Housebuilder Persimmon (PSN) raised its profit guidance for 2025 after new home completions came in ahead of expectations.
Completions were 11,905 last year, up 12% on 2024 and 5% above the consensus estimate of 11,293 units.
Private home completions were up 8% to 9,830 units, while the average private selling price increased 5% to £301,000.
Partnership home completions were 2,075 units, up 30%, with a 4% increase in the average selling price to £168,000.
As a result, underlying pre-tax profit for 2025 is seen around £440 million which is the top end of market forecasts.
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SIGNS OF POSITIVITY
The group noted an improvement in net weekly private sales, with private forward sales up 4% by value to £680 million.
Meanwhile, chief executive Dean Finch said the firm entered 2026 with a robust order book.
While the firm isn’t expecting a material improvement in demand, it is seeing some positive signs.
Its Boxing Day sales campaign generated interest, and further cuts to mortgage rates are helpful for potential buyers.
Not a blow-out report from Persimmon but probably enough to keep the home fires burning for bulls of the sector.
The firm did let slip it expected fewer partnership sales this year for various reasons so completions may not be as strong.
It also flagged rising regulatory costs, for example landfill levies which will double from April.
Later this week we have trading updates from Vistry (VTY) and Taylor Wimpey (TW.) so plenty to mull over.
Read the press release here: https://www.persimmonhomes.com/corporate/investors/
See here for related news: https://sharesify.com/positive-tone-sparks-persimmon-rally/
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