Persimmon sees FY profit at upper end of expectations

(Sharecast News) - Persimmon said on Tuesday that full-year underlying pre-tax profit was set to be around the upper end of market expectations as completions were ahead of market forecasts. In an update ahead of final results for the year to the end of December, the housebuilder said completions rose 7% on the previous year to 10,664 homes. This was driven by an 18% jump in private home completions to 9,075, with 1,589 partnership homes delivered in the period, up from 2,241.

Meanwhile, the average selling price ticked up 5% to around £268,500. Persimmon said pricing improved as the year progressed, largely due to mix, but also reflecting "improving market conditions".

The company's forward sales position increased 8% to £1.15bn.

It now expects full-year underlying pre-tax profit for 2024 to be around the upper end of market expectations of £349m to £390m, with underlying operating margins similar to the prior year, in line with previous guidance.

Chief executive Dean Finch said: "Customer enquiries and sales rates have been consistently ahead of the prior year since the spring selling season.

"Persimmon has worked hard and is well positioned for the future, supported by the land and planning investment we have made in recent years, our vertical integration capabilities and our excellent teams. This investment, coupled with the government's ambitious planning reforms which demand more of the high-quality, affordable homes which are Persimmon's core strength, supports our growth ambitions in the medium-term."