By Erikka Askeland
Persimmon Homes has reported a slowdown in sales and new housebuilding as it implements a “customer care improvement” plan in the wake of a critical report on the quality its work.
The company also announced the departure of a key non-executive board member, who had been brought in to ensure there would be no repeat of recent pay scandals, just 18 months after she joined.
The UK’s second-largest housebuilder said completions, private home sales, revenues, and forward sales all declined as it delivers on its plan to put “customers before volume”.
The company had commissioned an independent review last year after it faced claims over poor build quality, customer service failings, and large payouts to top executives.
The review warned that the firm risked delivering “poor workmanship” and “potentially unsafe” homes.
The company’s former chief executive Jeff Fairburn left the housebuilder in 2018, a few months after he pocketed a
£75 million bonus.
In yesterday’s trading update, Dave Jenkinson, group chief executive, said he was “encouraged” by the company’s performance and positive housing market conditions, with total group revenues for the year reaching of £3.6 billion. This was a 2.4 per cent decline on the prior year’s £3.7bn.
The company added that new home legal completions for 2019 were 4% lower than last year, while total forward sales were down very slightly – around £41m – to £1.3bn.
Mr Jenkins said: “I am encouraged by the enthusiasm and commitment with which the whole Persimmon team is making the step change necessary to deliver higher levels of quality and service to our customers.
“When combined with Persimmon’s strong forward build and sales position, robust liquidity and industry-leading land holdings,
I am confident of the group’s
future success.”
The company also announced that non-executive director Claire Thomas will leave the board on February 1, having joined in August.
Ms Thomas said while she had seen “clear and determined efforts to transform the business”, she said her experience had “made clear to me
my preference for working in a
large-scale complex global
business environment”.
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