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 |
UK house prices fall unexpectedly, says Halifax
Average property price dips to £298,602 in February despite analysts expecting rush before stamp duty rises |
Good week next week.. |
Persimmon (PSN.L) — Releases final full year results on Tuesday 11 March
Housebuilder Persimmon (PSN.L) has already given investors a glimpse into what to expect from its full-year results, having released a trading update in January.
Persimmon (PSN.L) said completions were up 7% year-on-year, at 10,664 homes, which was ahead of market expectations.
The housebuilder said it expected full-year underlying profit before tax for 2024 to around the upper end of market expectations, with guidance of £349m ($451m) to £390m.
In the outlook it did provide for 2025, Persimmon (PSN.L) said it had started the year with an improved forward order book and strong land bank.
At the same time, the housebuilder said it was "mindful of evolving macroeconomic and geopolitical uncertainties, including the timing of future interest rate changes, and the effect that they may have on our market and consumer confidence in the short-term."
Investors will be keeping an eye out for any more specific comments on its outlook for the year, when it releases the final full year results on Tuesday.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown (HL.L), said that markets are "expecting further growth in pre-tax profits to around £430m."
"Build cost inflation is on the rise again, but thanks to Persimmon’s (PSN.L) in-house materials businesses, this impact should be limited to low single digits," he said. "And with Persimmon’s (PSN.L) houses typically being priced more than 20% below the national average, markets expect to see demand hold up relatively well even if the current affordability pressures persist." |
Huge building crash coming, know how I know I build them and they are not selling! |
Having read the article sikhthetec, you are quoting rather selectively.
"Some will face higher stamp duty bills owing to the changing thresholds, which include the first-time buyer relief being available only to those buying a property for less than £500,000, rather than less than £625,000."
Undoubtedly the couple racing to save £11,000 are buying an above average value property.
The average private selling price for Persimmon homes in 2024 was £287,150 so no Stamp Duty applicable for first time buyers, and less than £5,000 for the rest of us ... for now, and probably for most of 2025. They will do a lot to keep the avge. below £300.000 IMHO. |
There you go, as expected... buyers, especially FTB, rushing out to beat Stamp Duty changes to save thousands...
Hence reason for increased buying...
What will happen in the months following the Stamp Duty changes.
Home buyers race to beat stamp duty rise
"Home buyers are scrambling to complete purchases by the end of the month or face paying thousands of pounds extra in stamp duty.
First-time buyers in particular could be hit when stamp duty thresholds in England and Northern Ireland change on 1 April.
One couple said they felt like they were "in a race, and our prize is £11,000". |
Any idea why housing stocks having a nice rise today?
Sikh, have you anything to add?
Cheers. |
From TW's results
Their avg New Build price falling. Cash continues to decline
Significant tax rises coming in a few weeks. Stamp Duty changes as well.
If New build prices fall and tax rises impacting costs then margins will get squeezed.
From results:
- UK average selling price on private completions of £356k (2023: £370k) with the overall average selling price £319k (2023: £324k)
· Year end net cash‡ position of £565 million (31 December 2023: £678 million net cash), ahead of our guidance as a result of the timing of land purchases |
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