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Persimmon Shares Rise 6% as Sales Rate Improves

Persimmon's third-quarter update showed homes selling slightly faster and at slightly higher prices in a challenging housing market. The shares rose today, while the company warned that 2027 cost pressures will limit profit growth.

Persimmon (LON: PSN), the housebuilder behind the Persimmon, Charles Church and Westbury Partnerships brands, said trading since 1 July is in line with market expectations. Its shares rose sharply in London after the update.

The shares stood at 1,327.75p at 11.42am today, up 6.0% from yesterday’s close of 1,252.5p, after trading between 1,283p and 1,331.5p. That is about 7.7% above a year ago, but below the 1,543.5p closing high in February.

PSN.LSE

The statement, published at 7am and covering 1 July to 1 November, was headlined “Market share gains and planning success support full-year growth”. Dean Finch, Group Chief Executive, said:

Our clear strategy has allowed the Group to increase both sales and planning approvals at a time when the overall sector is declining.

Dean Finch, Group Chief Executive, Persimmon

The evidence is a better sales rate, meaning homes sold per site per week, and a firmer order book, the homes already sold but not yet completed. Planning approvals, final permission to start building, rose 12% to 8,722 plots in the nine months to 30 September.

Measure This year Last year
Net private sales rate 0.79 0.76
Rate excluding bulk deals 0.65 0.63
Total forward sales £2.82bn £2.79bn
Private average price in order book c.£301,900 c.£295,150
Average sales outlets 263 272

Sales improved even though Persimmon averaged 3% fewer active building sites, so each site sold more.

Persimmon's share price line climbs to a February peak, slides through summer to a July trough, then recovers into autumn before jumping sharply today as the stock reacts to its Q3 trading statement.
Persimmon’s share price over the past 12 months, with today’s jump after the Q3 trading statement.

Three brokers rate the shares a Buy, according to Proactive Investors. Panmure Liberum has a 1,694p target and credits product, pricing and execution. Jefferies, at 1,590p, points to land pipeline growth and more than 100 outlet openings planned for 2027. Peel Hunt’s target is 1,420p.

The caveat is 2027. Persimmon expects inflation to add c.£30m-£40m of costs, which with higher financing costs it says will limit near-term profit progression. Peel Hunt expects a cut of less than 2% to consensus 2027 pre-tax profit. The next update, for the full year, is due on 12 January 2027.

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