Firm said underlying profit at upper end of expectations
Persimmon expects to report a 12% increase in completions and profit at the higher end of expectations when it files its 2025 accounts in March.
In a year-end trading update this morning, the housebuilding giant said completions during the period had increased from 10,644 to 11,905.
Underlying profit before tax is expected to be “at the upper end” of market expectation. The company-compiled consensus figure for this stood at £428m as of 9 January.
However, the underlying housing operating margin is likely to be towards the lower end of the guided range of 14.2% to 14.5%.
Private home completions were up 8%, from 9,075 to 9,830, while partnership homes delivery rose 1,589 to 2,075.
The average selling price also rose 4% to £278,000 but the update noted “some softening” in the build-to-rent market in the fourth quarter, ahead of last November’s Budget.
The value of forward sales stood at £1.17bn, up slightly from £1.15bn.
The group said it was “not expecting any material improvement in market conditions this year” and said “continued challenges in the registered provider market” were “likely to slow our growth” in the market for affordable homes.
Build cost inflation was forecast to be “similar” to 2025 and the business said that “assuming trading conditions remain stable”, it was on track to achieve current market expectations for 2026.
This would see it deliver 12,043 homes and achieve underlying pre-tax profit of between £461m and £487m.
Persimmon will unveil its final results on 10 March.
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