Persimmon PLC (LSE:PSN) has already signalled strong trading for the year just gone, leaving focus in next Tuesday, 11 March’s result on its outlook as uncertainty clouds the housing sector.
Completions grew 7% to 10,664 in 2024, Persimmon said in January, outdoing market expectations.
Average selling prices had also increased, it added, leaving underlying pre-tax profit on course to hit the high end of forecasts for £349 million to £390 million.
Given figures have largely been detailed, and subsequently drawn an upgrade by Deutsche Bank and ‘top pick’ status by Jefferies, guidance should take precedence.
Forward orders had improved into 2025, Persimmon said last time out.
However, April’s stamp duty hike, confirmed in last October’s Budget, has threatened the sector, prompting warnings over muted demand in the new tax year.
Coupled with subdued consumer confidence, alongside well-flagged fears around inflation, eyes will be on Persimmon’s forward-looking statements.
“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,” it had noted.
“[These include] expected low single digit build cost inflation, the effects of the national insurance increase and regulatory changes such as to stamp duty and the proposed Building Safety Levy.”