Persimmon revenues fall as firm spends on fixing building standards

Troubled house builder Persimmon reported a fall in full year revenue as it spent more cash fixing poor quality homes after an independent review last month slammed the standards of the company's work.

Group revenue was 2.4% lower at £3.65bn as Persimmon said it expected pre-tax profits to be in line with expectations.

The company has struggled to emerge from the furore over a £75m bonus paid to former chief executive Jeff Fairbairn. To compound its woes, the review said Persimmon “has traditionally been more a land assembler and seller of houses rather than a housebuilder” and its former executives were motivated by bonuses that “were widely perceived as excessive”.

New housing revenues fell 3.5% to £3.42bn, while new home legal completion volumes were down to 15,855 from 16,449, including private sales of 12,463 new homes, a fall from 13,341 in 2018.

On Tuesday it was revealed that Fairburn, who was forced to quit in 2018, has taken on the chief executive role at Yorkshire housebuilder Berkeley DeVeer after buying a 50% stake in the firm.