Interim Results

Persimmon PLC
28 August 2001

                                PERSIMMON PLC

            INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2001

Highlights
-   Completed acquisition and successful integration of Beazer Group
-   35% increase in earnings per share to 25.7p* (2000: 19p*)
-   Interim dividend up 10.3% to 4.3p a share
-   Average selling price increased by 15% to £119,645** (2000: £103,770**)
-   Total sales up by 93% to £698.1m** (2000: £361.4m**)
-   Pre-tax profit increased by 73% to £83.9m* (2000: £48.6m*)
-   Legal completions up 68% to 5,835** (3,483**)
-   Realisation of synergy savings accelerated
-   Annual rate of synergy savings in excess of £33m

* before goodwill amortisation of £3.1m (2000: £0.1m) and exceptional
reorganisation costs of £12.0m (2000: £nil)

** excluding BES resales

Duncan Davidson, Chairman, said: 'The six months to 30th June 2001 was the
most significant period in Persimmon's history to date. All areas of the
enlarged group performed well, particularly the original Persimmon businesses,
which achieved strong sales and profit growth.

Our long experience in this industry has demonstrated to us the relative
resilience of the new housing market to interest rate movements. This,
combined with the restrictions that have been placed on the availability of
consented land, underlines our confidence that a healthy outlook for the
housing market can be sustained.

We are committed to achieving operating margins in excess of 15 per cent and
we will continue to manage volumes by maximising profit per plot. We have
every confidence that we will achieve our targets of total sales for the year
2001 and beyond.'

For further information, please contact:

Duncan Davidson, Chairman                Edward Orlebar/ Faeth Finnemore
John White, Chief Executive              Finsbury
Persimmon plc                            Tel: [phone]
Tel: [phone] on 28th August
Tel: [phone] thereafter

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





                                PERSIMMON PLC

            INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2001



CHAIRMAN'S STATEMENT



The six months to 30th June 2001 was the most significant period in
Persimmon's history to date. All areas of the enlarged group performed well,
particularly the original Persimmon businesses, which achieved strong sales
and profit growth.

We completed the acquisition of Beazer Group plc on 14th March. Since then we
have concentrated on the integration of the acquired business into the
Persimmon Group. This has been completed rapidly and effectively. We acted
quickly to turn round the old Beazer activities, increasing selling prices and
cutting costs. We expect to deliver in excess of £33 million of annualised
savings from the acquisition, and synergies and procurement benefits are
already being realised.

Aided by the strong housing market, the enlarged Persimmon completed 5,835
units, 68 per cent more than in the first half of 2000. The original Persimmon
business completed 3,638 units, representing a 4.5 per cent increase on the
same period last year. Our average selling price was £119,645 (2000: £103,770)
giving total sales revenue of £698 million. We increased earnings per share in
the first half (before goodwill and exceptional costs) by 35 per cent to 25.7p
(2000: 19p). Net pre-tax profits (before those items) rose by 73 per cent to £
83.9 million (2000: £48.6 million).

Profits at the operating level were £100.2 million (before goodwill and
exceptional costs) giving an operating margin of 14.4 per cent, including the
acquisition of Beazer which had much lower operating margins than Persimmon.
Margins in the original Persimmon business were particularly strong at 15.7
per cent which is an increase on the 15.1 per cent achieved in the first half
of 2000. We are confident that synergy savings will support margin improvement
across the whole business going forward. Our return on average capital
employed for the six months to 30th June 2001 was 20.0 per cent (June 2000:
21.5 per cent) reflecting this dilution of operating margins and the initial
higher level of debt.

The exceptional costs of the Beazer integration are in line with original
estimates of £12.0 million, and have been fully charged against profits to
30th June 2001. The integration plan has delivered £179.6 million cash inflow
from operating activities in the same period.

Persimmon's net borrowings peaked at c.£800 million following the acquisition.
By applying stringent financial disciplines we reduced this debt to £575
million by 30th June 2001. The average life of this debt is circa 6 years. Our
gearing level was 77 per cent, which was ahead of plan and already takes us
close to our target of 70 per cent gearing at 31st December 2001, which we set
at the time of the acquisition. In addition, land creditors of the combined
business have been reduced by 42 per cent to £93 million, from £160 million at
14 th March 2001.

Our landbank remains the strongest in the industry, with 52,434 plots now
owned and under control, and an additional 18,905 acres of strategic land. We
are currently in the process of conducting a review of the land portfolio we
acquired from Beazer, the fair value of which is in line with our
expectations. We continue to acquire land at keen levels in order to optimise
our landbank through controlled replacement.

Persimmon's enlarged North and South Divisions are both operating very
effectively following the successful integration of the newly-acquired
businesses. Demand remains strong in all regions. We are making good progress
with our stated objective of improving margins from the acquired assets, and
we are controlling our volumes by maximising selling prices.

We are also focusing on expanding the Charles Church business, with new
operations in the Western and Northern regions. We are confident that our
restructured management teams and improvements in working practices will
ensure margin improvement. Our confidence is underpinned by strong customer
interest.

The old Beazer timber frame factories and Partnerships businesses will not
form part of Persimmon's core activities in the future. Accordingly, we are
proceeding with negotiations for the disposal of these businesses upon
satisfactory terms.

We are increasing our interim Dividend by 10.3 per cent to 4.3p per share.
This Dividend will be payable on 26th October 2001 to shareholders on the
Register on 14th September 2001. As before we are offering a Scrip Dividend
alternative.

The housing market remains strong and we are continuing to achieve forward
sales at satisfactory volumes and prices. Our long experience in this industry
has demonstrated to us the relative resilience of the new housing market to
interest rate movements. This, combined with the restrictions that have been
placed on the availability of consented land, underlines our confidence that a
healthy outlook for the housing market can be sustained.

We are committed to achieving operating margins in excess of 15 per cent and
we will continue to manage volumes by maximising profit per plot. We have
every confidence that we will achieve our targets of total sales for the year
2001 and beyond.

Once again I thank all the members of the enlarged Persimmon team for their
very hard work in the integration of Beazer, and in taking Persimmon forward
to further successful growth.





Duncan Davidson

28th August 2001







PERSIMMON PLC

Consolidated profit & loss account (unaudited)
                                            Six months  Six months  Year to 31
                                             to 30 June  to 30 June   December
                                      Note         2001        2000       2000
                                                  £'000       £'000      £'000

Turnover                                  2
Continuing operations                          432,863     362,326    742,164
Acquisition                                    265,266           -          -
                                               698,129     362,326    742,164

Cost of sales                                 (566,942)   (291,476)  (595,163)
Gross profit                              2    131,187      70,850    147,001

Net operating expenses                         (46,126)    (16,456)   (31,289)

Operating profit before goodwill               100,209      54,515    116,011
amortisation and exceptional items

Goodwill amortisation                   2,5     (3,126)       (121)      (299)
Exceptional integration costs                  (12,022)          -          -

Operating profit
Continuing operations                           67,769      54,394    115,712
Acquisition                                     17,292           -          -
                                                85,061      54,394    115,712

Net interest payable and similar               (16,299)     (5,948)   (11,696)
charges

Profit on ordinary activities before            68,762      48,446    104,016
taxation

Tax on ordinary activities                     (20,972)    (14,049)   (30,190)

Profit on ordinary activities after             47,790      34,397     73,826
taxation

Dividends                                      (11,980)     (7,108)   (22,635)

Retained profit                                 35,810      27,289     51,191


Basic earnings per share                  6
Before exceptional items (net of tax)             25.7p       19.0p      40.8p
and goodwill
After exceptional items and goodwill              20.7p       19.0p      40.6p

Diluted earnings per share                6
Before exceptional items (net of tax)             25.4p       19.0p      40.5p
and goodwill
After exceptional items and goodwill              20.5p       18.9p      40.4p

Dividend per share                                 4.3p        3.9p      12.4p






PERSIMMON PLC

Consolidated balance sheet (unaudited)
                                                 30 June   30 June  31 December
                                       Note         2001      2000         2000
                                                   £'000     £'000        £'000
Fixed assets
Tangible assets                                  25,496    11,495       12,135
Intangible assets                          5    201,865     3,455        3,277
                                                227,361    14,950       15,412

Current assets
Stocks and work in progress                   1,390,711   683,025      693,932
Debtors                                         111,490    42,959       66,369
Cash at bank and in hand                   4     63,357    31,443       11,654

                                              1,565,558   757,427      771,955

Creditors due within one year
Borrowings                                 4    (33,534)   (9,954)     (11,699)
Other creditors                                (378,503) (209,783)    (206,152)
                                               (412,037) (219,737)    (217,851)

Net current assets                             1,153,521  537,690      554,104

Total assets less current liabilities         1,380,882   552,640      569,516

Creditors due after more than one year
Borrowings                                 4   (605,095) (116,105)    (116,105)
Other creditors                                 (29,948)  (43,121)     (35,005)

                                               (635,043) (159,226)    (151,110)

Net assets                                      745,839   393,414      418,406

Capital and reserves
Called up share capital                          27,549    18,258       18,288
Share premium account                           202,614   200,846      201,304
Merger reserve                                  281,344     3,123        3,123
Revaluation reserve                               1,242     1,242        1,242
Profit and loss account                         233,090   169,945      194,449

Equity shareholders' funds                      745,839   393,414      418,406

Net assets per share                              270.7p    215.5p       228.8p






PERSIMMON PLC

Consolidated cash flow statement (unaudited)
                                              Six months Six months Year to 31
                                                  to 30      to 30    December
                                                    June       June
                                        Note        2001       2000       2000
                                                   £'000      £'000      £'000

Net cash inflow from operating              3   179,611     46,601     61,149
activities

Return on investments and servicing of
finance
Interest received                                      -        36         36
Interest paid                                   (15,603)    (5,516)   (11,536)
Interest paid on finance leases                    (141)      (180)      (334)

                                                (15,744)    (5,660)   (11,834)

Taxation
UK corporation tax paid                         (10,631)    (7,581)   (28,189)

Capital expenditure
Purchase of tangible fixed assets                (2,306)    (1,547)    (3,818)
Sale of tangible fixed assets                       183        268        693

                                                 (2,123)    (1,279)    (3,125)

Acquisitions and disposals
Acquisition of businesses and                  (323,882)   (19,078)   (19,078)
subsidiaries
Net overdrafts acquired with                    (54,443)         -          -
subsidiaries

                                               (378,325)   (19,078)   (19,078)

Equity dividends paid                           (13,670)   (11,796)   (18,735)

Net cash (outflow)/ inflow before              (240,882)     1,207    (19,812)
management of liquid resources and
financing

Financing
Bank loans advanced                             315,000     45,000    120,000
Repayment of bank loans                         (36,993)   (52,893)  (127,893)
Expenses in connection with share issue          (4,000)         -          -
Exercise of share options                         5,697        170        658
Repayment of principal under finance               (954)    (1,152)    (2,155)
leases
Net cash inflow/(outflow) from                  278,750     (8,875)    (9,390)
financing

Increase/(decrease) in cash                 4    37,868     (7,668)   (29,202)





PERSIMMON PLC

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 2000. In addition, the group has adopted Financial
      Reporting Standard ('FRS') 19 (Deferred Tax). Adoption of this new
      standard has not had a material impact upon this interim statement.

2.    Cost of sales and net operating expenses

                            Continuing                   Six      Six   Year to
                                                      months   months
                                                          to       to
                            Operations Acquisitions       30       30        31
                                                        June     June  December
                                  2001         2001     2001     2000      2000
                                 £'000        £'000    £'000    £'000     £'000

Turnover                       432,863      265,266  698,129  362,326   742,164

Cost of sales                 (346,648)    (220,294)(566,942)(291,476) (595,163)
Gross profit                    86,215       44,972  131,187   70,850   147,001

Net operating Expenses         (18,446)     (27,680) (46,126) (16,456)  (31,289)
Operating profit before 
goodwill                        67,949       32,260  100,209   54,515   116,011
amortisation and exceptional
items
Goodwill amortisation             (180)      (2,946)  (3,126)    (121)     (299)
Exceptional integration costs        -      (12,022) (12,022)       -         -
Operating Profit                67,769       17,292   85,061   54,394   115,712


Goodwill amortisation of £2,946,000 and exceptional integration costs of £
12,022,000 relate to the acquisition of Beazer Group plc and its integration
into the group (see note 5).

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

                            Six months to 30  Six months to 30      Year to 31
                                         June              June        December
                                         2001              2000            2000
                                        £'000             £'000           £'000

Operating profit                      85,061             54,394        115,712
Depreciation charge                    2,451             1,520           3,236
Amortisation of goodwill               3,126               121             299
(Profit)/loss on sale of                 (38)               34              26
tangible fixed assets
LTIP charge                              823               325             765
Decrease/(increase) in               184,841           (81,234)        (92,141)
stocks and work in progress
Decrease/(increase) in                 4,080             7,268         (16,184)
debtors
(Decrease)/increase in              (100,733)           64,173          49,436
creditors

Net cash inflow from                 179,611            46,601          61,149
operating activities



4.  Reconciliation of net cash flow to net debt
                                     Six months to  Six months to   Year to 31
                                           30 June        30 June      December
                                              2001           2000          2000
                                             £'000          £'000         £'000

Increase/(decrease) in cash                37,868         (7,668)      (29,202)
(Increase)/decrease in debt and          (277,053)         9,045        10,048
lease finance

(Increase)/decrease in net debt          (239,185)         1,377       (19,154)
from cash flows
New finance leases                           (149)          (633)       (1,135)
Loans and finance leases acquired        (220,321)             -             -
with subsidiaries

(Increase)/decrease in net debt          (459,655)           744       (20,289)
Net debt at beginning of period          (119,458)       (99,169)      (99,169)

Net debt at end of period                (579,113)       (98,425)     (119,458)

Analysed as:
Cash at bank and in hand                   63,357         31,443        11,654
Bank overdrafts                           (17,641)        (2,061)       (3,806)
Bank loans                               (323,000)             -             -
US senior loan notes                     (297,988)      (123,998)     (123,998)
Finance leases                             (3,841)        (3,809)       (3,308)
Net debt at end of period                (579,113)       (98,425)     (119,458)



5.    Acquisition
      On 14 March 2001, the group acquired the entire issued share capital of
      Beazer Group Plc for a total consideration of £612,045,000. The
      consideration includes £284,873,000 in respect of the issue of 88,745,560
      ordinary shares which, in accordance with FRS1 (Revised 1996), has been
      excluded from the cash flow statement as a non-cash transaction.

      This acquisition has been accounted for using the acquisition method of
      accounting. After the alignment of accounting policies and other
      adjustments to the valuation of assets to reflect their fair value, the
      provisional fair value of assets acquired is £410,331,000. Goodwill of £
      201,714,000 has been capitalised in the consolidated balance sheet in
      accordance with FRS10 ('Goodwill and Intangible Assets') and is being
      amortised over a period of 20 years. The amortisation charge in the six
      months ended 30 June 2001 is £2,946,000.

6.    Earnings per share
      The calculation of basic earnings per share after exceptional items and
      goodwill is based on earnings after taxation of £47,790,000 (six months
      to 30 June 2000: £34,397,000 and year ended 31 December 2000: £
      73,826,000) and 230,421,910 ordinary shares (30 June 2000: 181,304,181
      and 31 December 2000: 181,732,010) being the weighted average number of
      ordinary shares in issue during the period.

      Diluted earnings per share after exceptional items and 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. The weighted
      average number of ordinary shares so calculated is 233,395,824 (30 June
      2000: 182,050,339 and 31 December 2000: 182,819,352).

      The calculations of basic and diluted earnings per share before
      exceptional items and goodwill are based on earnings after taxation of £
      59,331,000 (six months to 30 June 2000: £34,518,000 and year ended 31
      December 2000: £74,125,000)

7.    The figures for the half years to 30 June 2001 and 30 June 2000 are
      unaudited. The figures included in the Profit and Loss Account for the
      year to 31 December 2000, the Balance Sheet at 31 December 2000 and the
      Cash Flow Statement for the year to 31 December 2000 are extracts from
      the latest published accounts which have been delivered to the Registrar
      of Companies. The report of the auditors on those accounts was
      unqualified.

8.    The interim statement is being sent to all shareholders and is available
      upon request 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