Persimmon PLC (LSE:PSN) kept its dividend flat as it reported double-digit growth in first-half profits and completions but flagged signs of softer demand in the second half.
The FTSE 100 housebuilder posted interim results showing underlying operating profit rose 10% to £189.1 million, although the margin narrowed by 30 basis points to 12.8%. Statutory pre-tax profit climbed 15% to £168 million.
Almost 5,190 home sales were completed in the six months to 30 June, up from 4,605 a year earlier. New housing revenue increased 13% to £1.48 billion, while the average selling price edged 1% higher to £285,752.
Management expects to deliver around 12,500 homes in the full year, putting its forecast at the upper end of the 12,000-12,500 range given in April.
Persimmon's recent trading suggested some cooling in the open market. The net private sales rate excluding bulk deals fell to 0.59 from 0.61 in the five weeks since June, while weaker enquiries were seen during July.
The overall sales rate, including bulk transactions, rose 6% to 0.72, while the private forward order book increased 5% to £1.31 billion.
Net debt stood at £165 million at the end of June, against net cash of £123 million a year earlier. The interim dividend was held at 20p.
Chief executive Dean Finch said: "Market conditions remain challenging, with affordability constraints and build cost pressures affecting the sector."
He said Persimmon's response was to focus on driving operational efficiencies, with the group's "disciplined land buying, industry-leading cost efficiency and vertically integrated operating platform [giving] us important structural advantages as we seek to mitigate cost pressures and support growth".
Guidance for underlying pre-tax profit was maintained in line with market expectations, but Finch warned of "additional inflationary pressure in 2027".
This includes headwinds from the Middle East conflict, though the medium-term ambition to achieve a 20% housing operating margin and 20% return on capital remained.
