The latest updates issued by Persimmon and Vistry group (formerly Bovis) show that Persimmon´s revenues and completions have fallen as it “continues to make good progress with the implementation of its customer care improvement plan”. The company has endured a 4% drop in new home completions to 15,855 against 2018 in its mission to put customer service before volume, even though the company´s average selling price of £215,700 was “in line with” the previous year’s £215,563.
Even though Persimmon noted a 2.4% drop in group revenues to £3.65 billion, they said that they had ¨traded well¨, considering the implementation of the measures taken to improve on quality and customer service and expect pre-tax profits to match market consensus.
As of 31 December 2019, the company´s total forward sales value stood at £1,356 million against 2018’s £1,397 million. The Group CEO, Dave Jenkinson said “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.”
Vistry Group reported that they anticipated achieving another record year of profits. The company experienced a rise of 3% to 3,867 homes against 2018, following a ¨controlled¨ period end and slight lift in the average selling price of the homes to £341,000 from 2018’s £337,400. They also noted a 1-2% reduction in underlying sales prices during the second half of the year caused by market uncertainty surrounding Brexit and the general election, however, this was partly offset by cuts that were made to build costs and a lack of ¨cost inflation¨ which should result in an increased operating margin for the year ahead.
Due to Vistry´s improvements in their customer service and quality control, the firm is enjoying a strengthened customer satisfaction rating, reported at above 90%, which is equivalent to a 5-star rating.
Having recently acquired Linden Homes and Vistry Partnerships, the firm is also expected to report exceptional costs of £15 million.