Housebuilding giant Persimmon is pinning its hopes on a recovery in the housing market later this year as it aims to bounce back for a difficult time for construction firms.
The York-based company saw its profits more than halve last year as the number of houses it completed fell from almost 15,000 to 9,922.
In first quarter results released this morning to the Stock Exchange, Persimmon said it was on track to deliver growth and get its housing completions to between 10,000 and 10,500 in 2024. That confidence came despite another fall in Q1 completions, from 1,136 a year earlier to 1,027.
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As part of its trading update, Persimmon said that “first-half performance will be subject to embedded build cost inflation and lower average selling prices” but that was expected to turn around in the second half of the year. The company said its forward sales position had improved to £1.75bn and its average selling price of £283,000 had risen 6% since the start of the year.
Group chief executive Dean Finch said: “Persimmon has had a good start to the year and is on track to deliver growth in completions to between 10,000-10,500 for the full year. Our first quarter performance was in line with expectations, and we saw an improvement in sales rates alongside firm pricing.
“Trading over recent weeks has been encouraging with robust visitor numbers and enquiries, giving us confidence for the remainder of the year. Overall, our private forward order book is up 18% on the prior year with the embedded private average selling price ahead of the position at the start of the year.
“We are making good progress in expanding our outlet network and we will continue to position the business for success, maintaining our focus on quality and customer service, and converting our land holdings into active developments.”
Persimmon is not alone among the UK’s major housebuilders in experiencing tougher trading conditions in the last 18 months. The sector has seen big falls in sales due to higher interest rates and the economic downturn, albeit that position comes after several years of significant increases.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
