Persimmon 2023 Sales Report

Sales and Profit Projections

SALES FORECAST: The U.K. house builder, Persimmon, is set to reveal its 2023 full-year sales of approximately £2.65 billion, a notable 31% decrease from the previous year’s impressive £3.82 billion.

PRETAX PROFIT FORECAST: Expectations suggest that the FTSE 100-listed company will report a pretax profit of around £353 million, a drop from the prior-year’s £730.7 million.

Company Performance

Shares in Persimmon, located in York, U.K., have seen a significant 9% increase in the last twelve months and a substantial 30% surge over the past six months. The company has benefited from positive outlooks on interest rate reductions and improved industry sentiment due to lower mortgage rates and reduced build-cost inflation.

Key Areas of Interest

• Guidance for 2024: Analysts and investors are eagerly awaiting Persimmon’s guidance for the upcoming year based on the detailed January update.
• First Quarter Business Trends: The performance in the first quarter will be closely monitored to gauge the company’s standing.
• Positive Outlook: With a strong position for growth, Persimmon is expected to showcase an improving outlook for the future according to Jefferies’ note in January.

Market Analysis and Investor Insights

Investors are keeping a keen eye on the latest trends in demand and pricing within the U.K. housing market. Rightmove’s asking-price index revealed a 0.9% increase in asking prices for February, signaling a positive shift after six months of decline. According to RBC Capital Markets, housebuilders have observed rising enquiry levels and firm prices, with some even increasing prices without dampening demand.

Forward Sales and Financial Outlook

Persimmon’s forward sales book is under scrutiny, particularly in comparison to analysts’ forecasts and previous year’s revenue. Analysts note a significant decrease in the past eighteen months due to reduced affordability following a decade-long surge in house prices. Previously at GBP1.6 billion, Persimmon’s balance sheet, boasting at least GBP400 million, positions the company to pursue aggressive land acquisitions and potentially distribute cash to shareholders. Despite a dividend cut in 2022, Persimmon is expected to maintain stability going forward. Analyst consensus points towards a projected dividend of 60 pence for 2023, as reported by FactSet.