement of total recognised gains and losses has been prepared as
the Group has no recognised gains or losses other than the profit for the year
as stated above.

There is no material difference between the profit on ordinary activities before
taxation and the retained profit for the year stated above, and their historic
cost equivalents.

The results of the Group relate entirely to continuing operations.



Consolidated Balance Sheet at 31 December 2003

--------------------------------------------------------------------------------
                                                    31 December    31 December
                                                           2003           2002
                                            Note             £m             £m
--------------------------------------------------------------------------------
Fixed assets
Tangible assets                                            24.1           23.5
Intangible assets                                         182.0          192.8
--------------------------------------------------------------------------------
                                                          206.1          216.3
--------------------------------------------------------------------------------
Current assets
Stocks and work in progress                             1,661.2        1,433.4
Debtors                                                   112.4          112.0
Cash at bank and in hand                       3            0.8            9.8
--------------------------------------------------------------------------------
                                                        1,774.4        1,555.2
--------------------------------------------------------------------------------
Creditors due within one year
Borrowings                                     3          (19.7)         (24.9)
Other creditors                                          (498.8)        (458.6)
--------------------------------------------------------------------------------
                                                         (518.5)        (483.5)
--------------------------------------------------------------------------------
Net current assets                                      1,255.9        1,071.7
--------------------------------------------------------------------------------
Total assets less current liabilities                   1,462.0        1,288.0
--------------------------------------------------------------------------------

Creditors due after more than one year
Borrowings                                     3         (295.6)        (322.2)
Other creditors                                           (34.8)         (28.8)
--------------------------------------------------------------------------------
                                                         (330.4)        (351.0)
--------------------------------------------------------------------------------
Net assets                                              1,131.6          937.0
--------------------------------------------------------------------------------

Capital and reserves
Called up share capital                                    28.4           28.0
Share premium account                                     214.2          210.4
Merger reserve                                            281.4          281.4
Revaluation reserve                                         1.2            1.2
Profit and loss account                                   606.4          416.0
--------------------------------------------------------------------------------
Equity shareholders' funds                              1,131.6          937.0
--------------------------------------------------------------------------------
Net assets per share                                      398.7p         334.6p
--------------------------------------------------------------------------------


Consolidated Cash Flow Statement for the year ended 31 December 2003

--------------------------------------------------------------------------------
                                                        Year to        Year to
                                                    31 December    31 December
                                                           2003           2002
                                             Note            £m             £m
--------------------------------------------------------------------------------
Net cash inflow from operating                 2          243.6          287.1
activities 
--------------------------------------------------------------------------------
Return on investments and servicing of
finance
Interest received                                           1.1            0.4
Interest paid                                             (30.6)         (33.2)
Interest paid on finance leases                            (0.2)          (0.3)
--------------------------------------------------------------------------------
                                                          (29.7)         (33.1)
--------------------------------------------------------------------------------
Taxation
UK corporation tax paid                                   (89.8)         (56.9)
--------------------------------------------------------------------------------
Capital expenditure
Purchase of tangible fixed assets                          (7.1)          (9.7)
Sale of tangible fixed assets                               2.9            6.6
--------------------------------------------------------------------------------
                                                           (4.2)          (3.1)
--------------------------------------------------------------------------------
Acquisitions and disposals
Acquisition of businesses and                  7          (48.1)          (1.6)
subsidiaries
Net borrowings acquired with                               (9.1)             -
subsidiaries 
--------------------------------------------------------------------------------
                                                          (57.2)          (1.6)
--------------------------------------------------------------------------------
Equity dividends paid                                     (41.9)         (34.8)
--------------------------------------------------------------------------------
Net cash inflow before financing                           20.8          157.6
--------------------------------------------------------------------------------
Financing
Repayment of bank loans                                   (32.9)        (127.9)
Exercise of share options                                   3.5            3.4
Repayment of principal under finance                       (1.5)          (1.9)
leases
--------------------------------------------------------------------------------
Net cash outflow from financing                           (30.9)        (126.4)
--------------------------------------------------------------------------------
(Decrease)/increase in cash                  3,4          (10.1)          31.2
--------------------------------------------------------------------------------


Notes

 1.  Accounting policies

     The financial information has been prepared on the basis of the accounting
     policies set out in the financial statements for the year ended 31 December
     2002. The continued transitional disclosure requirements of FRS 17:
     Retirement Benefits are set out in more detail in note 8.

 2.  Reconciliation of operating profit to net cash inflow from operating
     activities

--------------------------------------------------------------------------------
                                                  Year to              Year to
                                              31 December          31 December
                                                     2003                 2002
                                                       £m                   £m
--------------------------------------------------------------------------------
Operating profit                                    370.9                289.0
Depreciation charge                                   6.5                  6.4
Amortisation of goodwill                             10.8                 10.8
Profit on sale of tangible fixed assets              (0.2)                (0.2)
LTIP charge                                           1.7                  1.5
Increase in stocks and work in progress and        (159.1)               (80.4)
BES assets
(Increase)/decrease in debtors                       (5.8)                 7.2
Increase in creditors                                18.8                 52.8
--------------------------------------------------------------------------------
Net cash inflow from operating activities           243.6                287.1
--------------------------------------------------------------------------------

 3.  Analysis of net debt

--------------------------------------------------------------------------------
                                                        Other non-cash
                                                             changes
                                    2003    Cash flow             £m      2002
                                      £m           £m                       £m
--------------------------------------------------------------------------------
Net cash:
Cash at bank and in hand             0.8         (9.0)             -       9.8
Bank overdrafts                    (18.1)        (1.1)             -     (17.0)
--------------------------------------------------------------------------------
Net cash per cash flow             (17.3)       (10.1)             -      (7.2)
statement:
--------------------------------------------------------------------------------
Debt and lease financing:
Bank loans                         (15.0)        25.0              -     (40.0)
US & UK senior loan notes         (282.2)         7.9              -    (290.1)
Finance leases                      (2.4)         1.5           (1.8)     (2.1)
--------------------------------------------------------------------------------
Debt and lease financing          (299.6)        34.4           (1.8)   (332.2)
--------------------------------------------------------------------------------
Net debt                          (316.9)        24.3           (1.8)   (339.4)
--------------------------------------------------------------------------------

Analysed as:
Cash at bank and in hand             0.8                                   9.8
Borrowings due within one          (19.7)                                (24.9)
year
Borrowings due after more than    (295.6)                               (322.2)
one year
Finance leases                      (2.4)                                 (2.1)
--------------------------------------------------------------------------------
Net debt                          (316.9)                               (339.4)
--------------------------------------------------------------------------------

 4.  Reconciliation of net cash flow to net debt

--------------------------------------------------------------------------------
                                                  2003                    2002
                                                    £m                      £m
--------------------------------------------------------------------------------
(Decrease)/increase in cash in the year          (10.1)                   31.2
Decrease in debt and lease finance                34.4                   129.8
--------------------------------------------------------------------------------
Decrease in net debt from cash flows              24.3                   161.0
New finance leases                                (1.8)                   (1.0)
--------------------------------------------------------------------------------
Decrease in net debt in the year                  22.5                   160.0
Net debt at 1 January                           (339.4)                 (499.4)
--------------------------------------------------------------------------------
Net debt at 31 December                         (316.9)                 (339.4)
--------------------------------------------------------------------------------

 5.  Taxation

     Taxation has been calculated at an effective rate of 30.5% of profit on
     ordinary activities before taxation and goodwill amortisation (2002:
     30.0%).

 6.  Earnings per share

     The calculation of basic earnings per share after goodwill is based on
     earnings after taxation of £234.2m (2002: £176.5m) and 282,113,458 ordinary
     shares (2002: 279,662,777) being the weighted average number of ordinary
     shares in issue during the period.

     Diluted earnings per share after goodwill is calculated by dividing
     earnings after taxation by the weighted average number of ordinary shares
     in issue for the period, adjusted for the dilutive effect of shares held
     under unexercised options and awards granted to directors and employees.
     The weighted average number of ordinary shares so calculated is 284,785,791
     (2002: 282,511,605).

     The calculations of basic and diluted earnings per share before goodwill
     are based on earnings after taxation of £245.0m (2002: £187.3m).

 7.  Acquisitions

     During the year, the Group acquired the entire issued share capital of
     Merewood Group Limited, D Dunk (Builders) Limited, Gomersal Mills Limited,
     Springfir Holdings Limited and Springfir Estates Limited, in separate
     transactions, for aggregate cash consideration of £48.1m.

     Management considers these transactions to be primarily land purchases, the
     fair value of the acquired assets and liabilities being £48.1m.
     Consequently there is no goodwill arising on any of these transactions.

 8.  Pension and life assurance scheme

     In November 2000 the Accounting Standards Board ('ASB') issued FRS 17
     'Retirement Benefits' replacing SSAP 24 'Accounting for Pension Costs'.
     FRS 17 was initially due to become fully effective for periods ending on
     or after 22 June 2003. However, in November 2002 the ASB issued an
     amendment to FRS 17 extending the transitional arrangements and therefore
     deferring the mandatory requirement for its full adoption. The requirements 
     of FRS 17 as amended will now become mandatory for accounting
     periods beginning on or after 1 January 2005

     The relevant transitional rules have again been adopted for 2003, with no
     effect on the group's results other than extensive disclosure requirements
     regarding defined benefit pension schemes. In summary, calculation of the
     illustrative balance sheet figures using the required valuation
     assumptions results in a market value of scheme assets of £120.2m and a
     present value of scheme liabilities of £174.5m. Net of the deferred tax
     asset of £16.3m, the deficit is £38.0m (2002: £39.5m deficit).

 9.  Final dividend

     It is proposed to pay a final dividend of 11.3p per share on 23 April 2004
     to shareholders on the register at the close of business on 12 March
     2004.

 10. The financial information set out above does not constitute the Company's
     statutory accounts for the years ended 31 December 2003 or 2002 but is
     derived from those accounts. Statutory accounts for the year ended 31
     December 2002 have been delivered to the Registrar of Companies, and those
     for the year ended 31 December 2003 will be delivered following the      
     company's annual general meeting. The auditors have reported on those
     accounts; their reports were unqualified and did not contain statements
     under section 237(2) or (3) of the Companies Act 1985.

     The annual report will be posted to shareholders on Monday 22 March 2004.
     Copies of the annual report will also be available from the Company
     Secretary, Persimmon plc, Persimmon House, Fulford, York, YO19 4FE.

Further information on the Group can be found on the Persimmon website at:

www.persimmonhomes.com


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