Persimmon (PSN) Trading Update summary

Financial performance and trading update

• Home completions grew over 7% to 10,664, with private completions up 18% and sales rates up 21% to 0.7 per outlet per week; blended ASP rose 5% to £268,500, with private ASP at £287,150, and PBT expected at the upper end of £349m–£390m range.

• Net cash at year-end was £260 million after investing £440 million in new land, returning £192 million to shareholders, and spending £60 million on building safety remediation.

• Forward order book improved 8% to £1.15bn, with private forward sales up 31% to £653m and a strong pipeline of new land opportunities.

• Outlet numbers increased by 5% to 270, with over 100 outlets opened, outperforming an industry decline of 4.8%.

• Private sales were strong, with affordable housing mix at 15%, and first-time buyers accounted for about 30% of sales.

Operational improvements and strategic positioning

• Investments in land, planning, build quality, and customer service over the past three years have repositioned the business for future growth.

• Achieved planning on about 13,050 plots, up 21% year-on-year, supporting a stable land bank of around 82,100 plots.

• Vertical integration, including in-house brick, tile, and timber frame capabilities, supports cost control and margin protection.

• Remediation work has started or completed on over 70% of known developments, with total spend to date at £120m and only 7% left to tender.

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

Market conditions and outlook

• Entered 2025 with a stronger forward order book and robust land bank, positioning for further growth.

• Build cost inflation is projected at low single digits, with most increases limited to a few regions and materials; labor costs are well controlled.

• The planning environment is improving, aided by internal efforts and government NPPF reforms, though local variations persist.

• No significant impact expected from upcoming stamp duty changes due to the company’s price point.

• Company remains mindful of macroeconomic and geopolitical uncertainties, including interest rate changes.