Persimmon has reiterated its house completions guidance for the full-year, after its new housing revenue increased by 12% year-on-year to £1.31bn in its half-year results.

In the six months to 30 June, the housebuilder recorded a 14% annual increase in its group revenue, totalling £1.5bn and its underlying profit before tax jumped by 11% to £164.9m in the same period.

Furthermore, its operating profit increased by 13% to £172m, which Persimmon said was driven by increased volume and ongoing operational discipline.

Group chief executive at Persimmon, Dean Finch, said that he is pleased that the firm has continued to grow in the first half of the year, "despite challenging market conditions and with affordability still an important constraint".

He stated: "Our average sales price, sales, completions, planning approvals, active sites and forward order book are all up, many against industry trends, showing that our strategy including a focus on self-help has continued to deliver. An improvement in operating profit and return on capital demonstrate the benefit of our on-going operational discipline.

"We continue to invest in our key capabilities to further strengthen this growing platform. Disciplined investment in land is being complemented by planning success to secure additional site openings. Our vertical integration strengths have been further enhanced, with more efficiency benefits to come. Our three-brand strategy is helping to increase sales, with investment in marketing seeking to drive further growth.”

In its outlook for the rest of the year, Persimmon said was on course to deliver between 11,000 and 11,5000 home completions in 2025, in line with previous guidance.

The housebuilder also stated that expects its volume to grow to around 12,000 units in 2026.

Head of markets at interactive investor, Richard Hunter, said that while the numbers “do not shoot the lights”, there is evidence that Persimmon continues to “propel those levers within its control”.

He concluded: “The sector is highly cyclical and the current UK economic backdrop is unstable. General uncertainty, mortgage availability concerns, slowing construction activity and pressures arising from increases to the likes of National Insurance and stamp duty are meaningful headwinds.

“That being said, there are a number of tailwinds which could yet revitalise the sector. More broadly, there remains a noticeable supply shortage of homes domestically, Government reforms to planning should oil the wheels of being able to break ground, and the recent interest rate cut is a step in the right direction if not the ultimate goal. At the same time, the group has noted that for some, inflation-beating pay rises and the relaxation of lending rules has led to higher enquiry rates.

“Even as a preferred play within the sector, Persimmon has been hamstrung by the wider factors over which it has little influence, including but not limited to a faltering domestic economy. However, by the same token this has left the shares on an undemanding historic valuation which, alongside the group’s particular order book and land bank strengths leads to a market consensus of a strong buy, especially with the longer term in mind.”

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