MARKET REPORT: Housebuilders on the move as profits improve
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There was finally a smattering of better news from the beleaguered housebuilding sector. Persimmon rallied from its lowest level since late 2023 by 5.5 per cent, or 58p, to 1114p after reassuring investors that annual profits were likely to be towards the upper end of the range analysts expect.
The builder completed more than 10,660 homes last year, from studio apartments to five-bedroom houses. That was up 7 per cent from 2023 and more than expected. Forward sales were 8 per cent higher at £1.15billion. Another builder, MJ Gleeson, bounced 4 per cent, or 17.5p, to 460p after confirming 2024 results were likely to be better than the previous year and would meet expectations – in spite of a subdued housing market.
Less encouragingly, Crest Nicholson delayed annual results to give its auditor, PwC, more time to count the cost of improving fire safety in its tall buildings. Profits up: Persimmon rallied by 5.5%, or 58p, to 1114p after reassuring investors that annual profits were likely to be towards the upper end of the range analysts expect.
Crest warned of a hit of about £130million from extra building safety costs. Crest shares still eked out an 2.9 per cent, or 4.6p, or 161p. Housebuilders, traditionally a barometer of the wider economy, have been friendless of late as concerns about growth and the UK’s fiscal creditability deepen.
