Results for the year to 31st December 2023 show Persimmon group revenue was down a third at £2.54bn (2022: £3.7bn) and pre-tax profit fell to £351.8m (2022: £730.7m).
Completions were down 33% at 9,922 completions in 2023 compared to 14,868 in 2022. Average selling price was up 3% at £255,752 (2022: £248,616)
With interest rates expected to remain at current levels and a general election on the horizon, market conditions are expected to remain subdued throughout 2024, said chief executive Dean Finch. However, he has his eye on the medium-term and says the company is on track to open a gross new 30 outlets for the spring selling season, growing the outlet base back to over 300 over the medium-term. (The average number of outlets in 2023 was 266.)
Dean Finch said: “Although the near-term outlook remains uncertain, the significant pent-up demand for homes remains unchanged. Customers want quality homes in the places where they want to live and work, and affordability is crucial. During the year we have continued to take further steps to strengthen the business and we are well placed to meet this demand through our three excellent brands offering different price ranges with overall private average selling prices that are below the market average. The investments and operational changes that we have made in the past few years mean that we are trusted by our customers to deliver consistently high-quality homes.
“We can achieve this while positioning the business to maintain industry-leading financial returns as markets recover, supported by our vertically integrated business model, strategic land buying and disciplined approach to cost control. Through further investments in innovation, I believe we can build even higher quality homes better, faster and more efficiently over time.
“We are well placed to manage the ongoing uncertainty and we have good visibility over our land pipeline which, over the medium-term, will support a return to growth in outlets and volumes, alongside improved margins and robust cash generation, paving the way for sustainable shareholder returns."
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