Persimmon PLC (LSE: PSN)

Persimmon PLC is an FTSE 100 index listed provider of home building services that offers construction and maintenance services for residential buildings.

On 26 April 2023, PSN expects to release the next trading update.

Financial Highlights (for the year ended 31 December 2022, released on 1 March 2023)

(Source: Company Filings)

• The underlying operating profit jumped 4% YoY to more than £1 billion, while the HBR customer satisfaction score remained above the 90% five-star threshold for the year.
• However, pretax profit plunged 24% YoY in FY22, due to the increase in provision for building safety remediation, related to flammable cladding.
• Due to house price inflation, average selling price jumped 5% YoY in FY22. The Group reported cash generation of £1,002.7 million in FY22 (FY21: £1,209.8 million).
• There is a significant drop in the forward sales position in Q4 FY22 to 0.30 (Q4 FY21: 0.77); the current forward sales stand at £1.52 billion.
• For FY22, the Board has proposed a final dividend of 60 pence per share, which is also an only dividend for FY22. It is reflecting the impact of the slowing housing market and higher mortgage rates.
• Notwithstanding, the Group looked confident about the longer-term fundamentals as the historic lack of housing supply shall continue to support demand. The current key challenges are mortgage product availability and affordability. The Company has industry leading margins and land holdings to take deliver growth once the market condition improves.

Share Price Chart

(Data Source: REFINITIV, Analysis done by Kalkine Group)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Persimmon PLC was trading at the closing price of GBX 1,277.50 (as of 1 March 2023).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 1 March 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 4: Dividend Yield may vary as per the stock price movement.

Disclaimer

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.

Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.