There was no help in the budget for HBs.
No extension of Stamp Duty, ends soon.
No new scheme to replace the Help to Buy scheme, which was introduced by the Tories a decade ago to help housing market. HBs made hundreds of millions pounds from this scheme.
Inflationary pressures.
Inflation expected to rise this summer, so interest rates will have stayed higher for longer.
Labour in charge for 4+years.
Trump in charge for 4years |
Angus McOatup, What,s Jet2 got to do with PSN ! |
Jet 2 announces major expansion for winter 25/26 |
Budget this week.
Given the lack of funds, I can't see the Chancellor announcing huge schemes, similar to Help to Buy, where buyers received interest free loans. The H2B scheme was introduced by the Tories over a decade ago to help FTBs.
HBs made hundreds of millions of pounds from the scheme. |
Tourist
"That´s over 20% increase in YoY sales rates."
That was expected and covered by me 2 months ago. Stamp Duty Changes coming in effect in few weeks. What matters is what happens in the months which follow.
The company/sector newsflow continues as expected.
sikhthetech - 16 Jan 2025 - 11:47:10 - 5926 of 5986
Housing market activity was expected to pick up because of the Stamp Duty changes announced by the Chancellor.
I think market activity will continue to pick up ahead of the Stamp Duty changes, effective from April, as more buyers try to beat the deadline.
The months following the Stamp Duty changes are what matter. I expect market activity to fall back. |
Sikh ... selective again!
"We have seen an encouraging start to the year. In the 10 week period to 14 March, the open market sales rate (excluding bulk) was 0.61 (FY24 0.50)"
That´s over 20% increase in YoY sales rates. Which might be why their shares are currently up 7% today :) |
HB Crst TU.
Interest rates staying higher for longer, inflationary pressures and economic uncertainty all impacting HBs.
Read company/Sector, economic/political newsflow.
From Crst TU:
"Market condition remains stable, with mortgage rates improving marginally. However, with interest rate reductions now expected to be slower, stubborn inflation and broader global macro-economic uncertainty, the housing sector remains susceptible to weak consumer confidence." |
Interest Rates held, as expected.....
due to inflationary pressures from Trump and Labour's policies. Also economy not doing as well as the govn expected.
"Economic uncertainty and the threat of tariffs to global trade seem to be the main reasons why policymakers have held off on back-to-back cuts.
But it cites some interesting feedback from its "agents" around the country – that businesses are bracing themselves for a tax hike when employers' National Insurance increases next month.
It says most have paused or frozen hiring already, and are in "wait and see" mode to see how things pan out."
sikhthetech - 06 Feb 2025 - 12:24:44 - 5938 of 5983
Newsflow continues as predicted:
Weak economy. Watch the inflationary pressures down the line.
Trump's policies are inflationary.
Labour's policies are inflationary |
U.K. 10 year bond yields are parabolic, market well aware U.K. is utterly fukt. These back at almost covid lows and the full blown recession hasn’t even started yet. Almost back to 2023 lows, these will be cut in half from here and U.K. bank shares are going to vaporised. |
Citigroup selling then ? |
Citigroup raises Persimmon price target to 1,496 (1,468) pence - 'buy'
Not helping today, profit takers galore... |
 Closing II report:
Housebuilder Persimmon fared better, rising 4.5%, as it reported consensus topping profit and set out an optimistic completions forecast, offering hope that the housebuilder is "well placed" despite a still tricky market backdrop.
The York, England-based housebuilder said pretax profit rose 2.1% to GBP359.1 million in 2024 from GBP351.8 million a year prior. Underlying pretax profit rose 10% to GBP395.1 million from GBP359.4 million, ahead of previous guidance for around the upper end of market expectations of GBP349 million to GBP390 million.
Revenue improved 15% to GBP3.20 billion in 2024 from GBP2.77 billion a year prior.
New home completions rose 7.5% to 10,664 from 9,922 and underlying operating margin improved to 14.1% from 14.0%.
Stifel noted Persimmon's underlying pretax profit beat consensus by 3%.
"These are the sector's first full-year results to show rising profits in this cycle," Stifel analysts said.
Persimmon is aiming for 11,000 to 11,500 completions for 2025. Stifel noted consensus sits somewhere in the middle of that range at 11,256. |
wealthoracle.co.uk/detailed-result-full/PSN/1286 |
I want to know how much money is received from the estate management companies who are awarded the contracts to fleece freehold home owners with uncapped fees until the end of time ? Where is that shown ? Can’t be giving those contracts away for free can they ? |
@carpingtris, the below shows where the cash went, some into land and some into cladding (I think), with the rest divs:
“investing £232.7m in working capital (being principally £113.4m in net land and a £57.3m utilisation of the legacy buildings provision) and returning £191.8m of capital to shareholders…”
Cash expected to decrease in 2025, as they do more of the same. |
Hopefully that net cash reduction is because it has been 'put to work' - no point keep sitting on it! |
Massive dent in net cash, and incentives up
Incentives up…..
‘controlled at c.4.5% per gross reservation (2023: c.4.0%).’
Net cash down from 407m to 244m |
An unexpectedly great update, especially the impressive bullish outlook, well done PSN! |
40p for the forthcoming final dividend, which is an increase on the last one. It’s a start, but a special would have been nice after the performance of the last few years. Let’s hope the market likes the results |
INCREDIBLE PERFORMANCE & OUTLOOK, and along with a great dividend yield confirmed!
Yet another extremely impressive RNS update by PSN today with clearly a very solid, efficient, and proactive company management now in place for future growth:
“7% increase in completions to 10,664
· 14% increase in underlying operating profit and underlying operating margin of 14.1% (2023: 14.0%)
· Improved net private sales rate of 0.70 per outlet per week up from 0.58 in 2023. Excluding bulk sales, net private sales rate of 0.59, up 5% on the prior year (2023: 0.56)
· Customer satisfaction score improved to 96.0% (2023: 92.9%); continued five-star HBF rating
· 13,064 plots achieved detailed planning consent in the year, a 21% improvement and significantly above industry trends
· £1.55bn disciplined land investment in last three years supporting future outlet growth
· 12% increase in underlying EPS to 92.1p1” |
Excellent full trading update lovely |
A lot of shorts closed their positions. |
I must take your advice then rather than digest an official trading update from the company. Oh by the way, do you build them over the whole UK? I would imagine not, so your opinion is based on one little site where you work. |
Get a life sad clown |
PSN reporting fy24 results tomorrow.
Again comments to look out for on
outlook,
affordability,
cash,
Dividend,
Incentives
Govn schemes
etc |
Register to chat with like-minded investors on our interactive forums.
Hot Features
Premium
