Q4 2024 Persimmon PLC Trading Statement Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Aynsley Lammin - Investec - Analyst : Thanks very much. Happy New Year, everybody. Good morning. Just two questions from me, please. Just firstly, obviously, you mentioned good inquiry levels is the levels. It's early in the new year, of course, but I just wondered if you could give a little bit more color. Are you seeing anything on the reservation side, just in current trading as you look into the kind of early part of this year, given what we're seeing in the kind of macro from headlines on the media newspapers, et cetera? Any kind of a bit more context around how that may be kind of coloring your view into the early part of this year would be helpful. And then secondly, just on -- I think you're flagging up maybe 2% to 4% kind of level of type of build-cost inflation, what you've seen there, which costs are rising, labor, materials? Any more color there would be quite interesting as well. Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 14, 2025 / 9:00AM, PSN.L - Q4 2024 Persimmon PLC Trading Statement Call

Question: Aynsley Lammin - Investec - Analyst : Thanks very much.

Question: Will Jones - Redburn Atlantic - Analyst : Thank you, morning. I'll try three, if I can, please. First, just if you could help us with the mix of HA and private in the year finished, which was less HA than I would have expected but then a better volume number and how that might affect mix in 2025, please? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 14, 2025 / 9:00AM, PSN.L - Q4 2024 Persimmon PLC Trading Statement Call Second was just coming back to the consent -- the planning consent wins of 13,000. Do you think that reflects any of the momentum on NPPF? Or do you think that's really more about the company itself? And if NPPF gets going, could that 13,000 start to trend higher? And perhaps you could just tie that in with broad expectations on outlets. I think you mentioned another 100 or so for the year ahead, but maybe a view on the net figure? And then lastly, just I guess around pricing. You mentioned improving trends through the year. We can see the order book position, but there's obviously bulk and non-bulk kind of influences in there, but just where you are on like-for-like pricing as best you can describe and the tactics, I guess, as you head into spring. Thanks.

Question: Will Jones - Redburn Atlantic - Analyst : Right. Thank you.

Question: Harry Goad - Joh. Berenberg, Gossler & Co - Analyst : Yeah, good morning. I've got two, please. So firstly, can you just remind us what your ambitions are on building the Partnerships business over the next few years and whether some of the sort of news flow we hear about, sort of funding constraints to housing associations impacts that at all in 2025? And then secondly, different topic, land prices. Do you think some of those moves we've seen on NPPF result in lower land prices as we progress through this year with more consented land coming up for sale? Thank you.

Question: Harry Goad - Joh. Berenberg, Gossler & Co - Analyst : Lovely. Thank you.

Question: Ami Galla - Citigroup Inc - Analyst : Yeah, thank you. Just a couple of questions from me as well. First one, just on trading in the market, what are you hearing from mortgage lenders in terms of how are they seeing the sort of current market trends and the volatility around the rates? The second one was on the government measures. Is there -- incrementally, what are you hearing from the government on potential measures for the housing market given the affordability challenges? Is there any scope for any demand side support to come through later in the year? And the last one was on the order book. Can you give us some color in terms of what's the gross margin embedded in the order book today? Or any color in terms of where does underlying pricing sit in that order book? Thank you.

Question: Ami Galla - Citigroup Inc - Analyst : Thank you.

Question: Marcus Cole - UBS Group AG - Analyst : Good morning. Thanks for taking my questions. I've got two. The first one is just on sales outlook, probably building on Will's question. I just wondered if you think you can hold on to that 5% sales outlook growth on average for the whole of '25? And then the second one is just on margins. How should we think about margin evolution in '25 given what you said on build costs and pent-up demand and likely volume growth? Thanks.

Question: Marcus Cole - UBS Group AG - Analyst : Okay, thanks very much.

Question: Chris Millington - Deutsche Bank AG - Analyst : Thank you very much. Morning, Dean, Andrew, Becky. Thanks for taking my question. Three, if I may, I may as well continue the theme. Firstly, probably for you, Andrew, could you just talk us through what you think the kind of key cash movements are going to be in 2025 and perhaps if you expect any major change in year-end net cash? I'd love Dean's thoughts on the Building Safety Levy and its impact. Obviously, we've seen some reference in the press there. And the last one I wanted to ask is a slightly theoretical one. But what would you guys regard as a good recovered sales rate? The reason I ask that is I'm looking at your sales rate this year of 0.7, very similar to historic averages in the last 10 years. Obviously, it's got bulk in there. I mean, do you think this is a good level and you'd look to wean yourself off bulk? Or do you think the sales rate could move somewhat further? Thanks very much.

Question: Chris Millington - Deutsche Bank AG - Analyst : Got you. That's all very clear. Many thanks, gentlemen and Becky.

Question: Charlie Campbell - Stifel Financial Corp - Analyst : Morning, everyone. A couple from me. One, just wondered if you could shed some light on sort of first-time buyer activity, either sort of through the end of last year, beginning of this year. Any notable changes there? And secondly, just help on spreadsheets. Just wonder what the land creditor position was at the end of December. That would be helpful, too. Thank you a bunch. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 14, 2025 / 9:00AM, PSN.L - Q4 2024 Persimmon PLC Trading Statement Call

Question: Charlie Campbell - Stifel Financial Corp - Analyst : Thank you very much.

Question: Zaim Beekawa - JPMorgan Chase & Co - Analyst : Morning. Thanks for taking my question. Just two from my side. Just first one is to come back on build-cost inflation. Can you elaborate on some of those self-help measures that you're taking and how impactful it can be? And then secondly, how much of a pull forward in demand are you expecting due to the upcoming stamp duty changes? Thank you.

Question: Zaim Beekawa - JPMorgan Chase & Co - Analyst : Great. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 14, 2025 / 9:00AM, PSN.L - Q4 2024 Persimmon PLC Trading Statement Call