Persimmon keeps dividend flat as market set to 'remain challenging' into next year

Retail & Consumer Builders And Building Materials Written by: Oliver Haill 07:29 Thu 06 Aug 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup News Service, Gracenote... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Persimmon PLC ( LSE:PSN ) View Price & Profile Persimmon keeps dividend flat as market set to 'remain challenging' into next year Published: 07:29 06 Aug 2026 BST Persimmon PLC (LSE:PSN) kept its dividend flat as it reported double-digit growth in first-half profits and completions but flagged signs of softer demand in the second half. The FTSE 100 housebuilder posted interim results showing underlying operating profit rose 10% to £189.1 million, although the margin narrowed by 30 basis points to 12.8%. Statutory pre-tax profit climbed 15% to £168 million. Almost 5,190 home sales were completed in the six months to 30 June, up from 4,605 a year earlier. New housing revenue increased 13% to £1.48 billion, while the average selling price edged 1% higher to £285,752. Management expects to deliver around 12,500 homes in the full year, putting its forecast at the upper end of the 12,000-12,500 range given in April. Persimmon's recent trading suggested some cooling in the open market. The net private sales rate excluding bulk deals fell to 0.59 from 0.61 in the five weeks since June, while weaker enquiries were seen during July. The overall sales rate, including bulk transactions, rose 6% to 0.72, while the private forward order book increased 5% to £1.31 billion. Net debt stood at £165 million at the end of June, against net cash of £123 million a year earlier. The interim dividend was held at 20p. Chief executive Dean Finch said: "Market conditions remain challenging, with affordability constraints and build cost pressures affecting the sector." He said Persimmon's response was to focus on driving operational efficiencies, with the group's "disciplined land buying, industry-leading cost efficiency and vertically integrated operating platform [giving] us important structural advantages as we seek to mitigate cost pressures and support growth". Guidance for underlying pre-tax profit was maintained in line with market expectations, but Finch warned of "additional inflationary pressure in 2027", including from the Middle East conflict, though the medium-term ambition to achieve a 20% housing operating margin and 20% return on capital remained. Continue reading