Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Birmingham Post
Birmingham Post
Business
Graeme Whitfield

Persimmon profits dip as builder aims to repair reputation with quality improvements

FTSE 100 house-builder Persimmon has posted a dip in profits after its efforts to improve quality slowed down the number of properties being sold.

The group reported profit before tax of £509.3 million for the six months to June 30, down from £516.3m.

Total group revenue was 4.5% lower at £1.75bn, as the number of new homes sold slowed to 7,584 compared with 8,072 this time last year.

Persimmon had already unveiled the lower sales rate in July, saying it had put the brakes on the process to ensure better customer satisfaction.

The company faced criticism last year as it handed out hefty bonuses to executives, despite relatively low customer satisfaction ratings.

But new chief executive Dave Jenkinson said the latest numbers showed it had made progress.

"Improving the quality and service delivered to our customers remains our top priority and I am encouraged with the progress made in the first half, which clearly shows that Persimmon is changing," he said.

"Our customer satisfaction ratings for the current HBF survey year are showing improvement and I am particularly pleased that, in July, Persimmon became the first house-builder to introduce a retention scheme for customers, placing us at the forefront of strengthened consumer rights for home-buyers."

He added: "I am proud of the commitment and dedication our teams have shown in supporting the many initiatives we have introduced to deliver a step change in our customers' experience.

"I am confident that the progress we are making with our initiatives, our strong forward build, healthy forward sales and robust balance sheet place Persimmon in a strong position for the second half."

The average selling price rose to £216,942, but remained lower than the national average for new-builds bought by owner-occupiers.

More than half of private sales were to first-time buyers.

Mr Jenkinson took over the top job at the housebuilder earlier this year following a controversial period where its former chief executive Jeff Fairburn came under fire for excessive pay and the company was heavily criticised for the standards of some of its homes.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.