Final Results

Persimmon PLC
27 February 2006




27 February 2006


                  RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005

Highlights

• Record pre-tax profits*: up 5.9% on 2004 at £495.4 million (2004: £468.0 million).

• Increase in basic earnings per share* to 118.4p (2004: 113.5p).

• Proposed full year dividend to increase by 12.7% to 31p per share (2004: 27.5p).

• Maintained full year operating margin* at similar levels to 2004 at 23.1% (2004: 23.4%).

• Completed the sale of 12,636 homes (2004: 12,360), producing turnover of £2.29 billion 
  (2004: £2.13 billion). Group average selling price advanced to £180,892 (2004: £172,431).

• Continued growth at Charles Church: increased volumes by 18.3% to 1,286 (2004: 1,087)
  and average selling price rose by 11.2% to £283,260 (2004: £254,810).

• £643 million acquisition of Westbury plc completed on 17 January 2006.

• Gearing of 16% after acquiring 26.1% of the shares of Westbury plc for £169 million
  in the stock market on 24 November 2005.

• New divisional structure to ensure successful management of enlarged business
  at local level. Persimmon now has three regions: Central, North and South.

• Total sales for 2006 to date are over 7,000 units at c. £1.25 billion (this
  includes an initial contribution from Westbury).

*results have been prepared in accordance with International Financial Reporting
 Standards.

Duncan Davidson, Group Chairman said: '2005 was another record year for
Persimmon. It was also hugely significant for the Group, with the announcement
in November 2005 of our £643 million successful offer for Westbury plc. I am
pleased to report that the initial stages of integration have been completed to
plan. Looking forward, we have seen a good start to 2006 with good forward sales
in most areas. Current visitor levels to our developments across the UK are
encouraging.

'As announced last year, John White will take over my position as Group Chairman
at the AGM on 20 April 2006, and Mike Farley will become Chief Executive. I am
proud to have led Persimmon for 34 years, and know that the growth and success
of the Group will continue unabated thanks to the efforts of all our staff.'

For further information, please contact:

Duncan Davidson, Group Chairman                    Edward Orlebar
John White, Group Chief Executive                  Faeth Birch
Mike Killoran, Group Finance Director              Kirsty Flockhart
Persimmon plc                                      Finsbury
Tel: [phone] on 27 February 2006      Tel: [phone]
Tel: [phone] thereafter

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


                              CHAIRMAN'S STATEMENT
                          ANNUAL REPORT - FEBRUARY 2006

2005 was another record year for Persimmon, with net pre-tax profits of £495.4
million (2004: £468.0 million). Basic earnings per share increased to 118.4p (2004: 113.5p).

These figures are the first full year results which have been prepared in accordance
with International Financial Reporting Standards ('IFRSs'), which were effective at
31 December 2005.

When we published our restatement of financial information for 2004 under IFRSs
on 24 May 2005 we demonstrated that the transition from UK Generally Accepted
Accounting Principles ('UK GAAP') did not have a material effect on our financial 
results. This remains the case for 2005; for example, profit before tax and goodwill
amortisation on a UK GAAP basis for 2005 was £499.5 million (2004: £470.4 million).

The year was hugely significant for the Group, with the announcement in November
2005 of our £643 million successful offer for Westbury plc. This acquisition was
completed on 17 January 2006. Since then we have been implementing our
integration plans for that business. I am pleased to report that this process
has proceeded extremely well and the initial stages of integration have been
completed to plan. The acquisition is an ideal fit for Persimmon with an
excellent geographic overlap which creates an enlarged business building c.
16,700 homes per annum.

We also purchased the net assets of Senator Homes, a small business in Cumbria,
for £25 million (including borrowings) on 13 December 2005. This has enlarged
our Lancashire operation and has already been fully integrated into Persimmon.

As a result of the progress the Group has made, Persimmon entered the FTSE 100
in December, being the first pure housebuilder ever to do so.

In 2005 we completed the sale of 12,636 (2004: 12,360) homes at an average
selling price of £180,892 (2004: 172,431) an increase of 5%, giving a turnover
of £2.29 billion (2004: £2.13 billion). Despite more challenging conditions
throughout 2005, we were able to maintain operating margins at similar levels to
the prior year at 23.1% (2004: 23.4%). We increased operating profits to £527.8 million
(2004: £498.0 million).

Turning to our cash position, net borrowings at 31 December 2005 were £266 million,
giving gearing of 16%. This was after paying £25 million for Senator Homes, and 
£169 million for the 26.1% of Westbury plc which we bought in the stockmarket on 
24 November 2005, the day of the announcement of the recommended offer.

In my Interim Statement on 23 August 2005 we committed to pay total dividends
for 2005 of not less than 30.4 pence per share (2004: 27.5 pence). We are in
fact now proposing total dividends for 2005 of 31 pence per share, representing
an increase of 12.7% over dividends paid in 2004. We paid an interim dividend of
12 pence per share in October 2005, and will recommend a final dividend of 19
pence per share, which will be payable on 21 April 2006 to shareholders on the
Register on 10 March 2006. As before, we are offering a scrip dividend
alternative.

We continued to be very selective about our land purchases throughout the year.
Our landbank of consented plots owned and under control at the year end was
63,336 plots. Since the acquisition of Westbury this has increased to c. 78,000
plots providing a land supply of over 41/2 years. This length of landbank is
essential for a business of our scale given the continuing difficulties and
challenges to be addressed in achieving satisfactory detailed planning consents
throughout the UK.

We have seen a good start to 2006 with good forward sales in most areas. On 26 February
our total sales to date for the current year are over 7,000 units at c. £1.25 billion
sales revenue. This includes an initial contribution from Westbury. Current visitor
levels to our developments across the UK are encouraging.

On 20 April 2006 John Millar, Sir Chips Keswick and myself will all retire from the 
Main Board. I am honoured to have been invited to become Life President of Persimmon.
I would like to thank John and Chips very sincerely for the incredible contribution
which they have both made to Persimmon's success over the last 20 years.

As announced last year, John White will take over my position as Group Chairman,
and Mike Farley will become Chief Executive. Both John and Mike have been
exceedingly successful in their long careers with Persimmon. I know that they
will both continue that success in their new roles.

I am also delighted to welcome to the Main Board of Persimmon Adam Applegarth,
Chief Executive of Northern Rock plc, and Nicholas Wrigley, a Managing Director
of N.M. Rothschild, as Non-Executive Directors. The wealth of experience which
they both have will bring added strength to our Board for the future.

I am proud to have led Persimmon for 34 years, and our success over all those
years has been achieved by the fantastic efforts of every member of our Staff at
all levels. In the period since April 1985, when Persimmon became a listed
company, we have built c. 120,000 homes. During this time we have achieved
growth in total shareholder return of over 25% on a compound annual basis and
have increased the Group's market capitalisation from £14 million to over £4
billion. I know that the growth and success of Persimmon will continue unabated,
thanks to their efforts. I thank them all and wish every one of them all the
very best for the future.


Duncan Davidson
Chairman
27 February 2006


                            CHIEF EXECUTIVE'S REVIEW

Overview

It gives me great pleasure in my final Chief Executive's Review before I become
Chairman to be able to report on another record set of results for Persimmon.
This is especially so, because as commented upon widely, 2005 was a most
challenging year for the industry.

During the year the market was characterised by uncertainty and a general lack
of confidence amongst potential purchasers due to concerns over house price
stability.

At Persimmon, we were able to respond to these more demanding conditions in a
number of ways. We started 2005 with a good forward order book despite a
relatively quiet autumn period in 2004. We had ensured that we had increased
outlets for marketing during the early months of 2005 and continued to focus on
forward selling ahead of construction on all our sites during this important
sales period.

We also ensured that, through our local teams, we remained flexible with the
type, specification and price range of homes we were offering to the market.
Through this process we experienced a greater demand in some areas for lower
priced properties in preference to some of our mid price range homes, which in
some regions, resulted in an increase in volumes at a reduced average selling
price.

Core housing completions were 11,350 (2004: 11,273) and Charles Church
completions for the year were 1,286 (2004: 1,087) giving total completions for
the Group of 12,636 (2004: 12,360). The Group's average selling price increase
of 5% reflects these changes of mix as well as some real price growth. In
summary, we believe we demonstrated our resilience in tougher market conditions.

North

This division completed 4,962 units, slightly down on 2004, offset by a 5%
increase in average selling price to £162,737 from £154,287. Whilst the
strongest region during 2005 was Scotland, the performance of all regions in the
North division was satisfactory.

Our focus on maintaining a good spread of product across the mid to lower end of
the range has once again stood us in good stead. Whilst the market was
undoubtedly tougher in the north the relatively low level of average selling
price has ensured that we have performed well.

South

The South division performed well once again increasing the number of
completions to 6,388 from 6,187 in 2004. Average selling price increased by only
1% during 2005. This was partly due to a shift to more smaller homes as we
responded to local market requirements. Our Western region for example, which
covers South Wales and the South West of England, performed particularly well
with increased completions of 15% to 2,503 (2004: 2,183) at a reduced average
selling price of £178,988 (2004: £183,768). This was achieved by ensuring that
the appropriate product mix was available to the market.

Charles Church

This brand continued to increase its coverage of the UK. The investments we have
made both in management time and financial commitment have established a strong
platform for growth. During 2005 we increased volumes by 18% to 1,286 homes
(2004: 1,087). Average selling price also increased by 11% to £283,260 (2004: £254,810).
There are many sites in the Westbury portfolio that are particularly well suited to the 
Charles Church product, which will result in a step change in the volumes achieved in 
this business over the next few years.

Build

Once again we experienced an increase in our build costs in all areas of our
business. Whilst we originally expected significant pressure on material costs,
in the event we were able to keep these increases to a minimum. Pressure on
labour price increases were also resisted reasonably well. Undoubtedly our scale
of business and the continuity we are able to offer to our preferred suppliers
and contractors is an advantage in this respect. As a result total build cost
increases were similar to the previous year at c. 4%.

Landbank

Whilst we continued to exercise discipline and caution regarding the replacement
of our landbank, we were able to increase the number of plots owned and under
control to 63,336 plots (2004: 59,947 plots) including c. 800 plots from the
Senator Homes purchase. Our plot cost to selling price ratio is 19.3% (2004: 19.1%).

Additionally we had c. 19,000 acres of strategic land owned or under option.
This portfolio continues to successfully deliver c. 25% of the new plots we
acquire each year. This year was no exception with specific successes in
Yorkshire (1,200 plots), at Bracknell (750 plots), Bridgwater (750 plots) and
Peterborough (1,150 plots). We continue to invest in this aspect of our business
and are confident that it will be a source of further significant successes in
the short, medium and long term.

Following the acquisition of Westbury we now have over 78,000 plots owned and
under control in the enlarged Group, representing c. 41/2 years supply, in
addition to a total of c. 25,000 acres in our strategic land portfolio. The
Westbury strategic land portfolio of c. 6,000 acres has many interesting and
exciting opportunities to develop over future years.

Westbury Integration

As referred to in the Chairman's Statement, we have successfully completed the
initial stages of the integration of Westbury.

All acquired sites were rebranded immediately to either Persimmon or Charles
Church. This was an important factor in establishing the appropriate background
for the enlarged Group which will ensure the ongoing successful integration of
the acquired business.

In the five weeks we have owned the business we have closed eight of the ten
Westbury offices. We have also consulted fully with all affected office based
staff resulting in c. 500 leaving the Company. We have retained the appropriate
number of high quality senior managers and office staff, whilst at site level
there have been no significant staffing changes. We are currently reviewing site
layouts, designs, mix of product and specifications in order to maximise the
development potential on all the acquired developments.

Our task is also to ensure that build costs are improved on the Westbury sites
by capturing improved procurement and sub-contractor costs. This process is at
an early stage due to the phasing of construction works, but is already
producing success.

All these efforts will ensure we maximise the synergy benefits on integrating
Westbury into the enlarged Group which we believe will be c. £25 million in 2006
and c. £40 million in each year from 2007 onwards. We estimate that we will
incur one-off costs of integration of c. £12 million in achieving our plans at
this stage.

We have maintained the Westbury Partnerships brand to provide a focus on working
with the Government in its efforts to increase the supply of affordable homes.
We have set up a small specialist and dedicated team at the Westbury
Partnerships office in Gloucester to drive this business forward over future
years.

The Space4 manufacturing business represents a good opportunity to work more
closely with Westbury Partnerships and the Government's agenda regarding Modern
Methods of Construction. We believe that given the volume of homes produced by
the enlarged Persimmon Group and by working closely with specialist Westbury
Partnerships we can begin to make good progress with Space4.

The only other ex-Westbury office to remain open is in South Wales which becomes
the new Charles Church Wales office. This brings the total number of Charles
Church businesses to ten.

In order to ensure the successful management of the enlarged business, which we
expect to deliver c. 17,000 units per annum after 2006, we have restructured our
Divisional Management to create an additional 'Central' region. We have
increased our divisions from two to three, namely Central, North and South. We
now have the management in place to deliver further growth as and when the
market conditions are supportive.

David Thornton aged 48, who until recently was Deputy Chief Executive for the
South Division working closely with Mike Farley, is now Divisional Chief
Executive for the Central Division. David has had a number of roles with
Persimmon in his 14 years with the Group. The North is led by Jeff Fairburn aged
39, previously Managing Director and Regional Chairman of the North East with 16
years experience with Persimmon. The new South Division will be under the
leadership of Nigel Greenaway aged 45. Nigel has recently been a Managing
Director and Regional Chairman for Persimmon in South Midlands and has 19 years
experience with the Group.

This management structure will ensure that we continue to drive the enlarged
business forward, whilst maintaining our ability and focus on quick decision
making at local levels.

Current Trading Outlook

In the eight weeks since the beginning of this year we have detected an increase
in purchasers' confidence and the ability and desire to buy a new home.

Visitor levels have been good and new reservations have been encouraging. Whilst
it is too early in the New Year to predict the market, it is nevertheless a good
start to the year.

We are continuing to be realistic about price expectations to ensure
satisfactory levels of sales are achieved. Our part-exchange scheme continues to
support sales whilst we have seen a reduction in the use of incentives in some
areas.

Our current total sales at over 7,000 homes with a value of c. £1.25 billion at
an average selling price of £178,500 are at a level we would expect and gives us
confidence for the year as we enter the start of the most important sales period
for new homes. We expect to open over 300 new developments during 2006 which
will provide good support to our sales activity throughout the year.

Corporate Responsibility

We have made good progress with regard to matters concerning our Corporate
responsibility. Improvements have been made in all areas, especially in training
of our staff, environmental issues and health and safety.

The Group continues to support the development of new talent in the industry and
this year we were awarded 'Best Training and Staff Initiative' at the
HouseBuilding Innovation Awards, recognising our commitment to training at
apprentice, school leaver and graduate level.

Our Corporate Responsibility Report, which gives more details on all these
issues within our business, can be viewed on our website, www.persimmonhomes.com.

Summary

We are pleased to have achieved such a strong result for the Group for 2005.
However, our efforts and focus are now very much concentrated on looking
forward, successfully integrating the Westbury acquisition and continuing to
achieve further success.

We have an experienced team, great landbank, proven track record and a
commitment to succeed. We also have a strong sales position, the appropriate
level of investment in land and work in progress in all parts of the UK and
great benefits of scale which we can utilise to support our margins. We are
therefore in an excellent position for the future.

I am certain that the commitment we have amongst our staff at all levels, both
new and long-serving, will ensure that we continue to achieve the best possible
results whatever market conditions we encounter over future years.

I know that Mike Farley, who becomes Group Chief Executive following the AGM on
20 April 2006, and our team will continue to grow the business with great success.

John White
Group Chief Executive
27 February 2006



PERSIMMON PLC

Consolidated Income Statement for the year ended 31 December 2005

-------------------------------------------------------------------------------
                                                           Year to     Year to
                                                       31 December 31 December
                                                 Note         2005        2004
                                                                £m          £m
-------------------------------------------------------------------------------
Revenue                                                    2,285.7     2,131.3

Cost of sales                                             (1,681.4)   (1,549.4)
-------------------------------------------------------------------------------
Gross profit                                                 604.3       581.9

Operating expenses                                           (76.5)      (83.9)
-------------------------------------------------------------------------------
Profit from operations                                       527.8       498.0

Finance income                                                 0.8         0.6
Finance costs                                                (33.2)      (30.6)
-------------------------------------------------------------------------------
Profit before tax                                            495.4       468.0

Income tax expense                                 4        (150.6)     (143.7)
-------------------------------------------------------------------------------
Profit after tax (all attributable to equity                 344.8       324.3
holders of the parent)
-------------------------------------------------------------------------------
Earnings per share
Basic                                              6        118.4p      113.5p
Diluted                                            6        118.0p      112.8p



Consolidated Balance Sheet at 31 December 2005

-------------------------------------------------------------------------------
                                                     31 December   31 December
                                              Note          2005          2004
                                                              £m            £m
-------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets                                          182.0         182.0
Property, plant and equipment                               32.5          28.2
Investments                                                169.1             -
Deferred tax assets                                         33.3          22.4
-------------------------------------------------------------------------------
                                                           416.9         232.6
-------------------------------------------------------------------------------
Current assets
Inventories                                              2,197.9       1,992.8
Trade and other receivables                                107.2          98.7
Cash and cash equivalents                        3          10.7          84.6
-------------------------------------------------------------------------------
                                                         2,315.8       2,176.1
-------------------------------------------------------------------------------
Total assets                                             2,732.7       2,408.7
-------------------------------------------------------------------------------

LIABILITIES
Non-current liabilities
Interest bearing loans and                       3        (233.6)       (223.7)
borrowings
Forward currency swaps                           3         (19.5)        (35.2)
Deferred tax liabilities                                    (8.3)         (2.2)
Retirement benefit obligation                              (73.5)        (66.3)
Other liabilities                                          (61.5)        (61.1)
-------------------------------------------------------------------------------
                                                          (396.4)       (388.5)
-------------------------------------------------------------------------------

Current liabilities
Trade and other payables                                  (529.4)       (511.5)
Current tax liabilities                                    (89.1)        (81.2)
Forward currency swaps                           3          (1.4)         (2.2)
Interest bearing loans and borrowings            3         (24.4)        (19.7)
-------------------------------------------------------------------------------
                                                          (644.3)       (614.6)
-------------------------------------------------------------------------------
Total liabilities                                       (1,040.7)     (1,003.1)
-------------------------------------------------------------------------------
Net assets                                               1,692.0       1,405.6
-------------------------------------------------------------------------------

SHAREHOLDERS' EQUITY
Ordinary share capital issued                               29.5          28.9
Share premium                                              229.2         221.2
Own shares                                                  (4.1)         (3.2)
Hedge reserve                                                0.6           5.2
Consolidation reserve                                      281.4         281.4
Retained earnings                                        1,155.4         872.1
-------------------------------------------------------------------------------
Total shareholders' equity                               1,692.0       1,405.6
-------------------------------------------------------------------------------



Consolidated Cash Flow Statement for the year ended 31 December 2005

-------------------------------------------------------------------------------
                                                          Year to     Year to
                                                      31 December 31 December
                                               Note          2005        2004
                                                               £m          £m
-------------------------------------------------------------------------------
Cash flows from operating activities:
Profit for the year                                         344.8       324.3

Adjustment for:
Tax                                                         150.6       143.7
Non-cash pensions (credit)/charge                            (0.4)        0.9
Depreciation charge                                           7.3         7.0
(Profit)/loss on disposal of property, plant                 (0.4)        0.1
and equipment
Finance income                                               (0.8)       (0.6)
Finance costs                                                33.2        30.6
Share-based payment charge                                    2.0         2.1
-------------------------------------------------------------------------------
Profit from operations before working                       536.3       508.1
capital changes

Changes in working capital:
Increase in inventories                                    (191.4)     (337.2)
(Increase)/decrease in trade and other                       (8.5)       10.0
receivables
Increase in trade and other payables                         10.2       134.2
-------------------------------------------------------------------------------
Net cash from operations                                    346.6       315.1

Interest paid                                               (25.8)      (26.4)
Tax paid                                                   (144.5)     (127.6)
-------------------------------------------------------------------------------
Net cash from operating activities                          176.3       161.1

Cash flows from investing activities:
Purchase of Westbury shares                                (169.1)          -
Purchases of property, plant and equipment                  (11.1)      (12.9)
Proceeds from sale of property, plant and equipment          1.3         2.5
Interest received                                            0.8         0.6
-------------------------------------------------------------------------------
Net cash used in investing activities                      (178.1)       (9.8)

Cash flows from financing activities:
Repayment of borrowings                                     (26.2)      (16.6)
Drawdown on existing loan facilities                         10.0           -
Finance lease principal payments                             (1.2)       (0.9)
Exercise of share options                                     6.1         6.0
Dividends paid to Group shareholders                        (58.6)      (43.1)
-------------------------------------------------------------------------------
Net cash used in financing activities                       (69.9)      (54.6)
-------------------------------------------------------------------------------
(Decrease)/increase in net cash and cash        2           (71.7)       96.7
equivalents
-------------------------------------------------------------------------------
Net cash and cash equivalents at beginning                   79.4       (17.3)
of year
-------------------------------------------------------------------------------
Net cash and cash equivalents at end of year    3             7.7        79.4
-------------------------------------------------------------------------------



Consolidated Statement of Recognised Income and Expense for the year ended 31 December 2005

-------------------------------------------------------------------------------
                                                           Year to     Year to
                                                       31 December 31 December
                                                              2005        2004
                                                                £m          £m
-------------------------------------------------------------------------------
Effective portion of changes in fair value                    (6.5)       (8.9)
of cash flow hedges
Actuarial losses on defined benefit pension                   (7.6)      (11.1)
schemes
Taxation on items taken directly to equity                     4.2         6.0
-------------------------------------------------------------------------------
Net expense recognised directly in equity                     (9.9)      (14.0)

Profit for the year                                          344.8       324.3
-------------------------------------------------------------------------------
Total recognised income for the year                         334.9       310.3
-------------------------------------------------------------------------------



Notes

1.  Accounting policies

    The financial information has been prepared in accordance with
    International Financial Reporting Standards (IFRSs) as adopted by the
    European Union (EU) and effective (or available for early adoption) at 31
    December 2005. Comparative information for the year ended 31 December 2004
    has been stated on an IFRS basis.

    Full details of IFRS policies applied and reconciliations of comparative
    figures between UK GAAP and IFRS are available in our announcement of
    restatement of financial information for 2004 issued on 24 May 2005. A
    copy of the announcement is available under the Investor Relations area of
    our website, www.persimmonhomes.com.

    As anticipated in previous announcements the EU has now adopted IAS 19
    (Revised), and we have applied the policy of recognising expected pension
    scheme gains and losses via the statement of recognised income and
    expense.

2.  Reconciliation of net cash flow to net debt
-------------------------------------------------------------------------------
                                                         Year to       Year to
                                                     31 December   31 December
                                            Note            2005          2004
                                                              £m            £m
-------------------------------------------------------------------------------
(Decrease)/increase in net cash and cash                   (71.7)         96.7
equivalents
Decrease in debt and finance leases                         17.4          17.5
-------------------------------------------------------------------------------
(Increase)/decrease in net debt from cash                  (54.3)        114.2
flows
New finance leases                                          (1.4)         (0.9)
Non cash flow movements                                    (16.3)         (8.9)
-------------------------------------------------------------------------------
(Increase)/decrease in net debt                            (72.0)        104.4
Net debt at beginning of year                             (196.2)       (300.6)
-------------------------------------------------------------------------------
Net debt at end of year                       3           (268.2)       (196.2)
-------------------------------------------------------------------------------

3.   Analysis of net debt
-------------------------------------------------------------------------------
                                                      31 December   31 December
                                             Note            2005          2004
                                                               £m            £m
-------------------------------------------------------------------------------
Cash and cash equivalents                                    10.7          84.6
Bank overdrafts                                              (3.0)         (5.2)
-------------------------------------------------------------------------------
Net cash and cash equivalents                                 7.7          79.4
Bank loans                                                  (10.0)            -
US and UK senior loan notes due within one year             (20.2)        (13.4)
US and UK senior loan notes due after more                 (222.3)       (222.5)
than one year
Forward currency swaps                                      (20.9)        (37.4)
Finance leases                                               (2.5)         (2.3)
-------------------------------------------------------------------------------
Net debt at end of year                        2           (268.2)       (196.2)
-------------------------------------------------------------------------------

4.   Taxation

     Taxation has been calculated at an effective rate of 30.4% of profit after
     financing costs (2004: 30.7%).

5.   Acquisitions

     On 24 November 2005 Persimmon plc made an offer for the entire issued and
     to be issued share capital of Westbury plc, the consideration for which is
     being paid wholly in cash.

     On the same date the Group acquired 30 million 10p ordinary shares of
     Westbury plc, being 26.1% of the issued share capital, for consideration
     of £169.1m via market purchases.

     On 17 January 2006 the Group's offer for the entire issued and to be
     issued share capital of Westbury plc was declared unconditional. The
     results of Westbury plc will be included in the consolidated reports of
     Persimmon plc from this date.

     During the year the Group purchased the net assets of Senator Homes
     Limited for £24.9m (including debt of £9.8m). Management considers this
     transaction to be primarily a land purchase.

6.   Earnings per share

     Basic earnings per share is calculated by dividing the earnings
     attributable to ordinary shareholders of £344.8m (2004: £324.3m) by the
     weighted average number of ordinary shares in issue, excluding those held
     by the Employee Share Ownership Trust and the Employee Benefit Trust which
     are treated as cancelled. The weighted average number of ordinary shares
     in issue during the year is 291,120,186 (2004: 285,707,897).

     For diluted earnings per share, the weighted average number of ordinary
     shares in issue is adjusted to assume conversion of all dilutive potential
     ordinary shares from the start of the accounting period. The company has
     only one category of potentially dilutive ordinary shares: those share
     options and awards granted to Directors and employees where the exercise
     price is less than the average market price of the Company's ordinary
     shares during the year.

     The weighted average number of ordinary shares so calculated is
     292,236,493 (2004: 287,530,169).

7.   Dividends

     It is proposed to pay a final dividend of 19.0p per share on 21 April 2006
     to shareholders on the register at the close of business on 10 March 2006.
     In accordance with IAS 10, the liability for the payment of the dividend
     has not been included in the financial statements.

     During the year the 2004 final dividend of 18.4p and the 2005 interim
     dividend of 12.0p were paid to shareholders.

8.   Status of financial information

     The financial information set out above does not constitute the Company's
     consolidated statutory accounts for the years ended 31 December 2005 or
     2004 but is derived from those accounts. Statutory accounts for the year
     ended 31 December 2004, under UK GAAP, have been delivered to the
     Registrar of Companies, and those for the year ended 31 December 2005,
     under IFRSs, 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 20 March 2006.
     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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