PERSIMMON has stated it is anticipating the group’s pre-tax profits will be ‘in line with our market consensus’ when final financial results for 2019 are released in late February.
In a trading update, the business revealed group revenues for the year are down 2.4% to £3.65 billion, while new housing revenues reduced by 3.5% to £3.42 billion.
New home legal completion volumes were 15,855 (2018: 16,449), with an average selling price of c. £215,700 (2018: £215,563).
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.
“Delivering the maximum benefit to our customers from our quality and service improvement initiatives will continue to be my top priority for 2020. I am pleased with the progress we have made in 2019 and there is more to do. 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.”
John Moore, senior investment manager at wealth management specialist Brewin Dolphin commented, “Persimmon continues to build on solid foundations. Having well-published issues last year, the business was faced with a choice between slightly lower margins and better customer care – from a long-term perspective, they appear to be making the right choice.
“Although revenues and delivery volumes are down, Persimmon’s numbers remain robust – particularly cash generation. The housebuilder also has good visibility over future sales – indeed, the potential interest rates cut mooted in the last couple of days would only serve to bolster the business, should it come to pass. Nevertheless, Persimmon is a well-invested and geographically diversified business and remains one of the favoured major housebuilders.”