Annual Report 2021
PLACING CUSTOMERS AT THE HEART
OF OUR BUSINESS
Persimmon Plc | Annual Report | December 2021
Contents
1-75 | 01 | Our mission | 20 | Group Chief Executive's Statement |
02 | At a glance | 26 | Our strategic objectives | |
STRATEGIC | 04 | Our integrated approach | 50 | Financial review |
06 | Chairman's statement | 54 | How we manage risk | |
REPORT | ||||
10 | Our business model | 62 | Task Force on Climate Related Financial | |
08 | The UK housing market | 55 | Our principal risks | |
12 | Our strategic objectives and five | Disclosures (TCFD) | ||
key priorities | 67 | Climate change risks and opportunities | ||
14 | Our key performance indicators (KPls) | 68 | Viability statement | |
17 | Our sustainability approach | 70 | Section 172 statement | |
18 | Sustainability Accounting Standards | 75 | Non-financial information statement | |
Board (SASB) disclosures |
12 | 17 | 26 |
DELIVERING ON | OUR SUSTAINABILITY | PLACING |
OUR FIVE KEY | PILLARS | CUSTOMERS AT |
PRIORITIES | THE HEART OF | |
OUR BUSINESS | ||
Read more | Read more | Read more |
on page 12 | on page 17 | on page 26 |
76-132
GOVERNANCE
Directors' Report | Remuneration | ||
76 | Chairman's introduction | 108 | Remuneration Committee |
to Corporate Governance | Chair's Statement | ||
78 | Board leadership | 112 | Remuneration at a glance |
80 | Corporate Governance Statement | 114 | Annual Report on Remuneration |
90 | Nomination Committee | 129 | Summary of Directors' |
Chair's statement | Remuneration Policy | ||
92 | Nomination Committee Report |
- Audit Committee Chair's Statement
- Audit Committee Report
- Other disclosures
133-181
FINANCIAL STATEMENTS
- Statement of Directors' Responsibilities
- Independent Auditor's Report
- Consolidated Statement of Comprehensive Income
- Balance Sheets
- Statement of Changes in Shareholders' Equity
- Cash Flow Statements
- Notes to the Financial Statements
182-183
OTHER INFORMATION
- Shareholder Information
- Financial Calendar 2022
- Five Year Record
Strategic report | Governance | Financial statements | Other information |
Our mission
To build homes with quality our customers can rely on at a price they can afford.
"We have recently launched our Mission, Vision and Values. They build on Persimmon's many strengths and our recent progress to strive even higher, to be Britain's leading homebuilder, with core values that demonstrate how we will achieve it. I am delighted that our values have been warmly embraced across the business and look forward to delivering on the ambition they set out."
DEAN FINCH
Group Chief Executive
Read more on our mission, vision and values on pages 4 & 5
Highlights
Number of | Average | Construction and supply | Investment in | |||||||||
homes sold | selling price | chain jobs supported1 | local communities2 | |||||||||
14,551 | £237,078 | c.92,000 | c.£2.6bn | |||||||||
2020: 13,575 | 2020: £230,534 | 2020: c.86,000 | over the last six years | |||||||||
Owned land | Current customer | Build | Environment: our homes | |||||||||
holdings (plots) | satisfaction score3 | quality3 | in use by 2030 will be | |||||||||
67,089 | 92.0% | 87.9% | NET ZERO | |||||||||
2020: 67,205 | 2020: 89.7% | 2020: 84.7% |
- Estimated using an economic toolkit.
- The value of homes delivered to housing associations, the value of Discounted Open Market Value Housing plus the value of planning contributions we have made.
- We participate in a National New Homes Survey run by the Home Builders Federation (HBF). The Survey year covers the period from 1 October to 30 September. The customer satisfaction rating system is based on the number of customers who would recommend their builder to a friend. The build quality score is based on how satisfied customers are with the quality of their new home.
01
Persimmon Plc | Annual Report | December 2021
At a glance
BUILDING SUSTAINABLE
AND INCLUSIVE COMMUNITIES ACROSS THE UK
We are a leading national homebuilder. We have three brands,
three off-site manufacturing facilities, and an ultrafast full fibre broadband service, delivering high quality homes to serve local communities.
Persimmon Homes is our core brand which delivers a range of traditional family housing throughout the UK in places where customers wish to live and work. With a focus on delivering value and quality for our customers, we sell most of our homes under this brand.
Average selling price 2021
£249,498
2020: £239,318
Persimmon Homes, see page 30
The Charles Church brand complements and differentiates itself from Persimmon by delivering larger, higher specification homes in premium locations across the UK. We build homes under this brand tailored to local markets where our research and experience has identified a strong demand for a premium product.
Average selling price 2021
£360,575
2020: £361,147
Charles Church, see page 30
Westbury Partnerships is our brand with a focus on affordable social housing. We sell these homes to housing associations across the UK. This brand plays a key part in the delivery of sustainable homes for the benefit of lower income occupiers, offering solutions to some of the country's affordable housing needs.
Average selling price 2021
£131,976
2020: £125,930
Westbury Partnerships, see page 31
Contribution to Group housing revenue | National coverage, local presence |
10% | |
11% | |
79% | £3.4bn |
Persimmon Homes
Charles Church
Westbury Partnerships
Homes sold | We have 31 operating businesses | |
17% | across the UK | |
Read more on our office | ||
locations on our website | ||
7% | 19% | |
76% | 9% | |
72% | ||
Landholdings | Northern offices | |
Southern offices
Off-site manufacturing
02
Strategic report | Governance | Financial statements | Other information |
INVESTING IN INNOVATION AND TECHNOLOGY
Our average SAP rating
87%
Tileworks
Tileworks, the Group's own concrete roof tile manufacturing facility, produces tiles solely for the Group. During the year, Tileworks supplied c.9m tiles to 227 sites across the Group.
Tiles supplied
to the Group in 2021
c.9m
Brickworks
Brickworks produces concrete bricks and is entirely focused on supplying the Group's housebuilding operations. During 2021, the brickworks supplied c.45m bricks to the Group. The factory has the capacity to produce c.80m bricks a year, which approximates to two thirds of the Group's brick requirements.
Bricks supplied to the Group in 2021
c.45m
Space4
Our Space4 manufacturing business produces timber frames, highly insulated wall panels and roof cassettes as a 'fabric first' solution to the construction of new homes. Space4's modern method of construction system helps us to improve site productivity, increase build capacity and mitigate construction industry skills shortages. Space4 supports all of our brands and supplied 4,315 timber frame kits and roof systems
to the Group in 2021.
Homes built
using timber frames
33%
FibreNest
FibreNest is the Group's own ultrafast, nationwide full fibre broadband service to the home, which aims to ensure all our customers are connected to the internet from moving in day. FibreNest provides ultrafast speeds coupled with excellent levels of service.
OUR INVESTMENT CASE
Persimmon is one of the UK's leading homebuilders, with high quality land holdings, a strong balance sheet and a highly experienced management team. We are well positioned in our market, providing high quality homes at attractive prices for our customers.
Read more at www.persimmonhomes.com/ corporate/investors/investment-case/
High quality land holdings.
UK wide outlet network.
Highly experienced management team.
Vertical integration providing security of supply over certain key material components.
Investing in our people, resources and capabilities to drive superior performance.
Strong focus on sustainability with clear targets.
Drive industry leading performance through entrepreneurship, innovation and cost-efficiency.
03
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Persimmon plc published this content on 23 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 March 2022 11:36:08 UTC.