Posted By Global Banking and Finance
Posted on January 14, 2025
(Reuters) - British housebuilder Persimmon forecast its 2024 underlying pre-tax profit to be around the upper end of market view on Tuesday, and said it was keeping a watch on the evolving macroeconomic and geopolitical uncertainties.
The British housing sector has been cautious in recent months due to concerns that a slow pace of interest rate cuts by the Bank of England could delay a demand recovery, while increasing cost issues have further dampened sentiment.
"We are mindful of evolving macroeconomic and geopolitical uncertainties, including the timing of future interest rate changes, and the effect that they may have on our market and consumer confidence in the short-term," CEO Dean Finch said in a statement.
Persimmon, which offers a range of homes from studio apartments to five-bedroom houses, said it built 10,664 homes in 2024, up 7%, and ahead of market expectations.
Its forward sales position - a key industry measure which gauges near-term demand - rose 8% to 1.15 billion pounds ($1.40 billion) as at the year end.
The builder said it expects underlying profit before tax for the year-ended Dec. 31 to be around the upper end of market expectations of 349 million pounds to 390 million pounds.
($1 = 0.8187 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich)
