11 March 2025
If you are covering Persimmon’s full year results please find comments below from Oli Creasey, property analyst at Quilter Cheviot:
“Persimmon's full-year results reflect improving conditions in the housing market. House prices and sale volumes saw notable increases in 2024 compared to 2023, with prices up by 5% and volumes by 7%. Although these figures are still below the levels seen before the interest rate rises of 2022, the recovery is clearly underway.
“Looking ahead, Persimmon's guidance for 2025 is optimistic, targeting 11,000 to 11,500 sales, which represents a 5% increase compared to 2024. The performance year-to-date has been particularly strong, with sales rates up by 14% and prices increasing by 3% compared to the same period last year.
“Persimmon's operating margin remained stable at 14% in 2024, similar to 2023. Management is aiming for a medium-term margin of 20%. While this target may not be achieved in 2025, it remains a reasonable goal for the medium term.”
