Persimmon Plc (LON:PSN) has announced Final Results for the year ended 31 December 2024.
Financial Highlights
| 2024 | 2023 | Change | |
| New home completions | 10,664 | 9,922 | +7% |
| New home average selling price | £268,499 | £255,752 | +5% |
| New housing revenue | £2.86bn | £2.54bn | +13% |
| Underlying operating profit1 | £405.2m | £354.5m | +14% |
| Underlying operating margin2 | 14.1% | 14.0% | +10bps |
| Underlying profit before tax1 | £395.1m | £359.4m | +10% |
| Underlying return on average capital employed3 | 11.1% | 10.5% | +60bps |
| Dividend per share | 60p | 60p | -% |
| Cash at 31 December | £258.6m | £420.1m | £(161.5)m |
| Statutory measures: | |||
| Total Group revenue | £3.20bn | £2.77bn | +16% |
| Profit before tax | £359.1m | £351.8m | +2% |
| Operational highlights: | |||
| Land holdings at 31 December – plots owned and under control | 82,084 | 82,235 | -% |
| Number of selling outlets at 31 December | 270 | 258 | +5% |
| Current private forward sales position4 | £1.15bn | £0.90bn | +27% |
| Customer satisfaction score5 | 96.0% | 92.9% | +310bps |
· 7% increase in completions to 10,664
· 14% increase in underlying operating profit and underlying operating margin of 14.1% (2023: 14.0%)
· Improved net private sales rate of 0.70 per outlet per week up from 0.58 in 2023. Excluding bulk sales, net private sales rate of 0.59, up 5% on the prior year (2023: 0.56)
· Customer satisfaction score improved to 96.0% (2023: 92.9%); continued five-star HBF rating
· 13,064 plots achieved detailed planning consent in the year, a 21% improvement and significantly above industry trends
· £1.55bn disciplined land investment in last three years supporting future outlet growth
· 12% increase in underlying EPS to 92.1p1
Current trading and outlook
We entered 2025 with an improved forward order book and have continued to add to it since the start of the year. In the first nine weeks of 2025, our net private sales rate per outlet per week was 0.67, up 14% compared to the same period last year (2024: 0.59). Combined with a 3% increase in the private average selling price to £288,542 (2024: £279,282), our current private forward order book is £1.15bn, 27% higher year on year (2024: £0.90bn).
Given this progress in our forward order book and an anticipated increase in the delivery of affordable homes, we are targeting 11,000-11,500 completions in 2025. Alongside this we are targeting further growth in profit and returns, in line with market expectations, and an improved underlying operating margin in 2025. Although we are mindful of the potential impact from ongoing macroeconomic and geopolitical uncertainties, the underlying market fundamentals remain strong. Persimmon is well positioned to benefit from our disciplined investment in land and operational improvements of recent years. Our medium-term ambition is to deliver an underlying operating margin and ROCE of 20%.
Dean Finch, Group Chief Executive, commented:
“Persimmon’s disciplined investment and significant operational improvements in recent years has created a stronger business. This is demonstrated by our growth in 2024, with completions, outlets and profit all up. The underlying market fundamentals remain strong and we are encouraged by the further improvement in our sales rates in the early weeks of this year. The Government’s welcome planning reforms and pro-housebuilding agenda demands more of the high-quality, affordable homes which are Persimmon’s core strength, providing a positive tailwind.
With our strong platform in place, we are targeting further growth this year and are confident the business will grow margins, returns and shareholder value over the medium term.”
Footnotes
1 Stated before net exceptional charge (2024: £34.4m; 2023: £nil), and goodwill impairment (2024: £1.6m; 2023: £7.6m).
2 Stated before net exceptional charge (2024: £34.4m; 2023: £nil), and goodwill impairment (2024: £1.6m; 2023: £7.6m) and based on new housing revenue.
3 12 month rolling average calculated on operating profit before net exceptional charge (2024: £34.4m; 2023: £nil), and goodwill impairment (2024: £1.6m; 2023: £7.6m).
4 2024 figure as at 2 March 2025; 2023 figure as at 3 March 2024.
5 The Group participates in a National New Homes Survey, run by the Home Builders Federation. The rating system is based on the number of customers who would recommend their builder to a friend.
