REG - Persimmon Plc - AGM Trading Statement

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RNS Number : 8979G  Persimmon PLC  01 May 2025

 

1 May 2025

AGM Trading Statement

 

Persimmon Plc is today providing an update on trading for the period from 1
January 2025 to 27 April 2025, ahead of its Annual General Meeting ("AGM")
which is being held at 11.00am today in York.

 

Dean Finch, Group Chief Executive, commented:

 

"Persimmon has started the year well, building on our strong performance in
2024 with an improved private sales rate, an increase in average selling
prices and further growth in our network of outlets. As a result, our private
forward sales are up 17% on the prior year. We have continued our investment
in new land and achieved further planning success in the period.

 

We have seen no immediate impact on the business or on customer confidence
from the recent geopolitical uncertainty. Consequently, at this stage we
remain on track to deliver further growth in completions to between 11,000 and
11,500 for the full year, providing the UK housing market remains stable."

 

Highlights

                                                            2025      2024      Change
 Net private sales per outlet per week(1)                   0.74      0.73      +1%
 Current forward sales(2)                                   £2.34bn   £2.09bn   +12%
 Of which private forward sales(2)                          £1.68bn   £1.43bn   +17%
 Outlets(3)                                                 275       262       +5%
 Land holdings (plots owned and under control) at 31 March  c.83,800  c.82,500  +2%

 

(1)Net private sales per outlet per week excluding bulk sales of 0.65 (2024:
0.63)

(2)Current forward sales, including year to date legal completions, is stated
as at 27 April 2025 for 2025 and as at 28 April 2024 for 2024

(3)As at 27 April 2025 for 2025 and as at 28 April 2024 for 2024

 

Trading

The Group has traded well since the start of the year, in line with the
Board's expectations. The positive momentum seen in the first nine weeks of
the year has continued throughout the period and the net private sales rate
per outlet per week excluding bulk sales was up 3% to 0.65 (2024: 0.63).

 

Customer interest remains strong across the country. Our marketing campaigns
are generating healthy traffic to sites and online, and we are pleased to have
launched "New Build Boost" in March, which allows customers to purchase a new
home with a 15% interest-free equity loan. Although the scheme is in its early
stages, we have had good interest, and it is already assisting our customers
in addressing affordability challenges. Customer service continues to be an
important area of focus, with our 5-star homebuilder status retained.

 

Our private forward sales have increased by 17% to £1.68bn with a private
average selling price of c.£293,300, up 4% on the position at the same point
last year. Overall pricing on reservations continues to be robust, with total
incentives currently running around 4% on average.

 

We continue to have good planning success with 2,781 plots achieving detailed
or reserved matters approval in the first quarter (2024: 1,457), supporting
our outlet growth ambition. We are encouraged by the Government's planning
reforms, including the NPPF and the measures in the Planning and
Infrastructure Bill published earlier this year. These will provide further
momentum to the business in the coming years. We opened 27 new outlets in the
period and are currently operating from 275 outlets, up 5% on the prior year
(2024: 262). We continue to expect to open around 100 gross outlets during
2025 as we progress towards our target of operating from at least 300 outlets.

 

Gross land spend in the first three months of the year was £128m (2024:
£145m) of which £76m related to the settlement of land creditors (2024:
£96m). Our owned and under control land holdings stood at c.83,800 plots at
31 March 2025 (2024: c.82,500 plots).

 

Outlook

We are pleased with our 2025 performance so far and continue to expect
weighting of delivery to be similar to 2024. The investment made in the
business over recent years has positioned us well, allowing us to operate from
a growing outlet base and to deliver improved sales rates.

 

We have not yet seen any impact of the heightened macroeconomic uncertainty on
either our supply chain or our sales rates. Persimmon does not trade directly
with the US market and consequently has no direct exposure to the recently
announced tariffs. At this stage, the indirect impact is expected to be
limited. However, we are mindful of the current economic uncertainties and the
impact that these may have on mortgage rates and consumer spending.
Nevertheless, at this stage we believe we remain on track to deliver growth in
full year 2025 completions, to between 11,000 and 11,500 homes, with over half
of our private homes and almost all of our housing association homes already
secured.

 

Our market fundamentals remain strong and we are confident the business will
increase margins, returns and shareholder value over the medium term.

 

 

For further information please contact:

 Victoria Prior, Group IR Director            Giles Kernick, Teneo

 Anthony Vigor, Group Director of Strategic   Elizabeth Snow, Teneo

 Partnerships and External Affairs

 Persimmon Plc                                persimmon@teneo.com
 Tel: +44 (0) 1904 642199                     Tel: +44 (0) 7912 540 246

 

 

Appendix:

                2025             2024             Variance
 Forward sales  Value     Homes  Value     Homes  Value  Homes
 Private        £1.68bn   5,714  £1.43bn   5,086  +17%   +12%
 Partnership    £0.66bn   4,067  £0.66bn   4,055  +0%    +0%
 Total          £2.34bn   9,781  £2.09bn   9,141  +12%   +7%

( )

Current forward sales, including year to date legal completions, is stated as
at 27 April 2025 for 2025 figure and as at 28 April 2024 for 2024 figure.

 

Cautionary statements

Some of the information in this document may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Persimmon Plc and its subsidiaries (the Group). You can
identify forward-looking statements by the terms such as "expect", "believe",
"anticipate", "estimate", "intend", "will", "could", "may" or "might", the
negative of such terms or similar expressions. Persimmon Plc (the Company)
wishes to caution you that these statements are only predictions and that
actual events or results may differ materially and as such undue reliance
should not be placed on these statements. The Company does not intend to
update these statements to reflect events and circumstances occurring after
the date hereof or to reflect the occurrence of unanticipated events. Many
factors could cause the actual results to differ materially from those
contained in projections or forward-looking statements of the Group, including
among others, general economic conditions, the competitive environment as well
as many other risks specifically related to the Group and its operations. Past
performance of the Group cannot be relied on as a guide to future performance.

 

Please see the most recent Annual Report and Accounts of Persimmon plc and
other disclosures through the Regulatory News Service ("RNS") for further
details of risks, uncertainties and other factors relevant to the business and
its securities.

 

The information in this trading statement is unaudited.

 

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