Blue Chip stocks show government policy can split market fortunes

The article reports that Persimmon saw rising completions, land purchases and cash balances, while Whitbread flagged extra business-rate costs alongside cost savings and revenue gains at Premier Inn.

Government policy and market conditions are affecting large UK companies in different ways, the article reports. Persimmon has reported higher home completions, fresh land purchases and a reported net cash position. Whitbread has reported extra costs from business-rate changes alongside targeted savings and operational moves at Premier Inn. The piece frames these results as examples of how policy and sector trends can split outcomes for blue chip firms. Key updates: - The article mentions Persimmon bought £210 million of land in the first half, increasing its land bank from 82,000 to 84,750 plots, and says it operates three manufacturing sites that the group estimates save about £5,500 per plot. - The article mentions Persimmon reported a 12% rise in home completions, a 4% increase in average selling price to £278,000, forward sales of £1.172 billion and an expected year-end net cash position of £116 million; it also set housing operating margin guidance and pre-tax profit ranges for the current and following year. - The article mentions Whitbread estimated an additional business-rates hit that was initially £40–50 million and is reported as reduced to about £35 million, while the group is targeting cost savings of £75–80 million and pursuing sale-and-leaseback and buyback actions. - The article mentions operational performance at Premier Inn, with UK RevPAR reported up about 3% (4% over the last six weeks), stronger sales in recent weeks, and Premier Inn Germany said to be likely to contribute a profit this year; Whitbread’s longer-term aim for Germany is cited as £70 million adjusted pre-tax profit by 2030 from 20,000 rooms. Summary: The article presents Persimmon and Whitbread as contrasting examples of how policy, costs and sector dynamics are affecting large UK firms. Persimmon’s update emphasises land purchases, production cost savings and improved completions and cash, while Whitbread’s update highlights an added business-rates cost alongside efficiency measures and regional growth plans. The companies’ reported guidance and programmes are the next indicated milestones for tracking developments.