Persimmon has built "strong foundations for growth" for the upcoming year, analysts have stated, after the housebuilder saw its revenue increase by 16% to £3.2bn in the year to 31 December.

In this period, the firm recorded a 2% jump in profit before tax to £395.1m, while its operating profit increased by 14% to £405.2m.

Persimmon completed 10,664 new homes in the year, while its new housing revenue jumped by 13% to £2.9bn.

The firm’s underlying earnings per share also increased by 12% in the year, standing at 92.1 pence.

However, its dividends remained flat at 60 pence per share.

Group chief executive at Persimmon, Dean Finch, said: "Persimmon's disciplined investment and significant operational improvements in recent years has created a stronger business. This is demonstrated by our growth in 2024, with completions, outlets and profit all up.

"The underlying market fundamentals remain strong and we are encouraged by the further improvement in our sales rates in the early weeks of this year. The Government's welcome planning reforms and pro-housebuilding agenda demands more of the high-quality, affordable homes which are Persimmon's core strength, providing a positive tailwind."

In its outlook for 2025, Persimmon said it had started the year with an "improved forward order book", which has continued to grow, despite the "ongoing macroeconomic and geopolitical uncertainties".

Given theprogress, it said it was targeting between 11,000 and 11,500 home completions in the current year. The housebuilder is also targeting growth in profit and returns in line with market expectations, along with an "improved underlying operating margin in 2025".

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, concluded: "Persimmon’s built solid foundations for growth in 2025, with strong demand helping profits beat market expectations.

"As always though, markets are forward-looking, so it was the guidance for 2025 and beyond that captured investors’ attention. Early industry data shows the UK housing market has started the year on relatively firm footing, and Persimmon expects completions in the 11,000-11,500 range in 2025, up 5.5% at the mid-point. It’s hoped that the group’s in-house materials businesses will keep a lid on build-cost inflation, which should be limited to low single digits.

"With Persimmon’s houses typically being priced more than 20% below the national average, demand should hold up relatively well even if the current affordability pressures persist, making Persimmon a strong pick for investors looking to gain exposure to the sector."

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