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Companies Reporting: Berkeley, Persimmon, Vistry, Balfour Beatty

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Our regular look at the FTSE 350 and a selection of other companies reporting from 11 – 15 March

  • Berkeley’s fourth-quarter trading will be in focus
  • Is there any scope for improvement for Balfour?
  • Persimmon are hoping positive momentum continues into the new year
  • Vistry’s strategy change remains front of mind

Persimmon, Full Year Results, Tuesday 12 March

Aarin Chiekrie, equity analyst, Hargreaves Lansdown “Persimmon’s LON:PSN already told investors that its full-year sales rates fell around 16% in 2023, as high interest rates and the removal of the Help-to-Buy scheme have weighed on affordability. As a result, total completions of new homes were reduced by around a third, to 9,922. These lower volumes, coupled with build-cost inflation, mean operating profit margins are set to roughly halve, to around 14%, when Persimmon reports full-year numbers on Tuesday.

There was a “strong improvement” in fourth-quarter sales rates and investors are keen to see if this uplift has carried over to the new year. Markets expect operating profits to grow at double-digit rates to around £398mn in 2024. And with early signs that challenges for buyers are easing, there will be a focus on where Persimmon lays the marker for its 2024 guidance.”

Balfour Beatty, Full Year Results, Wednesday 13 March

Derren Nathan, head of equity research, Hargreaves Lansdown “Following a reassuring trading update in December, investors shouldn’t be expecting too many banana skins when infrastructure group, Balfour Beatty LON:BBY, reports its 2023 results next week. Markets were already told that higher HS2 volumes and increased airport business in Hong Kong have driven full-year revenues up by about 5% from £8.9bn. And even after the government’s decision to scrap phase 2 of HS2, investors should see a slight increase in the order book – which totalled £16.4bn at the half-year mark.

Underlying operating profit is set to remain in line with last year’s result of £232m, implying a low single-digit margin. Investors will be keen to hear if there’s any scope for improvement. Meanwhile, average net cash is set to land in the £650-700mn range, supporting the share buyback that began in January. The full extent of the 2024 program is expected to be announced in the results.”

Vistry, Full Year Results, Thursday 14 March

Aarin Chiekrie, equity analyst, Hargreaves Lansdown “Vistry LON:VTY looks set to report full-year underlying revenue of around £4.0bn in next week’s results, down from £4.5bn in the prior year. This comes as the number of new homes completed fell by 914 to 16,124 and average selling prices slipped 4.2% lower, to around £277,000.

Investors hoping to hear more details on how the group’s transition away from traditional housebuilding to a partnerships-focused model has gone. This new strategy means that the group’s partners foot most of the bill, which reduces Vistry’s risk and frees up cash to deploy elsewhere in the business. But it comes at a cost – the margins on this kind of work aren’t as juicy, and markets are expecting operating profits to fall around three percentage points, to 11.6%, as a result.”

Berkeley, Q4 Trading Statement, Friday 15 March

Aarin Chiekrie, equity analyst, Hargreaves Lansdown “Berkeley’s LON:BKG London focus and higher-end product means it offers something different to the other large housebuilders. First-half revenue of £1.2bn was broadly flat year-on-year. A 14.2% fall in the number of house sales was offset by higher average selling prices of around £624,000 as the mix of properties sold shifted.

Next week, the group’s set to give markets a look into its fourth-quarter trading. Investors expect to hear that demand in the key London area has held up better than in most other parts of the country, thanks to both its domestic and international appeal. The long-term profit outlook will also be in focus, with Berkeley expecting at least £1.5bn of pre-tax profits over the three financial years ending April 2026. Markets are looking for full-year pre-tax profits of around £544mn this year, which if all is tracking well would put that target well within reach.”

This article has been brought to you in association with Hargreaves Lansdown. All opinions expressed in this article are from the analysts and do not necessarily represent the opinions of The Armchair Trader.

FTSE 100, FTSE 250 and selected other companies scheduled to report

11-Mar
HgCapital Trust Full Year Results
12-Mar
Domino’s Pizza Full Year Results
Foresight Solar Fund Full Year Results
Genuit Group Full Year Results
Hill & Smith Full Year Results
Persimmon Full Year Results
Target Healthcare Half Year Results
TI Fluid Systems Full Year Results
TP ICAP Full Year Results
13-Mar
4imprint Full Year Results
Balfour Beatty Full Year Results
F&C Investment Trust Full Year Results
Ferrexpo Full Year Results
Hochschild Mining Full Year Results
Industria de Diseno Textil Full Year Results
IP Group Full Year Results
Keywords Studios Full Year Results
Supermarket Income REIT Half Year Results
14-Mar
Bridgepoint Full Year Results
Empiric Student Property Full Year Results
Helios Towers Full Year Results
IG Group Q3 Trading Statement
Moonpig Q4 Trading Statement
OSB Group Full Year Results
Savills Full Year Results
Trainline Q4 Trading Statement
Vistry Full Year Results
15-Mar
Berkeley Q4 Trading Statement
Volution Half Year Results

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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