Persimmon PLC on Wednesday said it expects to reach the top end of its 2023 expectations, despite a drop in sales in the first quarter.

The York-based housebuilder reported net private sales per outlet of 0.62, down 37% from 0.98 a year ago, but up from 0.30 in the final quarter of 2022.

‘Customer interest remains good, with our marketing campaigns continuing to generate healthy traffic to site and online,’ the firm said.

The firm noted that forward sales also dropped on a yearly basis to £1.7 billion, 30% less than £2.4 billion the year prior, but up compared to £1.0 billion in the final quarter of 2022. The company said £1.0 billion of sales related to private forward sales, down 47% from £1.8 billion a year ago.

New home completions fell 42% to 1,136, from 1,950, which the company attributed to the reduced forward sales position.

Despite the reduction in completions, Persimmon said it expects full-year new home completions at the top end of its 8,000-9,000 guidance, ‘if sales rates continue around the level seen year to date,’ the firm said, adding that it anticipates average open sales outlets will remain flat at 250-260 outlets during 2023.

Chief Executive David Finch said: ‘Our performance in the first quarter was as we expected and reflects the challenging trading conditions in Q4 2022 and consequent lower forward order book as we entered the year. Trading over recent weeks has offered some signs of encouragement with visitor numbers up, cancellation levels normalising and sales rates continuing the steady improvement evident since the start of the year.

‘Looking beyond 2023, Persimmon has a strong platform from which to grow outlets and volumes as the market recovers. We have an excellent pipeline of new land opportunities to support growth in 2024, subject to planning, and we are encouraged by the early signs of improved customer confidence.’

Persimmon shares rose 5.0% to 1,297.50 pence each in London on Wednesday morning.

Copyright 2023 Alliance News Ltd. All Rights Reserved.