4th Jul 2019 08:54
(Alliance News) - Persimmon PLC on Thursday said its decision to focus on increasing quality and customer service resulted in lower revenue growth and legal completions for the the first half of 2019.
Shares in the FTSE 100 listed company were down 2.3% at 1,941.00 pence each in morning trade.
The UK housebuilder said revenue for the six months to June 30 will total GBP1.75 billion, down from GBP1.83 billion recorded in the year ago period, with legal completions down to 7,584 from 8,072. Average selling prices in the period were GBP216,950, up slightly from GBP215,813.
Persimmon recently launched an independent review of its quality and customer care operations following criticism over its poor build quality.
The company is scheduled to release the results and recommendations of the review in the final quarter of 2019.
"Although we are still in the early days of our improvement plans our customer satisfaction rating, as measured by the HBF, has increased during the period," said Chief Executive Dave Jenkinson.
"Our progress on customer service shows that Persimmon is listening carefully to all stakeholders and making the changes needed to position the business for the future, while maintaining a robust trading performance. We enter the second half with our build programme well progressed, healthy rates of sale on site and an encouraging forward sales position," Jenkinson added.
Persimmon expects the decision to focus on customer service initiatives and hold back sites in certain locations for later release will lead to a reduction in the volume of new homes handed over to customers in 2019.
The company said it reduced its average number of active sales outlets in the first half to 345, down 8% on a year before. Its weekly private sales rate slipped only slightly to 0.74 from 0.78 a year ago.
The value of total forward sales as at June 30 was GBP1.62 billion, down from GBP1.68 billion a year ago.
"The impact of these actions in this financial year will ultimately depend on the strength of market conditions in these locations during the second half as sites and plots are released for sale at the appropriate stage of construction," the company said.
Persimmon is scheduled to release its half-year results on August 20.
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