Persimmon Plc - Third Quarter Trading Statement
THIRD QUARTER TRADING STATEMENT
"Persimmon's top priority is the delivery of higher levels of quality and customer service through the implementation of its detailed customer care improvement plan. Central to this plan is putting customers before volume, with sales volumes in the first half of the year being 6% lower than last year, together with making significant additional investments in both our annual customer care resources, by c.
"The Group has continued to make good progress with these plans through the second half. On 1 July Persimmon became the first
"I am confident that the continued successful implementation of our detailed customer care improvement plans together with our strengthened forward build position, healthy forward sales, robust balance sheet and industry-leading land holdings provide a sound platform for the successful future development of the Group.
Trading over the summer weeks was in line with our expectations, with the Group seeing the usual pick-up in customer activity as we moved into the autumn season. Consumer confidence has remained resilient despite the continued uncertainties around the timing and nature of the
The Group is well positioned in its regional markets, remaining focused on delivering a good range and choice of new homes at lower price points, the Group's average selling price being c.17% lower than the national average for newly built homes sold to owner occupiers. Supporting sustainable communities and delivering housing to lower income families in the communities we serve remains a key component of the Group's development approach, with over 2,100 new homes being delivered to our housing association partners in the financial year to date.
The Group is encouraged by the ongoing progress being made through the implementation of its detailed customer care improvement plan, achieving the Four Star status level in the most recent HBF quarterly customer satisfaction survey, and trending strongly ahead of that threshold in recent months. Whilst we now believe we have sufficient momentum to be confident of an overall rating of Four Stars for the 2018/2019 survey year as a whole, our recent actions together with additional initiatives that are currently being introduced should enable the Group to continue to deliver sustainable improvements in quality and customer service into the future.
As previously reported, to support our customer care improvement plans, we have continued to restrict the release of new homes for sale in higher demand areas until construction reaches the appropriate advanced stage, both on selected new sites and, in some cases, on existing sites. As expected, this has reduced the number of sales reservations that earlier release would have delivered and resulted in the Group having c. 5% lower average active sales outlets year on year, at c. 350 sites. Our substantial additional investment in work in progress, which amounted to c.
Trading has continued to be resilient through the second half of the year with the Group's average weekly private sales reservation rate per site of c. 0.67 being in line with last year. We are now fully sold up for the current year and have c.
In the first half of the year the Group's approach of releasing homes for sale only at a more advanced stage of construction resulted in total legally completed sales volumes reducing by 6% year-on-year to 7,584 homes. Whilst we currently expect our consistent application of this approach to result in a similar situation in the second half of the year, we anticipate that second half volumes will be greater than for the first half, reflecting the normal seasonality of the market.
In the second half of 2018, in response to customer feedback, the Group launched a new business, FibreNest, to provide ultrafast, full fibre to the home broadband services. The Group has continued to invest in establishing its full fibre network and currently has over 3,350 customers enjoying this fast and reliable service across more than 100 developments, with plans for a continued rollout.
We are mindful of the uncertainties facing the
We will give a further update on progress and trading, following the year end, on Wednesday
Persimmon will host a conference call with analysts at
Further information, please contact:
| || |
| || |
| || |
Tel: +44 (0)1904 642199
Tel: +44 (0)20 7638 9571
| || |
 National average selling price for newly built homes sourced from the
 Economic Toolkit estimate
This information is provided by RNS, the news service of the
Quick facts: Persimmon
Market Cap: £5.67 billion
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...FOR OUR FULL DISCLAIMER CLICK HERE