Persimmon (PSN) H1 2024 earnings summary

Executive summary

• Delivered 4,445 home completions in H1 2024, up 5% year-over-year, with private completions up 14%.

• Operating profit rose 2% to £149m; underlying operating profit flat at £152.3m; operating margin at 13%.

• Forward order book at 30 June 2024 reached £1.4bn, up 3% year-over-year and 34% since December.

• Maintained five-star customer satisfaction above 96% for the third year.

• Strong landbank of 81,545 plots, with 38,067 owned with detailed planning; 266 selling outlets at 30 June 2024.

Financial highlights

• Group revenue increased 11% to £1.32bn; new housing revenue up 7% to £1.17bn.

• Underlying operating profit: £152.3m; reported operating profit: £149.4m; profit before tax: £146.3m, including £2m net exceptional charges.

• Net cash at period end: £350m; cash from operations at £165m; £195m invested in land.

• Interim dividend maintained at 20p per share; net assets per share at 1,066p, up 1% year-over-year.

• Underlying housing gross margin: 20.1%; underlying operating margin: 13.0%.

Outlook and guidance

• Full-year completions expected at c.10,500, at the top end of previous guidance.

• Full-year margin expected to be in line with last year; net cash forecasted at £100m–£200m by year-end.

• Land spend guidance maintained at £300m–£500m; confident in further outlet and volume growth into 2025.

• Board intends to maintain at least the 2023 dividend of 60p per share.

• Building safety remediation spend for 2024 expected to be around £90m.