Customer service push dents Persimmon revenue
Housebuilder Persimmon has reported falls in revenue and housing completions, citing its desire to put “customers before volume”.
Total group revenue tallied £3.7bn during the year ending 31 December, 2.4% down on the previous year, amid ongoing efforts to improve its build quality and customer service.
Completions in 2019 were 4% down on the previous year at 15,855, while new housing revenue dropped by 3.5% to £3.4bn.
Housebuilder Persimmon has reported falls in revenue and housing completions, citing its desire to put “customers before volume”.
Total group revenue tallied £3.7bn during the year ending 31 December, 2.4% down on the previous year, amid ongoing efforts to improve its build quality and customer service.
Completions in 2019 were 4% down on the previous year at 15,855, while new housing revenue dropped by 3.5% to £3.4bn.
The average selling price for private sales was £241,975, up on last year’s equivalent of £238,373.
Total forward sales were valued at around £1.4bn. Group pretax profit is forecast to be “in line with market consensus”.
Dave Jenkinson, group chief executive, said: “Persimmon continues to make good progress with the implementation of its customer care improvement plan. Central to this plan is putting customers before volume, with new home legal completions for 2019 being 4% lower than last year.
“Action taken to maintain our increased levels of work-in-progress investment, the increase in quality assurance and customer service resources, and our plans for the implementation of the recommendations of the recent independent review, will all add to our momentum.”
The news comes as non-executive director Claire Thomas, who joined the company in August, plans to step down on 1 February.
Thomas said: ““I have valued being part of the Persimmon board and the experience it presented, but it has also made clear to me my preference for working in a large-scale complex global business environment.”
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