Persimmon CEO announces plans to step down

Persimmon said improving build quality and the service delivered to customers were its top priorities in 2019

The York-based firm said he has signalled his intention early to give the board good time to recruit a successor and he will remain in the CEO role and fully committed to leading the ongoing programme of change for as long as the business requires.

Mr Jenkinson was appointed permanent chief executive just a year ago after four months as interim CEO and has been credited with improving the group's customer service following strong criticism about customer satisfaction levels.

Mr Jenkinson said: "When I took over some 16 months ago I had a job to do. It was really important that I stabilised the business. I wanted to change the culture of the business to some extent and I wanted to change the company. We've done that by putting customers before volume.

"Importantly this has been recognised by the star rating. We achieved a four star rating in the 18/19 period.

"It just feels like the period of the change and the success of that change has happened quickly. I've been really pleased with the response. Maybe it arrived a bit quicker than I thought it would be.

"It just feels right that I give the board plenty of time to get somebody else to come and replace me. It's part of the evolution of the business and bringing in fresh ideas when maybe in 12 months time I leave the business."

When asked how long it will take to find a successor, Mr Jenkinson said: "It will take as long as it needs and that's why I wanted to give them plenty of time to find the right person to lead the business. I'm still going to be running the company until that happens. I'll be here as long as the business needs me."

He said he has no plans for his next move, but hopes to take a bit of time off to be with his family.

"I'm extremely proud of the business. The business is in great hands moving forward and has a solid base," he said.

"We've had material improvement and we're trending nearer five star than four star."

The company, which was heavily criticised by an independent review of its business practises in December, also reported a 4.6 per cent fall in pre-tax profit to £1.04bn in 2019, which was expected as a result of the new focus on quality rather than quantity.

Analyst Charlie Campbell at Liberum said: "Persimmon's pre-tax profit was down 5 per cent to £1041m, with volumes down 4 per cent, as flagged, to resolve the well-known quality issues, but operating margins have been broadly maintained.

"Quality issues have now been largely resolved. The year has started well."

Persimmon saw revenue decline by 2.4 per cent to £3.65b for the year after it sold 15,855 new homes, down 4 per cent on the previous year.

The average selling price increase over the period, rising to £215,709 from £215,563 in 2018.

It added that customer demand has been encouraging in the initial weeks of 2020, with sales rates tracking above previous years.