Persimmon on track after 'encouraging' trading in Q1

UK housebuilder Persimmon saw a 10% drop in new home completions in the first quarter, but said it experienced an improvement in sales rates and "firm pricing".

"Trading over recent weeks has been encouraging with robust visitor numbers and enquiries, giving us confidence for the remainder of the year," said chief executive Dean Finch, as the company held on to guidance to deliver 10,000 to 10,500 housing completions in 2024.

Completions in the first three months of the year totalled 1,027, down from 1,136 a year earlier, comprising 852 private homes (902 previously) and 175 homes through a partnership model (234 previously).

However, net private sales per sales outlet improved to 0.66, up from 0.62 the year before.

Persimmon opened 28 gross outlets in the quarter, taking the total number up 2% since the start of the year to 263. A further 30 gross outlets are planned before the half-year stage.

Meanwhile, the company currently has a forward sales position of £1.75bn up from £1.69bn at this point last year.

"Trading over recent weeks has been encouraging with robust visitor numbers and enquiries, giving us confidence for the remainder of the year. Overall, our private forward order book is up 18% on the prior year with the embedded private average selling price ahead of the position at the start of the year," Finch said.