Persimmon plc - Mixed end to the year sees completions target missed

Davy Research
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Persimmon missed its home completions target for 2021, delivering a 7% increase in deliveries versus its guidance of 10%. While that was delivered at an impressive 28% margin, the full year result is likely to come in below estimates. While long-term demand trends remain positive, the group continued to see negative impacts from COVID (staff absenteeism, customer delays), steep build cost inflation (+5%) and planning issues, which weighed on performance.