UK homebuilder Persimmon flags cost concerns after strong Q3 sales
Increased employer national insurance to impact costs
More planning permissions have provided a boost
Net private sales rate/outlet since H2 start up 37% y-o-y
Recasts with share price, paragraph 5, UK budget context in paragraph 6-7
Nov 6 (Reuters) -British homebuilder Persimmon's PSN.L sales rates since the start of the third quarter were well ahead of last year, it said on Wednesday, but flagged concerns about higher costs emerging in price negotiations for 2025.
The prospect of rising costs that could offset an improvement in sales across the British building sector is underscored by expectations rising inflation, spurred by the UK government's October budget, will lead the Bank of England (BoE) to delay interest rate cuts.
The BoE is due to annouce a rate decision due on Thursday.
"We are working closely with our supply chain to manage our costs, which will also be impacted by new building regulations and the employer national insurance increases announced in the recent (UK) budget," the company said in a statement.
Shares in the FTSE 100-listed .FTSE builder dropped by more than 2% in early trade, underperforming the wider sector.
In her first budget since the Labour government took office, British finance minister Rachel Reeves raised employers' social security contributions by 1.2 percentage points to 15% from April to raise revenue. Some companies have said it could hinder economic growth due to elevated payroll costs.
Since the government took office in July, however, a rise in planning permissions has given Persimmon a boost.
It said net private sales rate per outlet rose 37% year-on-year since the start of the second-half period on July 1.
The company, which offers a range of homes from studio apartments to five-bedroom houses, said its private forward sales position since July 1 jumped 40% to 1.45 billion pounds ($1.87 billion).
Last month, another homebuilder Vistry also flagged cost concerns. It cut its annual profit forecast after discovering that one of its divisions had understated the cost of some of its developments, and analysts had raised questions whether the issues flagged were one-off and were company-specific problems.
Persimmon's bigger rival Barratt Redrow BTRW.L last month said it was beginning to see more stable market conditions with increased mortgage affordability.
($1 = 0.7770 pounds)
Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Varun H K and Barbara Lewis
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
