Persimmon confirms home completion outlook, saw no big impact from macro headwinds

Published 05/01/2025, 03:52 AM
© Reuters.

Investing.com -- Persimmon (LON:PSN) said it remains on track to meet its full-year target of 11,000 to 11,500 home completions, noting no material impact so far from geopolitical or macroeconomic uncertainty on consumer sentiment, sales activity, or its supply chain.

The U.K. homebuilder reported a 3% increase in its sales rate excluding bulk transactions for the first four months of 2025, reaching 0.65, while the rate including bulk sales rose 1% to 0.74. Positive momentum seen early in the year has continued, the company said.

Forward sales strengthened, with private sales up 17% in value and 12% in volume year-over-year to £1.68 billion and 5,714 units, respectively.

Pricing also remains firm, with incentive levels averaging 4%. Persimmon said this was a blended increase in pricing, which Morgan Stanley analysts think "implies a more robust increase in private homes."

The group opened 27 new outlets year-to-date, bringing its current total to 275, up 5% from last year. It expects to reach at least 300 outlets in the medium term.

Persimmon said it is pleased with performance so far in 2025 and anticipates a similar first-half/second-half completions split as last year, while remaining cautious amid a still-uncertain external environment.

"Persimmon’s presence with first-time buyers is one of the highest among U.K. peers, plus the most affordable products, which should benefit from improved affordability over the midterm," said Bank of America analysts in a note. "However, we still see some uncertainties about the pace of near-term margin expansion given overall cost inflation."

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.