Persimmon has reported higher profits, sales and completions in the first half of the year, saying it remains on track to meet its full-year targets despite affordability pressures and a volatile economic backdrop.
Announcing its half year results for the six months ended 30 June 2025 yesterday, the FTSE 100 housebuilder completed 4,605 new homes in the six months to 30 June, up 4% on the same period last year, with private completions rising 7% to 3,987.
Average selling prices climbed 8% to £284,047, helped by a greater proportion of higher-end Charles Church properties and firm pricing.
Revenues from new housing rose 12% to £1.31bn, while underlying operating profit increased 13% to £172m, producing a margin of 13.1%. Underlying profit before tax was up 11% to £164.9m. Statutory pre-tax profit was broadly unchanged at £146.7m.
EXCELLENT MARGINS
The York-based group’s private forward order book is 11% higher than a year ago at £1.25bn, with an average sales price of about £292,800. Total forward orders, including its Partnerships division, stand at £1.86bn.
Persimmon said it had grown its number of active sales outlets to 277, a 4% increase, and was targeting at least 300 by the end of the year.
The company also secured detailed planning for 5,066 plots in the period – equivalent to 110% of completions – and spent £210m on land at what it described as “excellent margins.”
The group said it was now about 80% secured on private completions for the year and fully secured on Partnerships completions, supporting guidance of 11,000–11,500 total completions and a housing operating margin of 14.2–14.5% for 2025.
Looking ahead, Persimmon said it expects to grow volumes to about 12,000 units in 2026, with similar margin progression to 2025.
AFFORDABILITY CONSTRAINTS
It cautioned, however, that affordability constraints, higher industry-wide costs and the fading impact of embedded build cost inflation could temper the pace of margin improvement thereafter.
Dean Finch, Chief Executive, said the company’s performance showed its strategy was working “despite challenging market conditions.”
He added: “Our average sales price, sales, completions, planning approvals, active sites and forward order book are all up, many against industry trends… We are on course to deliver our previously guided range of 11,000–11,500 completions this year.”
Persimmon maintained its interim dividend at 20p per share.
STEADY RECOVERY
Axel Rudolph, Senior Technical Analyst at IG, says: “Persimmon’s half-year numbers underline a steady recovery in the UK housebuilding sector, with rising revenues, higher selling prices and robust forward sales giving the group confidence in its full-year targets.
“While the flat statutory profit figure and cash outflow highlight the ongoing challenges of affordability and market uncertainty, the stable dividend and solid completions guidance suggest Persimmon is well placed to deliver on its growth ambitions into 2026.”
