Persimmon (PSN) Q4 2024 TU earnings summary

Executive summary

• Delivered strong 2024 results with completions up 7% to 10,664 and private completions up 18%, surpassing market expectations.

• Average selling price (ASP) grew 5% to £268,500, with private ASP at £287,150 and consistent quarter-on-quarter growth.

• Positioned for future growth through investments in land, planning, and vertical integration, opening over 100 outlets and renewing 40% of the business.

• Ended the year with £260 million net cash after significant investments and shareholder returns.

• Forward sales position improved 8% to £1.15bn, with private forward sales up 31% to £653m.

Financial highlights

• Profit before tax (PBT) expected at the upper end of consensus expectations (£349m–£390m), with stable operating margin.

• £440 million spent on new land; detailed or reserved matters achieved on about 13,050 plots, up 21% year-over-year.

• Returned £192 million to shareholders and spent £60 million on building safety remediation.

• Private ASP in the order book is just under £277,000, about 4% higher than last year.

• Net land spend was approximately £440m, including £210m for land creditor settlements.

Outlook and guidance

• Entered 2025 in a strong position with higher forward order book and robust pipeline of land opportunities.

• Costs are well controlled; projecting low single-digit build cost inflation due to regulatory changes.

• No explicit margin guidance for 2025 yet; margin growth expected to be slow due to embedded inflation from 2022-2023.

• Targeting a return to 300 outlets over the medium term, supported by planning reforms and NPPF changes.