Proactive Investors - Persimmon PLC (LON:PSN) reports interim results on Thursday, 10 August, after opting out of an anticipated trading update last month.
A difficult start to the year for prospective homeowners had seen the FTSE 100-listed builder pen a 37% slump in sales rates during the first quarter to 0.62, as rising interest rates hit the market.
A slight uptick in sales toward the end of last year may have provided some relief though, according to Hargreaves Lansdown (LON:HRGV) analyst Aarin Chiekrie, with Thursday’s update set to show if any of this has fed through.
Lower sales during the first quarter saw Persimmon cut investments into new land however, Chiekrie pointed out, a move likely to have been carried through to the next three months.
“Analysts expect to see this trend continue when Persimmon releases its half-year results next week,” he said.
Though Persimmon anticipates completions will sit around 9,000 builds this year – marking the top end of guidance – rival Barratt Development PLC’s update last month may leave investors questioning this.
Barratt had reported profits in line with expectations, but forecast completions to fall as much as 20% over the year on the back of a “significant deterioration in demand”.
Signs of easing costs given stubborn inflation could also be worth keeping an eye on, Chiekrie hinted, though stark expectations of a 60% fall in Persimmon’s operating profit to £366 million for the year remain.