Annual Report 2021
PLACING CUSTOMERS AT THE HEART
OF OUR BUSINESS
Contents
1-75
STRATEGIC REPORT
01 | Our mission | 20 | Group Chief Executive's Statement |
02 | At a glance | 26 | Our strategic objectives |
04 | Our integrated approach | 50 | Financial review |
06 | Chairman's statement | 54 | How we manage risk |
08 | The UK housing market | 55 | Our principal risks |
10 | Our business model | 62 | Task Force on Climate Related Financial |
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 |
76-132
GOVERNANCE
Directors' Report
76 Chairman's introduction to Corporate Governance
78 Board leadership
80 Corporate Governance Statement
90 Nomination Committee Chair's statement
92
Nomination Committee Report
98 Audit Committee Chair's Statement
100 Audit Committee Report
105 Other disclosures
Remuneration
108 Remuneration Committee
Chair's Statement
112 Remuneration at a glance
114 Annual Report on Remuneration
129 Summary of Directors'
Remuneration Policy
133-181
FINANCIAL STATEMENTS
133 Statement of Directors' Responsibilities
134 Independent Auditor's Report
140 Consolidated Statement of Comprehensive Income
141 Balance Sheets
142 Statement of Changes in Shareholders' Equity
144 Cash Flow Statements
145 Notes to the Financial Statements
182-183
OTHER INFORMATION
182
Shareholder Information
182 Financial Calendar 2022
182
Five Year Record
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 homes soldAverage selling priceConstruction and supply chain jobs supported1
Investment in 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 holdings (plots)Current customer satisfaction score3
Build quality3
Environment: our homes in use by 2030 will be
67,089
92.0%
2020: 67,205
2020: 89.7%
87.9%
NET ZERO
2020: 84.7%
1. Estimated using an economic toolkit.
2. 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.
3. 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.
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.
TheCharlesChurchbrandcomplements 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.
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
Average selling price 2021
Average selling price 2021
£249,498
£360,575
£131,976
2020: £239,318
2020: £361,147
2020: £125,930
Persimmon Homes, see page 30
Charles Church, see page 30
Westbury Partnerships, see page 31
Contribution to Group housing revenue
Persimmon HomesCharles ChurchWestbury Partnerships
Homes sold
17%
Landholdings
National coverage, local presence
We have 31 operating businesses across the UK
Read more on our office locations on our website
INVESTING IN INNOVATION AND TECHNOLOGY
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
FibreNest
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 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
High quality land holdings.
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.
UK wide outlet network.
Investing in our people, resources and capabilities to drive superior performance.
Highly experienced management team.
Strong focus on sustainability with clear targets.
Vertical integration providing security of supply over certain key material components.
Drive industry leading performance through entrepreneurship, innovation and cost-efficiency.
Read more atwww.persimmonhomes.com/ corporate/investors/investment-case/
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Persimmon plc published this content on 01 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 April 2022 10:43:04 UTC.