Persimmon plc has posted its final results for 2024, highlighting growth in a number of key areas.
New home completions rose by 7% to 10,664, and the average selling price of homes increased by 5% to £268,499.
The company reported a 13% increase in new housing revenue to £2.86bn, alongside a 14% improvement in underlying operating profit to £405.2m.
Cash at the end of the year stood at £258.6m, down from £420.1m in 2023.
Operationally, Persimmon saw a 5% rise in selling outlets, reaching 270 by year-end.
Its current private forward sales position increased by 27% to £1.15bn.
Customer satisfaction improved, hitting a score of 96.0%, with Persimmon maintaining a five-star Home Builders Federation (HBF) rating.
The company also achieved planning consent for 13,064 plots, marking a 21% increase.
Dean Finch, group chief executive of Persimmon, said: “Persimmon’s disciplined investment and significant operational improvements in recent years has created a stronger business.
“This is demonstrated by our growth in 2024, with completions, outlets and profit all up.
“The underlying market fundamentals remain strong and we are encouraged by the further improvement in our sales rates in the early weeks of this year.”
Finch added: “The Government’s welcome planning reforms and pro-housebuilding agenda demands more of the high-quality, affordable homes which are Persimmon’s core strength, providing a positive tailwind.
“With our strong platform in place, we are targeting further growth this year and are confident the business will grow margins, returns and shareholder value over the medium term.”
Oli Creasey, property analyst at Quilter Cheviot, said: “Persimmon’s full-year results reflect improving conditions in the housing market.
“House prices and sale volumes saw notable increases in 2024 compared to 2023, with prices up by 5% and volumes by 7%.
“Although these figures are still below the levels seen before the interest rate rises of 2022, the recovery is clearly underway.”
Creasey added: “Looking ahead, Persimmon’s guidance for 2025 is optimistic, targeting 11,000 to 11,500 sales, which represents a 5% increase compared to 2024.
“The performance year-to-date has been particularly strong, with sales rates up by 14% and prices increasing by 3% compared to the same period last year.
“Persimmon’s operating margin remained stable at 14% in 2024, similar to 2023.
“Management is aiming for a medium-term margin of 20%. While this target may not be achieved in 2025, it remains a reasonable goal for the medium term.”
