Persimmon Shares Fall After Firm Warns of Lower H1 New Home Volumes
2022.07.07 12:16
By Scott Kanowsky
Investing.com — Shares in Persimmon (LON:PSN) dropped on Thursday after the British homebuilder warned of a downturn in the volume of new houses delivered in the first half of the year.
In a trading update, the company said 6,652 new homes will be completed during the period – a decline of more than 10% compared to 2021, and slightly below company estimates.
Persimmon said this fall stemmed from planning delays and shortages in both material and labor, adding that it will also lead to a lower operating margin.
Meanwhile, total half-year revenues are seen slipping by more than 8% to £1.69 billion.
But the group said it will still deliver earnings “modestly” above expectations, as a recent spike in house prices will help offset pressures from energy costs and supply constraints. Persimmon also expects new home demand in the U.K. to remain strong.
