Interim Results

Persimmon PLC
26 August 2003

26 August 2003

                                 PERSIMMON PLC
             INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2003

Highlights

•  Sales achieved in the half were up 5% at £857.2m (2002: £820.0m)
•  Profit before tax and goodwill amortisation increased by 29% to £151.7 
   million (2002: £117.2 million) with earnings per share up 27% to 37.6p per 
   share (2002: 29.6p per share)
•  Average selling price in the period was £154,110 (2002: £134,431).  In the 
   North, the average selling price was £125,956 (2002: £103,453) and £163,749 
   (2002: £143,672) in the South
•  Group operating margins improved to 19.4% (2002: 16.4%) with strong increases 
   achieved in both Core Housing and Charles Church
•  Return on average capital employed increased to 23.5% (2002: 19.0%)
•  Landbank increased to 56,424 plots (2002: 52,656), which represents a c. 4.7 
   year supply
•  Excellent cash generation and strong balance sheet with gearing driven down 
   to 37% (2002: 45%) after significant investment in land
•  Interim dividend increased 47% to 7.0p per share to reflect both the Board's 
   confidence in future prospects and a more even split between first half and 
   full year dividend distribution.  Total dividend payout for the year will be 
   not less than 17.4p per share (15% up on 2002)
•  Total sales of £840m already achieved for the second half of 2003

Duncan Davidson, Group Chairman, said: 'Persimmon has performed very strongly in
the first half showing good increases in sales, margins and return on capital.
Market conditions are sound and this together with our broad geographic spread
and long landbank gives us great confidence that we can continue to achieve
excellent growth.'


For further information, please contact:
Duncan Davidson, Group Chairman                  Edward Orlebar / Faeth Birch
John White, Group Chief Executive                Finsbury Group
Mike Killoran, Group Finance Director            Tel: [phone]
Persimmon plc -
Tel: [phone] on 26 August
Tel: [phone] thereafter

Photographs are available for media download from www.newscast.co.uk


                                PERSIMMON PLC

            INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2003


CHAIRMAN'S STATEMENT

RESULTS

During the six months to 30 June 2003, Persimmon made pre-tax profits of £151.7
million (2002: £117.2 million) before goodwill, on turnover up 5 per cent at
£857.2 million (2002: £820.0 million).  This is a 29 per cent increase over the
first six months of 2002, and a record for any six-month period in the Company's
history.  Earnings per share (before goodwill) in the six months increased by 27
per cent to 37.6 pence per share (2002: 29.6 pence per share).

As indicated in our trading statement on 25 June 2003, the volume of legal
completions of new homes was 9 per cent lower at 5,562 as new outlet openings
were constrained by planning delays.  However, our operating profits (before
goodwill) increased by 24 per cent to £166.3 million (2002: £134.2 million).
The 15 per cent increase in average selling price of our new homes to £154,110
compared to the first half of 2002 was achieved partly due to a change in our
product mix and an increase in sales extras.

As a result of our continuing focus on profitability, operating margin increased
to 19.4 per cent (2002: 16.4 per cent). We have been successful in controlling
build and direct costs in delivering this improvement. Return on average capital
employed rose to 23.5 per cent (2002: 19.0 per cent).

We have increased our investment in land and work in progress to £1.6 billion
(June 2002: £1.3 billion) which places Persimmon in a strong position for the
future.  Total plots owned and under our control are now 56,424 plots (June
2002: 52,656 plots) giving us the ability to increase outlets and volumes as the
market grows.  Despite this increased investment our borrowings were reduced to
£377 million at 30 June 2003 (£392 million at 30 June 2002).  This gives a
gearing ratio of 37 per cent (2002: 45 per cent).  Net assets per share rose by
17 per cent to 362.8 pence (2002: 309.3 pence per share).

REVIEW OF OPERATIONS

In the South Division Persimmon legally completed 2,727 new homes representing a
16 per cent reduction over the particularly strong first half of 2002.  The
average selling price was up 14 per cent at £163,749 (2002: £143,672).  In the
North, there were 2,375 legal completions (2002: 2,471) at an average selling
price up 22 per cent at £125,956 (2002: £103,453). Overall, core housing margins
covering both the North and South regions improved to 20.2 per cent (2002: 16.9
per cent).

Our premium brand, Charles Church, also performed strongly in the half, as unit
completions increased in line with plan to 460 (2002: 390).  As a result of
broadening the regional spread of the Charles Church brand, the average selling
price decreased slightly to £242,333 (2002: £253,957).  Operating margins in
Charles Church increased to 14.3 per cent (2002: 12.6 per cent).

DIVIDEND

Persimmon, in common with most other house builders, had an historic track
record of achieving higher profits in the second half of each trading year than
in the first half. We have been working hard over the last few years to achieve
a more even split in profits between the two halves of each year. The attention
we have applied to this aspect of our business is bearing fruit resulting in a
more even flow of legal completions, which enables the business to control costs
and efficiency thereby improving margins. Consequently, we have decided to
change our policy for the payment of dividends to shareholders.  Historically,
approximately one third of the total dividend was paid at the interim stage and
two thirds as the final payment.  We are now moving to a payment of
approximately 40 per cent at the interim stage and 60 per cent as the final
dividend.

For the six months to 30 June 2003 we are increasing our interim dividend to 7.0
pence per share (2002: 4.75 pence per share).  This dividend will be payable on
24 October 2003 to shareholders on the Register on 5 September 2003.  As before
we are offering a scrip dividend alternative.

The final dividend payable in April 2004 will be not less than 10.4 pence per
share, which was the amount of the final dividend paid in April 2003. This
represents an increased level of total dividend distribution to at least 17.4
pence per share, up 15 per cent on the 15.15 pence per share paid for the year
2002 and underlines the Board's confidence in the prospects for the Group.

OUTLOOK

Persimmon has the scale and operational spread, with a strong land bank, a
strategic land portfolio of c. 21,000 acres, and a management structure in place
which can increase our volumes as conditions allow.

We have been encouraged by the particularly good sales volumes and visitor
levels throughout the summer months, and as at 20 August 2003 we already have
total sales booked for the second half of this year of c. £840 million at an
average selling price of c. £154,800.  This is in addition to the completions
achieved in the first half. As we have stated previously, the market has resumed
a more normal trading pattern and we are continuing to achieve price growth in
all markets outside London.  We now have 5 per cent more outlets than at the
same date last year and we will be opening additional new developments during
the next few months.

The Government is seeking to alleviate the problem of under-supply of new
housing which we very much welcome.  In the meantime we continue to focus on the
basics of good house building whilst ensuring that a strong platform for further
growth is maintained.

Persimmon has performed very strongly in the first half showing good increases
in sales, margins and return on capital.  Market conditions are sound and this
together with our broad geographic spread and long land bank gives us great
confidence that we can continue to achieve excellent growth.

Every member of the Persimmon team has responded very well to the challenges of
our growing business.  I thank them all for their contribution to our success.

Duncan Davidson
26th August 2003



PERSIMMON PLC
Consolidated profit & loss account (unaudited)


                                                              Six months to   Six months to       Year to 31
                                                                    30 June         30 June         December
                                                     Note              2003            2002             2002
                                                                         £m              £m               £m

Turnover
Continuing operations                                                 857.2           820.0          1,711.1

Cost of sales                                                       (652.5)         (652.8)        (1,345.9)
Gross profit                                                          204.7           167.2            365.2

Net operating expenses                                               (43.8)          (38.4)           (76.2)


Operating profit before goodwill amortisation                         166.3           134.2            299.8

Goodwill amortisation                                                 (5.4)           (5.4)           (10.8)


Operating profit
Continuing operations                                                 160.9           128.8            289.0

Net interest payable and similar charges                             (14.6)          (17.0)           (32.2)

Profit on ordinary activities before taxation                         146.3           111.8            256.8

Tax on ordinary activities                                           (46.0)          (35.1)           (80.3)

Profit on ordinary activities after taxation                          100.3            76.7            176.5

Dividends                                                            (19.8)          (13.3)           (42.4)

Retained profit                                                        80.5            63.4            134.1


Basic earnings per share                                5
Before goodwill                                                       37.6p           29.6p            67.0p
After goodwill                                                        35.7p           27.6p            63.1p

Diluted earnings per share                              5
Before goodwill                                                       37.3p           29.3p            66.3p
After goodwill                                                        35.4p           27.4p            62.5p

Dividend per share                                                     7.0p           4.75p           15.15p



PERSIMMON PLC
Consolidated balance sheet (unaudited)


                                                               30 June            30 June        31 December
                                               Note               2003               2002               2002
                                                                    £m                 £m                 £m
Fixed assets
Tangible assets                                                   24.1               28.8               23.5
Intangible assets                                                187.4              198.2              192.8
                                                                 211.5              227.0              216.3


Current assets
Stocks and work in progress                                    1,649.5            1,376.9            1,433.4
Debtors due after one year                                         2.9                  -                2.9
Debtors due within one year                                      115.3              127.2              109.1
Cash at bank and in hand                          4               12.0                0.7                9.8

                                                               1,779.7            1,504.8            1,555.2


Creditors due within one year
Borrowings                                        4              (8.6)             (30.8)             (24.9)
Other creditors                                                (540.2)            (447.6)            (458.6)
                                                               (548.8)            (478.4)            (483.5)

Net current assets                                             1,230.9            1,026.4            1,071.7

Total assets less current liabilities                          1,442.4            1,253.4            1,288.0


Creditors due after more than one year
Borrowings                                        4            (380.6)            (362.2)            (322.2)
Other creditors                                                 (34.9)             (26.9)             (28.8)

                                                               (415.5)            (389.1)            (351.0)

Net assets                                                     1,026.9              864.3              937.0


Capital and reserves
Called up share capital                                           28.3               27.9               28.0
Share premium account                                            212.8              209.1              210.4
Merger reserve                                                   281.4              281.4              281.4
Revaluation reserve                                                1.2                1.2                1.2
Profit and loss account                                          503.2              344.7              416.0

Equity shareholders' funds                                     1,026.9              864.3              937.0

Net assets per share                                            362.8p             309.3p             334.6p




PERSIMMON PLC
Consolidated cash flow statement (unaudited)


                                                             Six months to    Six months to          Year to
                                                                   30 June          30 June      31 December
                                                     Note             2003             2002             2002
                                                                        £m               £m               £m

Net cash inflow from operating activities                             50.1            164.3            287.1

Return on investments and servicing of finance
Interest received                                                      0.2              0.2              0.4
Interest paid                                                       (15.0)           (18.3)           (33.2)
Interest paid on finance leases                                      (0.1)            (0.2)            (0.3)
                                                                    (14.9)           (18.3)           (33.1)

Taxation
UK corporation tax paid                                             (39.9)           (13.9)           (56.9)

Capital expenditure
Purchase of tangible fixed assets                                    (4.6)            (6.5)            (9.7)
Sale of tangible fixed assets                                          2.3              0.8              6.6
                                                                     (2.3)            (5.7)            (3.1)

Acquisitions and disposals
Acquisition of businesses and subsidiaries              6            (2.6)            (1.6)            (1.6)
Net borrowings acquired with subsidiaries                            (9.0)                -                -
                                                                    (11.6)            (1.6)            (1.6)

Equity dividends paid                                               (22.4)           (22.1)           (34.8)

Net cash (outflow)/inflow before financing                          (41.0)            102.7            157.6

Financing
Bank loans advanced                                                   60.0                -                -
Repayment of bank loans                                              (7.9)           (87.9)          (127.9)
Exercise of share options                                              2.0              2.5              3.4
Repayment of principal under finance leases                          (0.9)            (1.1)            (1.9)
Net cash inflow/(outflow) from financing                              53.2           (86.5)          (126.4)

Increase in cash                                        3             12.2            16.2              31.2



Reconciliation of operating profit to net cash inflow from operating activities

                                                              Six months to   Six months to         Year to
                                                                    30 June         30 June     31 December
                                                                       2003            2002            2002
                                                                         £m              £m              £m

Operating profit                                                      160.9           128.8           289.0
Depreciation charge                                                     3.5             3.2             6.4
Amortisation of goodwill                                                5.4             5.4            10.8
Profit on sale of tangible fixed assets                               (0.2)           (0.1)           (0.2)
LTIP charge                                                             0.7             1.0             1.5
Increase in stocks and work in progress                             (179.7)          (24.0)          (80.4)
(Increase)/decrease in debtors                                        (3.5)           (9.8)             7.2
Increase in creditors                                                  63.0            59.8            52.8

Net cash inflow from operating activities                              50.1           164.3           287.1


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 
     2002.

2.   Taxation

     Taxation has been calculated at 30.3% of profit on ordinary activities 
     before taxation and goodwill amortisation (six months to 30 June 2002: 
     29.9% and year ended 31 December 2002: 30.0%).  This is the estimated 
     effective tax rate before goodwill amortisation for the year to 31 December 
     2003.

3.   Reconciliation of net cash flow to net debt

                                                     Six months to      Six months to            Year to
                                                           30 June            30 June        31 December
                                                              2003               2002               2002
                                                                £m                 £m                 £m

Increase in cash                                              12.2               16.2               31.2
(Increase)/decrease in debt and lease finance               (51.2)               89.0              129.8

(Increase)/decrease in net debt from cash flows             (39.0)              105.2              161.0
New finance leases                                           (1.0)              (0.5)              (1.0)

(Increase)/decrease in net debt                             (40.0)              104.7              160.0
Net debt at beginning of period                            (339.4)            (499.4)            (499.4)

Net debt at end of period                                  (379.4)            (394.7)            (339.4)


4.   Analysis of net debt

                                                           30 June            30 June        31 December
                                                              2003               2002               2002
                                                                £m                 £m                 £m

Cash at bank and in hand                                      12.0                0.7                9.8
Bank overdrafts                                              (7.0)             (22.9)             (17.0)
Bank loans                                                 (100.0)             (80.0)             (40.0)
US and UK senior loan notes                                (282.2)            (290.1)            (290.1)
Finance leases                                               (2.2)              (2.4)              (2.1)
Net debt at end of period                                  (379.4)            (394.7)            (339.4)

     
5.   Earnings per share

     The calculation of basic earnings per share after goodwill is based on 
     earnings after taxation of £100.3m (six months to 30 June 2002: £76.7m and 
     year ended 31 December 2002: £176.5m) and 281,090,575 ordinary shares (30 
     June 2002: 277,857,071  and 31 December 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.  The weighted average number of ordinary shares 
     so calculated is 283,515,908 (30 June 2002: 280,316,821 and 31 December 
     2002: 282,511,605).

     The calculations of basic and diluted earnings per share before goodwill 
     are based on earnings after taxation of £105.7m (six months to 30 June 
     2002: £82.1m and year ended 31 December 2002: £187.3m).

6.    Acquisitions

     On 4 June 2003 the Group acquired the entire share capital of Merewood 
     Group Limited for consideration amounting to £22.7m, being the fair value 
     of the group's assets.  Deferred consideration of £20.1m was paid in July 
     2003.   There was no goodwill arising on the acquisition.

     Post-acquisition results for the acquired trade have not been separately 
     analysed on grounds of materiality.
     
7.   Basis of preparation

     The figures for the half years to 30 June 2003 and 30 June 2002 are 
     unaudited.  The figures included in the Profit and Loss Account for the 
     year to 31 December 2002, the Balance Sheet at 31 December 2002 and
     the Cash Flow Statement for the year to 31 December 2002 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


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