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Persimmon PLC on Tuesday said trading and house completions were in line with expectations, but house completions are still set to be lower than in previous years. The York-based housebuilder said trading in the period from July 1 to Monday was in line with expectations with broadly stable pricing. House completions in the third quarter fell 37% to 1,439 from 2,270 a year prior. Private home completions were down 35% to 1,234 from 1,894. The current forward sales position contracted 23% to £1.62 billion from £2.09 billion. The private selling price on completions was up 2% year-on-year in the third quarter at £296,822. Persimmon expects around 9,500 completions for 2023, down 16% from 11,282 in 2022 and 13% lower than 10,965 in 2021. Chief Executive Officer Dean Finch said: ‘We are on track to deliver around 9,500 quality new homes in 2023 with operating profit in line with expectations and at an operating margin similar to the first half. While the near term is likely to remain challenging and we remain disciplined on costs, we continue to position the business for growth when the market recovers, as demonstrated by our further progress on planning in the period. The group’s national network of outlets providing a high-quality product at a range of attractive prices is a crucial strength in this market.’ The company said: ‘Into 2024, we anticipate market conditions will remain highly uncertain, but we are well positioned with our focus on delivering high quality sustainable homes for our customers at a price they can afford with our Persimmon Homes average selling price about 25% below the national average.’ Persimmon shares rose 4.0% to 1,125.15 pence each on Tuesday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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