Persimmon (PSN) H2 2024 earnings summary

Executive summary

• Achieved strong growth in 2024 with underlying profit before tax up 10% to £395 million and completions up 7% to 10,664 units.

• Blended average selling price increased 5% to £268,500, driving housing revenue up 13% and gross profit up 12%.

• Underlying earnings per share rose 12% to 92.1 pence, and return on capital employed improved to 11.1%.

• Customer satisfaction reached 96%, with HBF 8-week score at 96% and Trustpilot at 4.5 stars.

• Forward order book rose 12% to £1.7 billion, with private forward orders up 27% to £1.15 billion.

Financial highlights

• Underlying operating margin increased to 14.1%, ahead of consensus, despite inflation impacts.

• Net cash at year-end was £259 million, with gearing below 5%.

• Net cash generation of £89 million before fire remediation and dividends; £192 million paid in dividends.

• Net asset value per share increased to 1,096 pence; ROE at 8.5% and ROCE at 11.1%.

• Building safety provision reduced to £235 million after £58 million spent on remediation in 2024.

Outlook and guidance

• 2025 guidance: completions expected at 11,000–11,500 units and operating margin 14.2–14.5%.

• Net land spend projected at £350–£550 million; net cash expected between £nil and £200 million.

• Continued planned investment into new land and outlets, assuming stable macro conditions.

• H1/H2 completion weighting to mirror 2024.

• Medium-term targets: margin and ROCE over 20%.