Persimmon PLC (LSE:PSN) kept its dividend unchanged despite profits more than halving last year.
Insisting it is “well placed to manage the ongoing uncertainty”, the housebuilder added that 2024 would be another challenging year for the industry.
The FTSE 100-listed group's profit before tax fell to £351.8 million for the 2023 calendar year, down 52% from the previous year.
It had previously revealed that completed housing sales fell 33% to 9,922 and that average selling prices increased 5% to £285,770, which meant revenue fell 27.5% to £2.77 billion.
Cash in the bank stood at £420.1 million at the end of December, just under half the level from a year earlier, with a negative cash flow from operations of £129.8 million.
A final dividend of 40p per share was declared, to be paid in July, making for a full-year payout of 60p, the same a year ago.
Persimmon said its board's intention is to “at least maintain” the dividend at the same level in 2024, “with a view to growing this over time as market conditions permit”.
The company said it expects market conditions to “remain subdued throughout 2024”, saying the Bank of England’s interest rates are likely to remain around current levels and with a general election due some time before next January.
It also faces a probe into suspected anti-competitive behaviour from the Competition & Markets Authority, along with seven sector rivals.
Net cash is expected to fall to between zero and £200 million by the end of 2024, with a transition from an average net cash to an average net debt position anticipated.
Chief executive Dean Finch said: “Although the near-term outlook remains uncertain, the significant pent-up demand for homes remains unchanged.”
He said the company is “well placed” to meet demand with houses offering different price ranges below the market average, with completions expected to increase to between 10,000 and 10,500 for 2024.
Housing operating margins are guided to remain in line with 2023, with build cost inflation around 3-5%.