Persimmon on course for 9,000 homes

Persimmon says it is on course to deliver at least 9,000 homes in 2023 as the firm reported its half year results for the six months to the end of June. This is at the top end of the range indicated by the firm earlier this year, but significantly below last year’s 14,868.

The firm completed 4,249 homes in the half year (2022: 6,652) generating revenue of £1.19 billion (2022: £1.69 billion) and profit before tax of £151 million (£439.7 million).

The sales rate for the six months was 0.59 per outlet per week (2022: 0.91). Persimmon said this sustained “the higher than expected rates seen in the first quarter and secured with the controlled use of incentives and investor deals”. The average incentive level in the period was 3.2% on private sales, while investor deals accounted for 0.03 of the sales rate. Persimmon “continues to assess approaches from interested parties on a case-by-case basis”. Sales outlets remained flat in the period, 273 in June 2023 against 272 in December 2022.

The group’s average sales price was £256,445, up 4% on last year’s £245,597 partially reflecting the firm delivering larger homes. However housing gross margin has slipped to …