Persimmon – building towards a strong 2025
Aarin Chiekrie, equity analyst, Hargreaves Lansdown: “Persimmon’s building on its strong performance in 2024 and looks like one of the best-placed names to benefit from any potential uplift in the sector. Improving sales rates, higher average selling prices and a growing order book all paint a very encouraging picture of current and future trading. This positive sales momentum should feed down to the bottom line and help profits return to growth after two years of declines. The in-house materials businesses, which we see as a key differentiator, should help on this front too. They give Persimmon quick and cheaper access to key materials. When Persimmon’s able to use its own bricks, tiles and timber, it saves around £5,500 per plot.
Persimmon’s houses are typically priced more than 20% below the newbuild national average, so sales tend to be more resilient in times of uncertainty. With operations focused in the UK, Persimmon’s not seeing the after-effects of US tariffs yet, either across its supply chains or in its sales rates. With shareholder payouts a key focus and Persimmon’s valuation sitting some way below the long-term average, this could mark an opportunity for long-