Persimmon PLC (LSE:PSN) has said full-year profit should meet the high end of market expectations thanks to above-target completions and new house sale prices in 2024.
Underlying operating pre-tax profit is expected to sit at the upper end of the £349 million to £390 million range, the FTSE 100-listed housebuilder updated on Tuesday.
Completions over the year had climbed 7% to 10,664, while average selling prices increased by 5% to around £268,500, aided by improving market conditions.
For 2025, forward sales were up by 8% at £1.15 billion, with average selling prices around £276,850.
“Persimmon has worked hard and is well positioned for the future, supported by the land and planning investment we have made in recent years,” chief executive Dean Finch said.
“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.”
Margins for 2024 were said to be similar to the previous year’s 14.0%, while year-end net cash was above expectations at £260 million, Persimmon added.
However, Persimmon also pointed to uncertainty around the likes of future rate cuts, with housebuilders having faced pressure most recently around the effects of growing gilt years on mortgages.
“We are mindful of evolving macroeconomic and geopolitical uncertainties,” it said, “including the timing of future interest rate changes”.
”The strength of our land bank and our focus on cost control and efficiency continue to differentiate the business as we manage sector-wide challenges, including expected low single-digit build cost inflation, the effects of the national insurance increase and regulatory changes such as to stamp duty.”
Shares climbed 4.4% on Tuesday.