Persimmon PLC (LSE:PSN) has maintained its guidance for 2025 completions and margins, while acknowledging the housing market still faces cost and affordability pressures.
The UK housebuilder expects to deliver between 11,000 and 11,500 new homes this year, with a housing operating margin of 14.2% to 14.5%. That comes despite management warning of potential headwinds from geopolitical uncertainty, the forthcoming Budget, and increased industry costs.
In the six months to 30 June, completions rose 4% to 4,605, with private sales up 7%. Revenue from new housing climbed 12% to £1.31 billion, helped by an 8% rise in the average selling price to £284,047.
Underlying operating profit increased 13% to £172 million, while the statutory pre-tax profit was broadly unchanged at £146.7 million.
The forward sales position at the end of June was £1.25 billion, up 11% on last year, with an average selling price just under £293,000.
Persimmon also lifted the number of sales outlets to 277, moving closer to its 300-outlet target, and invested £210 million in new land at what it described as “excellent margins”.
Looking ahead, the group aims to grow volumes to around 12,000 units in 2026, though it cautioned that the pace of margin improvement could slow as cost inflation eases and affordability constraints persist.