Interim Results

Persimmon PLC
22 August 2006


22 August 2006

                 RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006

Highlights

• Record pre-tax profits* up 16% at £271.5m (H1 2005: £234.9m).

• Earnings per share* grew by 15% to 64.4p from 56.2p for H1 2005.

• Proposed half year dividend to increase by 15% to 13.8p per share 
  (H1 2005: 12.0p).

• Turnover up by 42% to £1.5bn (H1 2005: £1.1bn).

• Home completions up by more than 38% to 8,226 units (H1 2005: 5,954 units).
  Average selling price up 3% to £188,427 (H1 2005: £183,581). Underlying
  original Persimmon volumes increased by 7%.

• Integration of Westbury acquisition completed ahead of expectations:
  gearing reduced to 50% six months ahead of schedule - strong free cash flow
  of £284m generated.

• Synergy savings from Westbury acquisition accelerated to £10m in the first
  half with at least a further £20m expected in the second half. Savings in
  excess of £40m expected for 2007 and beyond.

• Operating margin remains at industry leading level: operating margin
  reduced from 23.0% to 19.9% following the acquisition of the lower margin
  Westbury business.

• Land bank strengthened: total consented plots stands at 78,305 up from
  62,157 in H1 2005, this includes c. 2,000 plots pulled through from our
  strategic land bank.

• Strategic land portfolio: up by 22% to 23,210 acres (H1 2005: 19,102 acres).

• Healthy housing market: forward sales of c. £1.4bn already agreed.

*stated before one off reorganisation costs of £15.4m (2005: £nil).


John White, Group Executive Chairman said: 'The integration of Westbury has been
completed ahead of expectations and the group is well placed to take advantage
of a strong and stable housing market.


'Visitor levels to our sites remain good whilst volumes of sales reservations
and revenues are ahead of last year on a like for like basis. Currently total
sales revenues for the year 2006 including completions to date are at an all
time high of c. £2.9 billion. The high level of sales already achieved puts us
in a healthy position to achieve our volume expectations for the full year.'

For further information, please contact:   

John White, Group Executive Chairman            Faeth Birch
Mike Farley, Group Chief Executive              Edward Simpkins
Mike Killoran, Group Finance Director           Kirsty Flockhart
Persimmon plc                                   Finsbury
Tel: [phone] on 22 August 2006     Tel: [phone]
Tel: [phone] thereafter

A webcast of today's analyst presentation will be available on 
www.persimmonhomes.com by 2pm today.



                              CHAIRMAN'S STATEMENT
             INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006

I have great pleasure in announcing another record set of results for Persimmon
for the 6 months ended 30th June 2006.

RESULTS

Net pre-tax profits for the period (stated before exceptional reorganisation
costs) were £271.5 million an increase of 16% (H1 2005: £235 million). During
the period we completed 8,226 units (H1 2005: 5,954) representing an increase of
more than 38%. Turnover was £1,550 million (H1 2005: £1,093 million) which is an
increase of 42% on the prior half year period. Operating profit was £309.1
million (H1 2005: £251.8 million) an increase of 23%, and earnings per share
increased 15% to 64.4p (H1 2005: 56.2p) (both stated before exceptional
reorganisation costs).

On 17th January 2006 we completed the purchase of Westbury for £664 million
(including costs) plus acquired debt of £422 million. The results announced
therefore include 5 1/2 months of trading from Westbury. The integration of
Westbury has been completed ahead of expectations and the Group is well placed
to take advantage of a strong and stable housing market.

I am particularly pleased to report that we have achieved an operating margin on
the combined business of 19.9% (before exceptional reorganisation costs) during
the period (H1 2005: 23.0%). Despite the expected dilution of Group margin
following the Westbury acquisition we continue to achieve margins at the top end
of industry levels. Prior to acquisition, Westbury's operating margin was 13.9%
and in decline. Our key objective post acquisition was leveraging Persimmon's
best practice and purchasing power, and by the half year we had successfully
halted the margin decline.

Debt levels were reduced significantly ahead of our original projections at the
time of the acquisition. Whilst we made land payments of c. £320 million during
the period, we also controlled work in progress tightly and applied strict
discipline to our stock levels. By doing so we generated a strong cash inflow
from operations of £417 million which delivered £284 million of free cashflow.
This reduced gearing to 50% by 30th June 2006, six months ahead of our plans.
During the period we also terminated an acquired Westbury Joint Venture
arrangement, Wescott. This action reduces future funding costs and gives us
greater control benefiting the overall outcome of the developments concerned.

Interest costs increased to £37.6 million (H1 2005: £16.9 million) reflecting
the extra debt taken on to fund the acquisition. ROACE was 25.0% compared with
28.8% for the full year of 2005. Interest cover was a comfortable 7.8 times (H1
2005: 14.9 times).

We are increasing the interim dividend in line with underlying earnings growth
by 15% to 13.8p per share. This is an expression of our confidence in the
success of our latest acquisition and in the future earnings capacity of the
Group. The interim dividend will be payable on 20th October 2006 to shareholders
on the Register at 1st September 2006.

As previously reported we took action to integrate Westbury quickly and
effectively in order to improve performance going forward. In doing so we
rationalised the enlarged business with the closure of 8 offices and c. 550 job
reductions. The cost of the reorganisation has largely now been incurred at a
one-off cost of c. £15 million. The synergy savings we expect to deliver from
the action we have taken will be in excess of £40 million per annum for 2007 and
beyond. In addition, by taking swift action we have accelerated the delivery of
the savings. For 2006 we originally forecast delivery of c. £25 million of
savings, with £5 million realised in the period to 30th June 2006, and the
balance during the second half of 2006. In fact we have achieved savings of £10
million to 30th June 2006 and are on course to deliver at least a further £20
million of synergy savings in the second half.

DIVISIONAL SPLIT

During the period we restructured our management teams to ensure that we
continue to apply our tried and tested discipline within the enlarged Group
whilst maintaining the ability to react quickly to changing market conditions
and challenges.

Mike Farley has taken over from me as Group Chief Executive following a very
successful period as Divisional Chief Executive of the original South Division.
Since his appointment he has overseen the integration of Westbury and the
implementation of the new structures with great effect.

We now operate from three geographic divisions each under the control of a
Divisional Chief Executive who presides over a Divisional Board. This divisional
structure has performed admirably throughout the period and is well set to
deliver good results over many years.

The new South Division, whose Chief Executive Nigel Greenaway (age 46) has been
with Persimmon since 1986, completed 1,866 units at an average selling price of
£192,911 (H1 2005: £186,191). Price per sq ft increased by 4% in the 12 month
period. Generally prices have held up well with a reduction in the use of
incentives. Margins have not been under as much pressure in this Division as
some other areas of the country and they have been maintained at the previous
high levels, whilst we continue to sell at good rates.

The new Central Division, whose Chief Executive David Thornton (age 49) has been
with Persimmon for 14 years, completed 2,968 units at an average selling price
of £168,147 (H1 2005: £169,582). Price per sq ft increased by 3% in the 12 month
period. Prices in this Division have generally been stable with some pressure on
margins in the north of its area of operation, whilst the Midlands has been
patchy. Currently sales rates are quite satisfactory for the time of year.

The new North Division, whose Chief Executive Jeff Fairburn (age 40) has been
with Persimmon for 16 years, completed 1,926 units at an average selling price
of £169,432 (H1 2005: £167,114). Price per sq ft increased by 1% in the 12 month
period. This Division covers Scotland, an area which has continued to trade
strongly. The North East of England has firmed up following a more difficult
trading period in the second half of last year. Elsewhere in the North the
market varies from challenging to stable whilst margins have generally remained
firm.

The Charles Church brand completed 1,466 units at an average selling price of
£248,731 (H1 2005: £279,014). This reduction in average selling price was
planned to accord with our strategy of broadening the product offering and is
also below the £250,000 threshold for stamp duty increases. This was mainly due
to the impact of a high proportion of Westbury sales particularly in the North
West and an increased number of sales in the North generally.

Charles Church volumes achieved in the first half puts us on target to complete
c. 3,000 units in a full year, as indicated earlier this year following the
Westbury acquisition. The gross profit per plot we have achieved with this brand
is at a higher level than that of the Core housing division although the margin
is lower. This represents good potential for improvement as we realise better
operating efficiencies as volumes increase and national coverage is achieved.

LAND

We have stated many times that land is the essential ingredient for house
builders and the attention and emphasis we have placed upon its acquisition and
control over many years has been and will continue to be key to our success.

Over recent years our strategy has been to acquire large land opportunities
where we saw best value. A number of those acquisitions are now being developed
having been carefully master planned over the past 2-3 years. For example, the
78 acre redundant brownfield site at Cape Hill Brewery in Birmingham which we
agreed to purchase for £26 million in 2003 now has planning for 836 homes and
will generate sales revenue of over £145 million. Development works are well
underway and the first release of homes for sale have been reserved very
quickly. We anticipate first occupations in September this year. Demand is very
strong and we expect the development to continue to produce good volumes and
margins for several years.

Similarly, the 97 acre ex Massey Ferguson plant site in Coventry which we agreed
to purchase in January 2004 for £22.5 million has been cleared and remediated.
Infrastructure works are well advanced and the first homes were offered for sale
last month with an excellent response from purchasers. We now have consent for
over 650 homes and 36 acres for B1/B2 commercial use at this location. The
expected gross revenue for the homes content will be in excess of £105 million
and all of the Group's brands will be active on site, Persimmon, Charles Church
and Westbury Partnerships.

The Group has a total landbank of 92,156 plots, a c. 5 year supply of which
78,305 plots are owned and under control with a further 13,851 plots where we
have agreed terms to purchase and are proceeding to contract. In addition we
control 23,210 acres of land in our strategic land portfolio. A large amount of
the strategic land acquired with Westbury has excellent potential and we are
confident it will provide a significant number of consented plots to our
landbank over future years. For example, we recently received a resolution to
grant planning consent for over 1,000 homes on an ex-Westbury strategic site at
Andover and a further c. 120 homes at Salisbury and look forward to bringing a
number of other sites on stream during the current year.

Additionally we are currently finalising the planning agreements to develop c.
800 homes in Bridgwater acquired with the Beazer acquisition having promoted
this land for development for many years. This shows once again the significant
benefits of our past corporate acquisition strategy.

Of course Persimmon also achieves successes on its other existing long term land
holdings such as the imminent conclusion of the planning negotiations for c. 630
homes plus 6 hectares of employment use at Old Sarum, Salisbury.

All of these strategic land holdings will be acquired at a discount to open
market value under the terms of our legal options therefore ensuring excellent
margins and again highlights the benefits of long term strategic planning and
investment.

We were also delighted to receive consent for 280 homes at Newcastle-under-Lyme
on land which was acquired by Beazer as part of a parcel of land holdings from
British Coal and is owned freehold at non-residential values.

Given the restrictive planning regime in the UK, it has been Persimmon's
long-held view that in order to compete effectively, provide certainty and give
us the flexibility we need to operate in all market conditions, we need to
maintain and build a long landbank with a good mix of long and short term land
opportunities. This has been one of the cornerstones of our success over the
years. Should Government initiatives prove successful in releasing extra volume
into the market, we will of course review our strategy and we are confident that
Persimmon is in an excellent position to react to any change in regulatory
environments.

SPACE4 AND SOCIAL HOUSING

We are excited by the benefits and opportunities emerging through the Westbury
Partnerships and Space4 businesses. We are supporting both these businesses with
our Group expertise and procurement strengths. We have given clear direction to
both these operations and by working closely together with Housing Associations
believe we can offer a solution to some of the affordable housing problems the
Government wishes to resolve.

Whilst there is still a way to go, we are pleased with the response we have
received to our initiative to provide a Modern Methods of Construction solution
to this problem. Already we are working closely on a number of land situations
with Housing Associations and associated land owners as well as refining house
types to supply the Space4 product to them at acceptable prices. We expect to
report further good progress with these initiatives in due course.

OUTLOOK

Visitor levels to our sites remain good whilst volumes of sales reservations and
revenues are ahead of last year on a like for like basis. Currently total sales
revenues for the year 2006 including completions to date are at an all time high
of c. £2.9 billion. In addition, we have c. 120 new outlets planned to open over
the next three months at a time when sales volumes usually increase following
the summer months. The high level of sales already achieved and the opening of
these new outlets puts us in a healthy position to achieve our volume
expectations for the full year. We do not however expect to see significant
selling price increases above those already realised this year. Therefore we are
redoubling our efforts to keep increases in build costs and overheads to a
minimum.

We have been encouraged by recent moves by the Government to improve the
planning process and we welcome the decision to reconsider the necessity for
full implementation of Housing Information Packs. The Bank of England's recent
decision to implement a quarter point rise in interest rates, effectively
reversing last August's cut, has had no tangible effect on our business or on
visitor levels or enquiries. These remain at healthy levels and employment
prospects remain good. For the majority of our homebuyers, decisions to move are
driven primarily by their family dynamics and therefore we expect this healthy
market to be sustainable.

Finally, I thank all our staff, new and old, for all their efforts, particularly
over the last few months during the integration period. I have no doubt that
thanks to their hard work we have a great platform for further profitable
growth.


22 August 2006                                  John White
                                                Group Executive Chairman



PERSIMMON PLC
Consolidated Income Statement (unaudited)

                                        Six months to Six months to     Year to
                                              30 June       30 June 31 December
                                     Note        2005          2006        2005
                                                   £m            £m          £m
-------------------------------------------------------------------------------
Revenue                                       1,550.0       1,093.0     2,285.7

Cost of sales                                (1,191.4)       (799.2)   (1,681.4)
-------------------------------------------------------------------------------

Gross profit                                    358.6         293.8       604.3

Operating expenses                              (49.8)        (42.0)      (76.5)
Share of results of jointly                       0.3             -           -
controlled entities
-------------------------------------------------------------------------------
Profit from operations before                   309.1         251.8       527.8
reorganisation costs

Reorganisation costs                            (15.4)            -           -
-------------------------------------------------------------------------------
Profit from operations                          293.7         251.8       527.8

Finance income                                    0.6           0.3         0.8
Finance costs                                   (38.2)        (17.2)      (33.2)
-------------------------------------------------------------------------------
Profit before tax                               256.1         234.9       495.4

Income tax expense                      6       (77.0)        (72.0)     (150.6)
-------------------------------------------------------------------------------
Profit after tax (all attributable to equity    179.1         162.9       344.8
holders of the parent)
-------------------------------------------------------------------------------
Earnings per share (after reorganisation costs)
Basic                                   7        60.7p         56.2p     118.4p
Diluted                                 7        60.3p         55.9p     118.0p

Earnings per share (before reorganisation costs, net of
related tax)
Basic                                   7        64.4p         56.2p     118.4p
Diluted                                 7        64.0p         55.9p     118.0p


PERSIMMON PLC
Consolidated Balance Sheet (unaudited)

                               Note      30 June      30 June   31 December
                                            2006         2005          2005
                                              £m           £m            £m
---------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets                          470.5        182.0         182.0
Property, plant and equipment               49.3         29.2          32.5
Investment in associates                       -            -         169.1
Investment in jointly                        3.4            -             -
controlled entities
Trade and other receivables                 11.2            -             -
Deferred tax assets                         63.9         32.1          33.3
---------------------------------------------------------------------------
                                           598.3        243.3         416.9
---------------------------------------------------------------------------

Current assets
Inventories                              2,973.2      2,138.1       2,197.9
Trade and other receivables                193.9         95.3         107.2
Cash and cash equivalents         5         39.3         96.1          10.7
---------------------------------------------------------------------------
                                         3,206.4      2,329.5       2,315.8
---------------------------------------------------------------------------
Total assets                             3,804.7      2,572.8       2,732.7
---------------------------------------------------------------------------

LIABILITIES
Non-current liabilities
Interest bearing loans and        5      (816.0)      (234.5)       (233.6)
borrowings
Forward currency swaps            5       (86.6)       (25.9)        (19.5)
Deferred tax liabilities                  (28.5)        (9.2)         (8.3)
Retirement benefit obligation             (91.6)       (66.8)        (73.5)
Other liabilities                        (108.7)       (59.0)        (61.5)
---------------------------------------------------------------------------
                                       (1,131.4)      (395.4)       (396.4)
---------------------------------------------------------------------------

Current liabilities
Trade and other payables                 (683.2)      (543.3)       (529.4)
Current tax liabilities                  (104.6)       (84.2)        (89.1)
Forward currency swaps            5        (2.8)        (1.4)         (1.4)
Interest bearing loans and        5       (50.2)       (16.3)        (24.4)
borrowings
---------------------------------------------------------------------------
                                         (840.8)      (645.2)       (644.3)
---------------------------------------------------------------------------
Total liabilities                      (1,972.2)    (1,040.6)     (1,040.7)
---------------------------------------------------------------------------
Net assets                               1,832.5      1,532.2       1,692.0
---------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Ordinary share capital issued               29.7         29.2          29.5
Share premium                              230.7        226.6         229.2
Own shares                                 (5.2)        (4.0)         (4.1)
Hedge reserve                             (12.5)          3.1           0.6
Consolidation reserve                      281.4        281.4         281.4
Retained earnings                        1,308.4        995.9       1,155.4
---------------------------------------------------------------------------
Total shareholders' equity               1,832.5      1,532.2       1,692.0
---------------------------------------------------------------------------



PERSIMMON PLC
Consolidated Cash Flow Statement (unaudited)

                                       Six months to  Six months to      Year to
                                             30 June        30 June  31 December
                                   Note         2006           2005         2005
                                                  £m             £m           £m
---------------------------------------------------------------------------------

Cash flows from operating activities:
Net profit after income taxes                  179.1          162.9        344.8

Adjustment for:
Tax                                             77.0           72.0        150.6
Finance income                                  (0.6)          (0.3)        (0.8)
Finance costs                                   38.2           17.2         33.2
Depreciation charge                              5.0            3.6          7.3
Amortisation of intangible assets                0.1              -            -
Share of results of jointly controlled          (0.3)             -            -
entities
Profit on disposal of property, plant           (0.5)          (0.2)        (0.4)
and equipment
Share-based payment charge                       2.5            1.0          2.0
Other non-cash items                            (4.0)           0.4         (0.4)
---------------------------------------------------------------------------------
Operating profit before working capital        296.5          256.6        536.3
changes

Changes in working capital:
Decrease/(increase) in inventories             158.7         (145.3)      (191.4)
Decrease/(increase) in trade and other          31.2            3.4         (8.5)
receivables
(Decrease)/increase in trade and other         (69.3)          25.2         10.2
---------------------------------------------------------------------------------
payables
Net cash from operations                       417.1          139.9        346.6

Interest paid                                  (27.6)         (13.5)       (25.8)
Interest received                                0.6            0.3          0.8
Tax paid                                       (62.2)         (70.3)      (144.5)
---------------------------------------------------------------------------------
Net cash from operating activities             327.9           56.4        177.1

Cash flows used in investing
activities:
Acquisitions                                  (508.5)             -       (169.1)
Purchases of property, plant and equipment      (5.3)          (4.3)       (11.1)
Proceeds from sale of property, plant            1.1            0.7          1.3
and equipment
---------------------------------------------------------------------------------
Net cash used in investing activities         (512.7)          (3.6)      (178.9)

Cash flows from/(used in) financing
activities:
Repayment of borrowings                       (237.1)          (1.6)       (26.2)
New loan facilities drawn                      487.3              -         10.0
Finance lease principal payments                (0.5)          (0.6)        (1.2)
Exercise of share options                        1.0            3.3          6.1
Dividends paid to Group shareholders           (40.0)         (38.2)       (58.6)
---------------------------------------------------------------------------------
Net cash from/(used in) financing              210.7          (37.1)       (69.9)
activities
---------------------------------------------------------------------------------
Increase/(decrease) in net cash and cash        25.9           15.7        (71.7)
equivalents                       4
---------------------------------------------------------------------------------

Net cash and cash equivalents at                 7.7           79.4         79.4
beginning of period
---------------------------------------------------------------------------------
Net cash and cash equivalents at end of         33.6           95.1          7.7
period                           5
---------------------------------------------------------------------------------


PERSIMMON PLC
Consolidated Statement of Recognised Income and Expense (unaudited)

                                          Six months to  Six months to      Year to
                                                30 June        30 June  31 December
                                                   2006           2005         2005
                                                     £m             £m           £m
-----------------------------------------------------------------------------------

Effective portion of changes in fair value        (18.7)          (3.0)        (6.5)
of cash flow hedges
Actuarial losses on defined benefit schemes       (16.2)             -         (7.6)
Taxation on items taken directly to equity         10.5            1.4          4.2
Net expense recognised directly in equity         (24.4)          (1.6)        (9.9)
-----------------------------------------------------------------------------------
Profit for the period                             179.1          162.9        344.8
-----------------------------------------------------------------------------------
Total recognised income for the                   154.7          161.3        334.9
period
-----------------------------------------------------------------------------------



Notes (unaudited)

1.  Accounting Policies

    This interim information has been prepared by applying the accounting
    policies and presentation that were applied in the preparation of the
    Group's published consolidated financial statements for the year ended 31
    December 2005, except for the following changes:

    The Group has assumed additional retirement benefit obligations following
    the acquisition of Westbury plc. The schemes have been stated at the
    present value of the obligation at the date of acquisition, less the fair
    value of the scheme assets. Further detail on the schemes will be
    presented in the financial statements for the year ending 31 December
    2006.

    Investment in jointly controlled entities is measured using the net equity
    method. The Group's share of the result of jointly controlled entities is
    credited/charged to the income statement. Exchange rate differences
    arising on translation are reflected in the income statement.


2.  Dividends

    The final dividend for 2005 of 19.0p (2004: 18.4p) was approved by
    shareholders during the period and a charge of £55.9m (2004: £53.1m) was
    taken to reserves.

    The directors propose an interim dividend of 13.8p (2005: 12.0p). No
    charge has yet been made for this dividend in accordance with IAS 10
    (Events After the Balance Sheet Date).


3.  Business Combinations

    On 17 January 2006 the Group acquired the entire issued share capital of
    Westbury plc for a total consideration, including preliminary investment at
    24 November 2005, of £664.0m. This consideration was satisfied by cash of
    £650.6m and loan notes of £13.4m. The fair value of the loan notes at
    issuance was equal to face value. Westbury was a UK housebuilder with the
    bulk of its operations being in the south of England and Wales.

    In the period to 30 June 2006 the acquired business contributed £370.6m of
    revenue and £64.5m to gross profit. If the acquisition had occurred on 1
    January 2006, the estimated revenue would have been £375.5m with gross
    profit of £66.2m.


    Effect of the acquisition

    The acquisition had the following effect on the Group's assets and
    liabilities:

Acquiree's net assets at the acquisition date                     
                                                                  Provisional
                                                  Book Value       Fair Value
                                                          £m               £m
------------------------------------------------------------------------------

Intangible assets                                      43.1              61.9
Property, plant and equipment                          17.3              16.8
Investment in jointly controlled entities               3.1               3.1
Deferred tax assets                                    13.5              30.0
Inventories                                           944.6             933.8
Cash                                                  104.3             104.3
Bank overdrafts                                      (131.3)           (131.3)
Bank loans                                           (370.4)           (370.4)
Forward currency derivatives                          (24.5)            (24.5)
Other receivables and payables                        (94.9)           (126.4)
Retirement benefit obligation                         (38.4)            (38.4)
Deferred tax liabilities                               (2.2)            (21.7)
-----------------------------------------------------------------------------
Net assets                                            464.2             437.2
Goodwill on acquisition                                                 226.8
-----------------------------------------------------------------------------
Consideration paid (including costs)                                    664.0

Loan notes issued as consideration                                      (13.4)
Net cash and cash equivalents                                            27.0
acquired
Existing investment in Westbury plc shares                             (169.1)
-----------------------------------------------------------------------------
Net cash outflow in period                                              508.5
-----------------------------------------------------------------------------

    At 30 June 2006 the fair values of the assets and liabilities acquired
    noted above are provisional.

    During the period the Group acquired the remaining 50% interest in
    Wescott Holdings Limited.


4.   Reconciliation of Net Cash Flow to Net Debt

                                    Six months to Six months to       Year to
                                          30 June       30 June   31 December
                                             2006          2005          2005
                              Note             £m            £m            £m
-----------------------------------------------------------------------------

Increase/(decrease) in net cash and          25.9          15.7         (71.7)
cash equivalents
(Increase)/decrease in debt and            (263.1)          2.2          17.4
finance leases
-----------------------------------------------------------------------------
(Increase)/decrease in net debt from       (237.2)         17.9         (54.3)
cash flows
Net debt acquired                          (394.9)            -             -
New finance leases                           (0.4)         (0.8)         (1.4)
Non-cash movements                          (15.6)         (2.9)        (16.3)
-----------------------------------------------------------------------------
(Increase)/decrease in net debt            (648.1)         14.2         (72.0)
Net debt at beginning of period            (268.2)       (196.2)       (196.2)
-----------------------------------------------------------------------------
Net debt at end of period        5         (916.3)       (182.0)       (268.2)
-----------------------------------------------------------------------------


5.   Analysis of Net Debt

                                           30 June       30 June   31 December
                                              2006          2005          2005
                                  Note          £m            £m            £m
------------------------------------------------------------------------------

Cash and cash equivalents                     39.3          96.1          10.7
Bank overdrafts                               (5.7)         (1.0)         (3.0)
------------------------------------------------------------------------------
Net cash and cash equivalents                 33.6          95.1           7.7
Bank loans due after more than one year     (230.0)            -         (10.0)
US/UK senior loan notes due within one       (18.6)        (14.3)        (20.2)
year
US/UK/EU senior loan notes due after more   (584.7)       (233.0)       (222.3)
than one year
Other loan notes                             (24.8)            -             -
Forward currency swaps                       (89.4)        (27.3)        (20.9)
Finance leases                                (2.4)         (2.5)         (2.5)
------------------------------------------------------------------------------
Net debt at end of period 4                 (916.3)       (182.0)       (268.2)
------------------------------------------------------------------------------


6.   Taxation

     Taxation has been calculated at 30.0% of profit before taxation (six
     months to 30 June 2005: 30.6% and year ended 31 December 2005: 30.4%).
     This is the estimated effective tax rate for the year to 31 December
     2006.

7.   Earnings Per Share

     Basic earnings per share is calculated by dividing the earnings
     attributable to ordinary shareholders of £179.1m (£190.0m before
     reorganisation costs of £15.4m, net of related tax of £4.5m) (six months
     to 30 June 2005: £162.9m and year ended 31 December 2005: £344.8m) 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 period was 295,189,559 (30 June 2005:
     289,689,694 and 31 December 2005: 291,120,186).

     For diluted earnings per share, the weighted average number of ordinary
     shares in issue is adjusted to assume conversion of all potentially
     dilutive 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
     296,966,396 (30 June 2005: 291,318,992 and 31 December 2005:
     292,236,493).

8.   Basis of Preparation

     The figures for the half years to 30 June 2006 and 30 June 2005 are
     unaudited. The figures included in the Income Statement for the year to
     31 December 2005, the Balance Sheet at 31 December 2005, the Cash Flow
     Statement for the year to 31 December 2005 and the Statement of
     Recognised Income and Expense for the year to 31 December 2005 are
     extracts from the latest published accounts which have been delivered to
     the Registrar of Companies. The report from the auditors on those
     accounts was (i) unqualified, (ii) did not include a reference to any
     matters which the auditors drew attention to without qualifying their
     report, and (iii) did not contain a statement under section 237 (2) or
     (3) of the Companies Act 1985.

9.   The Interim Report was approved by the Board of Directors on 21 August
     2006 and is being sent to all shareholders. Further copies are available
     upon request from the Company Secretary, Persimmon plc, Persimmon House,
     Fulford, York YO19 4FE.


Further information about the Group can be found on the Persimmon website at:
www.persimmonhomes.com



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