Persimmon shares rose as the housebuilder reassured investors that its targets will be met this year – despite higher mortgage rates, the end of Help to Buy, inflation and ongoing market turmoil.
The FTSE 100 firm added 2.2 per cent, or 25p, to 1148.5p after it said its profit for 2023 should be in line with expectations.
Persimmon also said it was likely to build at least 9,000 homes in 2023 – the top of its previous range – and more than the 8,300 expected by analysts at Peel Hunt.
And the average price a Persimmon home sold for rose to £256,445 in the six months to the end of June – up from £245,597 a year earlier.
Chief executive Dean Finch said: ‘With the historic under-supply of homes the longer term outlook for housing remains positive.’
On track: Persimmon said it was likely to build at least 9,000 homes in 2023 – the top of its previous range – and more than the 8,300 expected by analysts at Peel Hunt
But profits of £151million for the six months to the end of June were 65 per cent lower than the same period last year and while revenues of £1.19billion beat expectations, they were 30 per cent below the figure recorded in 2022.
The company said this was down to the ongoing challenges following last autumn’s mini-Budget.
There was little to cheer for those hoping to get on to the housing ladder as the proportion of the housebuilder’s sales to first-time buyers fell to 34 per cent during the period.
That was down from 42 per cent in the first half of last year, with the group attributing the decline to the end of government policies such as Help to Buy.
Persimmon also axed almost 300 jobs during the period in a bid to save £25million.
It followed fellow housebuilder Bellway, which on Wednesday said it was ‘taking steps to reduce headcount’ across the business.
Stock Watch – Marks Electrical
Bumper sales of TVs, washer-dryers and cordless vacuum cleaners helped Marks Electrical make a strong start to its new financial year.
The online white goods retailer’s revenues of £36.2million in the four months to the end of July were 30.7 per cent ahead of the same period a year ago.
It came as TV sales soared 84 per cent year-on-year, closely followed by washer-dryers and a 62 per cent increase in cordless vacuum cleaners.
Shares rose 4.8 per cent, or 4.5p, to 99p.
Chris Beauchamp, chief market analyst at trading platform IG Group, said most of the bad news appeared to have been priced in already despite the ‘dire’ set of figures.
He said: ‘Now the UK outlook is less gloomy, some hope prevails that the year ahead might be a better one, helping to keep the pessimism in check.’
The FTSE 100 rose 0.41 per cent, or 31.30 points, to 7,618.60 and the FTSE 250 was up 0.3 per cent, or 56.61 points, to 18,993.81.
Capita, the government contractor which collects the BBC licence fee and runs the London congestion charge, has agreed to sell its travel and events businesses Agiito and Evolvi to Clarity Travel for £36.5million. Shares in Capita rose 3.9 per cent, or 0.77p, to 20.3p.
Pod Point gained 3.3 per cent, or 1.03p, to 32.03p after it signed a two-year deal to install electric vehicle chargers at homes built by Redrow.
The pair have been working together since 2018 and Pod Point has supplied 2,000 chargepoints to the mid-cap firm.
Pod Point also works with the UK’s biggest housebuilder Barratt Developments.
Mining giant Antofagasta lowered its copper production forecasts amid issues at its Los Pelambres mine in Chile.
It now expects to produce 640,000 – 670,000 tons this year, down from a previous range of 670,000 and 710,000. Shares fell 1.5 per cent, or 24.5p, to 1,582.5p.
Lender OSB Group maintained its forecast for its loan book, which grew by 4 per cent to £24.5billion in the first six months of 2023, to increase by around 7 per cent this year.
Shares added 4 per cent, or 15.2p, to reach 391.2p.
MusicMagpie’s SmartDrop Kiosks, which enable people to earn cash by recycling their mobile phones, will arrive at three shopping centres in Manchester and Bristol this week.
Shares gained 6.2 per cent, or 1p, to 17.25p.
This post first appeared on Dailymail.co.uk
