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Wales Online
Wales Online
National
Grant Prior & Sophie Goodall

Persimmon predicts growth in sales due to improved customer service and cost efficiency measures

Housebuilder Persimmon has forecast sales growth over the next year, citing customer service and quality improvements, and cost efficiency considerations, such as taking more aspects of production in-house.

Figures show that Persimmon make an average profit of £66,442 per home. The housebuilder completed 14,551 homes in 2021, with an average selling price of £237,078. It has been reported that shareholders received dividends of £748m during 2021, with similar returns earmarked for this year.

Group Chief Executive Dean Finch said: "The new year’s trading has started well, with private sales rates ahead by c. 2% in the opening weeks and a robust forward sales position of £2.21bn. We expect to grow our outlet position in 2022 and are targeting volume growth of 4-7% on 2021 levels."

Persimmon confirmed that bonus payments are now influenced by build quality. The housebuilder said: "Our senior management bonus scheme was restructured last year to incorporate build quality and customer service targets.

"In the current year, this approach is being extended across the organisation, including to our site management teams. Our sub-contract tendering process has been revised to emphasise quality and customer service performance alongside cost efficiency considerations."

Persimmon has also increased its team of Independent Quality Controllers, who check construction standards, from 29 to 60. It said: "We believe this is the largest independent team of inspectors in the industry. Each key stage of development must be independently verified as complete and at the required standard before further work can continue."

Persimmon’s in-house production is due to be increased. It said: "Our Space4, Brickworks and Tileworks factories have also proven crucial tools in both maintaining security and consistency of supply and securing build efficiencies, especially in a period of material and labour cost inflation. Through the bulk buying of raw materials and stable labour costs within our factories, we have been able to maintain a price advantage compared to the open market.

"Further, our use of Space4 timber frames in 33% of our homes built in the year, reduces our reliance on bricklayers, where labour shortages have been most pronounced. These factories will play an increasingly crucial role in our security of supply, quality control and drive to secure cost-efficiencies. We are already looking to expand production – through increased shifts and product lines – across our Brickwork and Tilework factories.

“We anticipate increasing output at Brickworks by 25% and at Tileworks by over 50% this year. We also plan to start building a new Space4 factory in 2022, updating the technology and techniques to drive enhanced quality and further efficiency gains. We anticipate – for example – that the new factory’s product will improve our speed of build by up to five days per house.”

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