RACHAEL WARING | PANMURE GORDON
Persimmon delivered a confident but prudent presentation at today’s analysts meeting. In our view, despite ongoing challenging market conditions, the group will continue to deliver increased profitability, primarily driven by improving net margins... though our 2012 forecasts remain conservative for now.
CHRIS MILLINGTON | NUMIS
Persimmon's results are better than expected mainly due to a lower than expected finance charge. With the sharp fall in the share price in the last couple of weeks and progress in the net asset value, the company is trading on 0.72x tangible NAV, which is low given we forecast ROCE to hit double digit levels in 2012.
SIMON BROWN | NORTHLAND CAPITAL
The run of improving margins through self-help is seen continuing well into 2012 as more higher-margin sites replace old underperforming outlets. The consensus forecast predicts around £129m pre-tax for the year up from 2010’s £91m. There is a real opportunity now for Persimmon to demonstrate its land potential.