Persimmon Plc has announced a trading update ahead of its final results for the year ending 31st December 2024, with new home completions increasing by 7%.
The results are scheduled for release on 11th March 2025.
The company expects its underlying profit before tax to be around the upper end of market expectations.
For 2024, new home completions reached 10,664, up from 9,922 in 2023.
The average selling price rose by 5% to approximately £268,500 from £255,752, while sales outlets increased to 270, compared to 258 last year.
However, cash at the end of December fell to approximately £260m from £420m.
The forward sales position has improved by 8% to £1,146m, with private forward sales up 31% to £653m.
Land holdings, comprising plots owned and under control, remained stable at approximately 82,100, down slightly from 82,235.
Dean Finch, group chief executive of Persimmon, said: “We performed well through 2024 delivering 7% growth in completions, ahead of market expectations.
“We expect to report an underlying operating margin in line with the prior year, as previously guided, with 2024 underlying profit before tax expected to be around the upper end of market expectations.
“Customer enquiries and sales rates have been consistently ahead of the prior year since the spring selling season.
Finch added: “Persimmon has worked hard and is well positioned for the future, supported by the land and planning investment we have made in recent years, our vertical integration capabilities and our excellent teams.
“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.
He said: “I want to extend my gratitude to our colleagues, subcontractors and suppliers for their dedication and support.
“Their efforts have been instrumental in keeping Persimmon well-placed to provide high-quality, sustainable homes at affordable prices to customers across the UK.”
Oli Creasey, property analyst at Quilter Cheviot, said: “Persimmon’s trading update this morning was largely positive, and notable for recovery in sales volume and profit before tax in 2024, both of which are likely to be ahead of market expectations.
“The company has guided towards the top end of its profit expectations and has also beaten expectations in terms of net cash on balance sheet.
“Persimmon noted that there are already strong levels of enquiries in 2025, and the forward order book is larger than this time last year.
“However, management has acknowledged the uncertainty caused by geopolitical and macroeconomic factors, which may dampen customers’ interest in the short-term.
“The update is a reassuring one for investors, who will be pleased to see that the recovery is well underway.”
He said: “However, it ought to be seen in the wider context; while volumes are improving, the 2024 figure is still approximately 25% below the typical volumes achieved in the years prior to 2023.
“Likewise, while profit has increased, Persimmon’s management has guided to an unchanged profit margin.
“Margins in the mid-teens are expected, which are approximately half of what they were just a few short years ago. The recovery continues, but still has a long way to go.”
