Persimmon forecasts 'favourable' long-term outlook despite lower 2023 profits

Shares in Persimmon (LSE: PSN) rose 2.6% on Wednesday morning as the UK housebuilder said that its long-term outlook remains “favourable”, despite reporting lowered profits in 2023 amid “challenging market conditions”.

The builder completed 9,922 homes last year, down a third from 2022. While average selling prices crept up to £255,750, Persimmon’s year-end cash levels were £862 million at the end of 2023.

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However, Persimmon enters 2024 with an 11% rise in private forward sales to £499 million, buoyed by higher demand. The company believes moderating mortgage rates and slowing build cost rises will boost completion volumes and house sales ahead.

While near-term uncertainty looms before the 2024 general election, Persimmon says its positioning as a below-market-price builder places it in “sustainable growth” territory once conditions improve.