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{{short description|British housebuilding company}} |
{{short description|British housebuilding company}} |
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{{Use dmy dates|date= |
{{Use dmy dates|date=January 2023}} |
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{{Use British English|date=March 2017}} |
{{Use British English|date=March 2017}} |
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{{Infobox company |
{{Infobox company |
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| foundation = {{start date and age|df=yes|1972}} |
| foundation = {{start date and age|df=yes|1972}} |
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| location = [[York]], England, UK |
| location = [[York]], England, UK |
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| key_people =Roger Devlin ([[Chairman]])<ref>{{cite web|url=https://www.scottishconstructionnow.com/article/persimmon-appoints-roger-devlin-new-chairman|title=Persimmon appoints Roger Devlin as new chairman|date=15 March 2018|publisher=Scottish Construction Now|access-date=1 August 2021}}</ref><br> |
| key_people =Roger Devlin ([[Chairman]])<ref>{{cite web|url=https://www.scottishconstructionnow.com/article/persimmon-appoints-roger-devlin-new-chairman|title=Persimmon appoints Roger Devlin as new chairman|date=15 March 2018|publisher=Scottish Construction Now|access-date=1 August 2021}}</ref><br>Dean Finch ([[CEO]])<ref name="TCI-03Mar2021"/> |
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| industry = [[Home construction|Housebuilding]] |
| industry = [[Home construction|Housebuilding]] |
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| products = |
| products = |
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| revenue = {{decrease}} [[Pound sterling|£]] |
| revenue = {{decrease}} [[Pound sterling|£]]2,773.2 million (2023)<ref name=results>{{cite web|url=https://www.persimmonhomes.com/corporate/media/pikpbjfi/persimmon-2023-results.pdf|title=Preliminary Results 2023|publisher=Persimmon plc|access-date=12 March 2024}}</ref> |
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| operating_income = {{decrease}} [[Pound sterling|£]] |
| operating_income = {{decrease}} [[Pound sterling|£]]346.9 million (2023)<ref name=results/> |
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| net_income = {{decrease}} [[Pound sterling|£]] |
| net_income = {{decrease}} [[Pound sterling|£]]255.4 million (2023)<ref name=results/> |
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| num_employees = 6,000 (2023)<ref>{{cite web|url=https://www.persimmonhomes.com/news/chairman-addresses-prestigious-cardiff-business-club|title=Chairman addresses prestigious Cardiff Business Club|date=5 June 2023|publisher= Persimmon|access-date=11 February 2024}}</ref> |
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| num_employees = 5,221 (2020)<ref name=results/> |
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| parent = |
| parent = |
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| subsid = [[Charles Church Developments|Charles Church]]<br />Westbury Partnerships<br />Space 4 |
| subsid = [[Charles Church Developments|Charles Church]]<br />Westbury Partnerships<br />Space 4 |
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| homepage = {{nowrap|{{ |
| homepage = {{nowrap|{{URL|https://www.persimmonhomes.com}}}} |
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| footnotes = |
| footnotes = |
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}} |
}} |
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'''Persimmon plc''' is a British [[home construction|housebuilding]] company, headquartered in [[York]], England |
'''Persimmon plc''' is a British [[home construction|housebuilding]] company, headquartered in [[York]], England. It is listed on the [[London Stock Exchange]] and is a constituent of the [[FTSE 100 Index]]. |
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==History== |
==History== |
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Persimmon was founded by [[Duncan Davidson (businessman)|Duncan Davidson]] in 1972. After leaving [[George Wimpey]], Davidson had formed Ryedale Homes in 1965, selling it to [[Comben Homes]] in 1972 for £600,000. |
Persimmon was founded by [[Duncan Davidson (businessman)|Duncan Davidson]] in 1972.The company is named after [[Persimmon (horse)|a horse]] which won the 1896 [[Epsom Derby|Derby]] and [[St. Leger Stakes|St. Leger]] for the [[Edward VII of the United Kingdom|Prince of Wales (the future Edward VII)]]. After leaving [[George Wimpey]], Davidson had formed Ryedale Homes in 1965, selling it to [[Comben Homes]] in 1972 for £600,000. Davidson restarted development again in the Yorkshire area; Persimmon began to expand regionally with the formation of an Anglian division in 1976 followed by operations in the Midlands and the south-west.<ref name="Dictionary">Wellings, Fred: Dictionary of British Housebuilders (2006) Troubador. {{ISBN|978-0-9552965-0-5}}</ref> In 1984, Persimmon bought Tony Fawcett’s Sketchmead company; Fawcett had been a director of Ryedale and he became deputy managing director at Persimmon. The enlarged company was floated on the [[London Stock Exchange]] in 1985, by which time the Company was building around 1,000 houses a year.<ref>Company Prospectus</ref> |
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Steady regional expansion took volumes up to 2,000 by 1988 with a target of 4,000 following the housing recession. Tony Fawcett had died in 1990 and in 1993 John White was appointed as chief executive with Davidson remaining as an executive chairman. In 1995, Persimmon made the first of a series of major acquisitions. [[Ideal Homes (UK housebuilder)|Ideal Homes]], once the largest housebuilder in the country and then part of [[Trafalgar House (company)|Trafalgar House]] was bought for £176m giving the Group a much stronger presence in the south-east. This was followed by the purchase of the Scottish housing business of [[John Laing plc]] and [[ |
Steady regional expansion took volumes up to 2,000 by 1988 with a target of 4,000 following the housing recession. Tony Fawcett had died in 1990 and in 1993 John White was appointed as chief executive with Davidson remaining as an executive chairman. In 1995, Persimmon made the first of a series of major acquisitions. [[Ideal Homes (UK housebuilder)|Ideal Homes]], once the largest housebuilder in the country and then part of [[Trafalgar House (company)|Trafalgar House]] was bought for £176m giving the Group a much stronger presence in the south-east. This was followed by the purchase of the Scottish housing business of [[John Laing plc]] and [[Tilbury Douglas|Tilbury Douglas Homes]].<ref name="Dictionary"/> |
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In 2001, Persimmon acquired [[Beazer|Beazer Homes UK]], for £612m, taking output to over 12,000 a year.<ref name="Dictionary"/> The deal came about after Beazer and Bryant announced a 'merger of equals' to create a new house builder called Domus.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/1118351.stm|title= |
In 2001, Persimmon acquired [[Beazer|Beazer Homes UK]], for £612m, taking output to over 12,000 a year.<ref name="Dictionary"/> The deal came about after Beazer and Bryant announced a 'merger of equals' to create a new house builder called Domus.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/1118351.stm|title=BUSINESS - Persimmon to enter Beazer race|work=BBC News |access-date=21 March 2015}}</ref> However, [[Taylor Woodrow]] stepped in with a £556 million bid for Bryant, and Persimmon bought Beazer, a company named after its founder Brian Beazer, and originally started in Bath. The acquisition of Beazer brought with it [[Charles Church Developments|Charles Church]], an upmarket housing business founded by Charles and Susanna Church in 1965.<ref>{{cite web|url=http://www.charleschurch.com/About|title=About Charles Church|work=charleschurch.com|access-date=21 March 2015}}</ref> |
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In January 2006 Persimmon acquired [[Westbury (housebuilder)|Westbury]], another listed UK house builder, for a total consideration of £643 million.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/4465540.stm|title= |
In January 2006, Persimmon acquired [[Westbury (housebuilder)|Westbury]], another listed UK house builder, for a total consideration of £643 million.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/4465540.stm|title=Business - UK housebuilders announce tie-up|work=BBC News |access-date=21 March 2015}}</ref> |
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In May 2024, Persimmon was reported to be considering a bid for [[Legal & General]]'s subsidiary [[CALA Homes|Cala Homes]], valued at around £1bn.<ref>{{cite news |title=Persimmon tipped for Cala bid |url=https://www.theconstructionindex.co.uk/news/view/persimmon-tipped-for-cala-bid |access-date=28 May 2024 |work=The Construction Index |date=28 May 2024}}</ref> |
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==Operations== |
==Operations== |
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==Criticism== |
==Criticism== |
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===Build quality=== |
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Persimmon has regularly been criticised for the poor build quality of some of its homes |
Persimmon has regularly been criticised for the poor build quality of some of its homes.<ref>[https://www.bbc.co.uk/blogs/watchdog/2010/05/new_homes.html BBC Watchdog: "More moans about new homes"] {{webarchive|url=https://web.archive.org/web/20110606030314/http://www.bbc.co.uk/blogs/watchdog/2010/05/new_homes.html |date=6 June 2011 }}</ref><ref>[http://charles-church.org.uk/New_homes_from_hell-charles_church.wmv ITV New Homes from Hell]</ref><ref>{{cite news|url=http://news.bbc.co.uk/2/hi/uk_news/england/northamptonshire/7792467.stm|title=Poorly-fixed lintel killed child|work= [[BBC News]]|access-date=21 March 2015}}</ref><ref>{{cite web|url=http://www.wiltshiretimes.co.uk/news/2264718.30k_damage_after_plumbing_nightmare/|title=£30k damage after plumbing nightmare|work=Wiltshire Times|access-date=21 March 2015}}</ref><ref>{{cite web|url=http://www.granthamjournal.co.uk/news/local/dream-homes-turn-into-a-nightmare-for-neighbours-on-persimmon-s-hunters-gate-development-in-grantham-1-6077739#ixzz48ip7n2FH|title=Dream homes turn into a nightmare for neighbours on Persimmon's Hunters Gate development in Grantham|publisher=Grantham Journal|date=23 May 2014|access-date=15 May 2016|archive-url=https://web.archive.org/web/20160810093830/http://www.granthamjournal.co.uk/news/local/dream-homes-turn-into-a-nightmare-for-neighbours-on-persimmon-s-hunters-gate-development-in-grantham-1-6077739#ixzz48ip7n2FH|archive-date=10 August 2016|url-status=dead}}</ref><ref>{{cite web |date=19 July 2018 |title=Persimmon homeowners in Newquay warn would-be buyers with signs |url=https://www.bbc.co.uk/news/uk-england-cornwall-44879858 |access-date=19 July 2018 |work=BBC News}}</ref> |
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⚫ | In 2008, a boy was killed by a falling mantelpiece. Persimmon, which sub-contracted company KD Childs to fit the fireplaces, had not checked the standards and had never received documents about how fireplaces were fitted. A mantelpiece had previously fallen at another Persimmon Home but was treated as a "one-off" incident.<ref>{{cite web|url=http://m.heraldscotland.com/news/12377261.Death_of_boy_was_caused_by_poorly__fixed_mantelpiece/|title=Death of boy was caused by poorly fixed mantelpiece|work=Herald Scotland|access-date=12 May 2016}}</ref> |
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In addition, Persimmon has been criticised for its sales and aftercare processes which do not always live up to the "enjoyable" and "stress-free" experiences promised in the company's own pledge.<ref>{{cite web|url=https://www.bbc.co.uk/programmes/articles/4VNJyVS7Z56pRTQm3j4bSYY/persimmon-house-builders|title=Persimmon Homes BBC Watchdog|work=BBC|access-date=15 May 2015}}</ref> |
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⚫ | Persimmon's build quality was the subject of a [[Channel 4]] ''[[Dispatches (TV programme)|Dispatches]]'' documentary broadcast on 15 July 2019.<ref name="O'Dwyer-15Jul2019">{{cite news |last1=O'Dwyer |first1=Michael |title=Market report: Persimmon slips as it apologises for TV show's home truths |url=https://www.telegraph.co.uk/business/2019/07/15/market-reportpersimmon-slips-apologises-tv-shows-home-truths/ |access-date=17 July 2019 |work=Telegraph |date=15 July 2019}}</ref><ref name="C4-15Jul2019">{{cite web |title=Britain's New Build Scandal: Channel 4 Dispatches |url=https://www.channel4.com/press/news/britains-new-build-scandal-channel-4-dispatches |website=Channel 4 |access-date=17 July 2019}}</ref> In August 2019, Persimmon appointed an independent team of construction quality inspectors to ensure its homes are built to required standards.<ref name="Morby-20Aug2019">{{cite news |last1=Morby |first1=Aaron |title=Persimmon calls in independent site quality enforcers |url=http://www.constructionenquirer.com/2019/08/20/persimmon-calls-in-independent-site-quality-enforcers/ |access-date=20 August 2019 |work=Construction Enquirer |date=20 August 2019}}</ref> |
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⚫ | In 2008 a boy was killed by a falling mantelpiece. Persimmon, which sub-contracted company KD Childs to fit the fireplaces, had not checked the standards and had never received documents about how fireplaces were fitted. A mantelpiece had previously fallen at another Persimmon Home but was treated as a "one-off" incident.<ref>{{cite web|url=http://m.heraldscotland.com/news/12377261.Death_of_boy_was_caused_by_poorly__fixed_mantelpiece/|title=Death of boy was caused by poorly fixed mantelpiece|work=Herald Scotland|access-date=12 May 2016}}</ref> |
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⚫ | In April 2019, Persimmon launched an independent review of customer care and quality of work following criticism. Persimmon had been ranked the lowest major housebuilder in the [[Home Builders Federation]] annual customer satisfaction survey.<ref name=guardian-20190406>{{cite news |url=https://www.theguardian.com/business/2019/apr/06/persimmon-housebuilder-launches-review-drive-rebuild-image |title=Persimmon launches review in drive to rebuild its image |last=Busby |first=Mattha |newspaper=The Guardian |date=6 April 2019 |access-date=6 April 2019}}</ref> The review, published in December 2019, criticised Persimmon for not having minimum construction standards, increasing the risk of build defects,<ref name="Prior-17Dec2019">{{cite news |last1=Prior |first1=Grant |title=Report blasts Persimmon over construction standards |url=http://www.constructionenquirer.com/2019/12/17/report-blasts-persimmon-over-construction-standards/ |access-date=18 December 2019 |work=Construction Enquirer |date=17 December 2019}}</ref> with a "systemic nationwide failure" of missing and/or incorrectly installed fire cavity barriers in its timber frame properties.<ref name="TCI-18Dec2019">{{cite news |title=Persimmon faces up to its failings |url=https://www.theconstructionindex.co.uk/news/view/persimmon-faces-up-to-its-failings |access-date=18 December 2019 |work=The Construction Index |date=18 December 2019}}</ref><ref>{{cite news |last1=Neate |first1=Rupert |title=Persimmon accused of building homes with 'intolerable' fire risk |url=https://www.theguardian.com/business/2019/dec/17/persimmon-accused-of-building-houses-with-intolerable-fire-risk |work=The Guardian |date=17 December 2019 }}</ref> In March 2021, Persimmon CEO Dean Finch announced plans to double the firm's team of independent quality inspectors to over 60 by the end of 2021.<ref name="TCI-03Mar2021">{{cite news |title=New Persimmon chief on quality control drive |url=https://www.theconstructionindex.co.uk/news/view/new-persimmon-chief-on-quality-control-drive |access-date=3 March 2021 |work=The Construction Index |date=3 March 2021}}</ref> |
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In 2013, Persimmon sold a house with a garage that was too narrow for some cars to fit into.<ref>{{cite news|url=https://www.examiner.co.uk/news/west-yorkshire-news/gallery---couple-left-fuming-4927317|title=GALLERY – Couple left fuming after finding garage at £200,000 Scissett home is too small for family cars|work=Examiner Live|date=18 May 2013|access-date=20 September 2018}}</ref> |
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In |
In2021, Persimmon built a block of properties the wrong way roundinColchester. The local authority required them to ensure the building was completedtothe original designs submitted.<ref>{{cite web|url=https://www.gazette-news.co.uk/news/19642421.cowdray-centre-developer-alter-homes-mistake/|title=Cowdray Centre: Developer has to alter homes after mistake|work=Colchester Gazette|access-date=13 October 2021}}</ref> |
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===Censorship=== |
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⚫ |
Persimmon's |
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In 2019 Persimmon paid to take control of and then shut down a [[Facebook group]], called Persimmon Homes Unhappy Customers, which detailed complaints about the company, and had almost 14,000 members.<ref>{{cite news|url=https://www.theguardian.com/business/2019/aug/20/persimmon-profits-fall-as-housebuilder-looks-at-repairing-reputation|title=Persimmon profits fall as housebuilder looks at repairing reputation|date=20 August 2019|newspaper=The Guardian|access-date=27 February 2024}}</ref> The company defended deleting the group.<ref>{{cite news|url=https://www.thetimes.co.uk/article/persimmon-defends-shutting-facebook-group-to-gag-critics-0hzcjn38l|title=Persimmon defends shutting Facebook group to 'gag critics'|date=5 July 2019|newspaper=The Times|access-date=27 February 2024}}</ref> |
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⚫ |
In April 2019 Persimmon launched an independent review of customer care and quality of work following criticism. Persimmon had been ranked the lowest major housebuilder in the [[Home Builders Federation]] annual customer satisfaction survey.<ref name=guardian-20190406>{{cite news |url=https://www.theguardian.com/business/2019/apr/06/persimmon-housebuilder-launches-review-drive-rebuild-image |title=Persimmon launches review in drive to rebuild its image |last=Busby |first=Mattha |newspaper=The Guardian |date=6 April 2019 |access-date=6 April 2019}}</ref> The review, published in December 2019, criticised Persimmon for not having minimum construction standards, increasing the risk of build defects,<ref name="Prior-17Dec2019">{{cite news |last1=Prior |first1=Grant |title=Report blasts Persimmon over construction standards |url=http://www.constructionenquirer.com/2019/12/17/report-blasts-persimmon-over-construction-standards/ |access-date=18 December 2019 |work=Construction Enquirer |date=17 December 2019}}</ref> with a "systemic nationwide failure" of missing and/or incorrectly installed fire cavity barriers in its timber frame properties.<ref name="TCI-18Dec2019">{{cite news |title=Persimmon faces up to its failings |url=https://www.theconstructionindex.co.uk/news/view/persimmon-faces-up-to-its-failings |access-date=18 December 2019 |work=The Construction Index |date=18 December 2019}}</ref><ref>{{cite news |last1=Neate |first1=Rupert |title=Persimmon accused of building homes with 'intolerable' fire risk |url=https://www.theguardian.com/business/2019/dec/17/persimmon-accused-of-building-houses-with-intolerable-fire-risk |work=The Guardian |date=17 December 2019 |
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In 2021, Persimmon built a block of properties the wrong way round in Colchester. The local authority required them to ensure the building was completed to the original designs submitted.<ref>{{cite web|url=https://www.gazette-news.co.uk/news/19642421.cowdray-centre-developer-alter-homes-mistake/|title=Cowdray Centre: Developer has to alter homes after mistake|work=Colchester Gazette|access-date=13 Oct 2021}}</ref> |
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===Health and safety failure=== |
===Health and safety failure=== |
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In 2001 Persimmon was fined £125,000 after an employee was crushed to death. HSE investigating inspector Tony Mitchell said: "Companies need to ensure that all safety devices are fully operational. In this case properly fitted interlocks would have prevented access to the enclosure, and saved a life".<ref>{{cite web|url=http://m.building.co.uk/3088970.article?mobilesite=enabled|title=Persimmon fined £125,000 after crush death| |
In 2001, Persimmon was fined £125,000 after an employee was crushed to death. HSE investigating inspector Tony Mitchell said: "Companies need to ensure that all safety devices are fully operational. In this case properly fitted interlocks would have prevented access to the enclosure, and saved a life".<ref>{{cite web|url=http://m.building.co.uk/3088970.article?mobilesite=enabled|title=Persimmon fined £125,000 after crush death|first=Dan |last=Stewart|work=Building|access-date=12 May 2016}}</ref> |
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===Executive pay=== |
===Executive pay=== |
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In December 2017, Persimmon's chairman, [[Nicholas Wrigley]], resigned over his role in awarding [[Jeff Fairburn]], the CEO, a £128 million bonus.<ref name="guardian">{{cite web|url=https://www.theguardian.com/business/2017/dec/15/persimmon-chair-resigns-chief-executive-obscene-bonus|title=Persimmon chair resigns over chief executive's 'obscene' £128m bonus|first=Rupert |last=Neate |date=15 December 2017|work=The Guardian |access-date=15 December 2017|via=www.theguardian.com}}</ref> The Persimmon bonus scheme was believed to be the UK's "most generous ever", scheduled to pay more than £800m to 150 senior staff from 31 December 2016.<ref name="guardian"/> |
In December 2017, Persimmon's chairman, [[Nicholas Wrigley]], resigned over his role in awarding [[Jeff Fairburn]], the CEO, a £128 million bonus.<ref name="guardian">{{cite web|url=https://www.theguardian.com/business/2017/dec/15/persimmon-chair-resigns-chief-executive-obscene-bonus|title=Persimmon chair resigns over chief executive's 'obscene' £128m bonus|first=Rupert |last=Neate |date=15 December 2017|work=The Guardian |access-date=15 December 2017|via=www.theguardian.com}}</ref> The Persimmon bonus scheme was believed to be the UK's "most generous ever", scheduled to pay more than £800m to 150 senior staff from 31 December 2016.<ref name="guardian"/> |
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In October 2018, Fairburn received widespread criticism after refusing to discuss the bonus awarded to him the previous year. When the bonus was awarded he said he would |
In October 2018, Fairburn received widespread criticism after refusing to discuss the bonus awarded to him the previous year. When the bonus was awarded he said he would forgo half his shares: the final bonus which therefore was awarded £75 million. This was the largest bonus award by a listed UK company in history.<ref>{{cite news|url=https://www.bbc.com/news/business-45915486|title=£75m bonus boss walks off over pay question|date=19 October 2018|work=BBC News|access-date=25 November 2018}}</ref> Fairburn has said he would give a "substantial proportion" of the bonus to charity; however no details of the charities were given (and no charitable involvement could be identified three years later).<ref name="Neate-14Feb2021">{{cite news |last1=Neate |first1=Robert |title=Ex-Persimmon chief fails to set up charity three years on from bonus row |url=https://www.theguardian.com/business/2021/feb/14/ex-persimmon-chief-jeff-fairburn-fails-to-set-up-charity-three-years-on-from-bonus-row |access-date=3 March 2021 |work=Guardian |date=14 February 2021}}</ref><ref>{{cite news|url=https://www.bbc.com/news/business-46154777|title=Persimmon bonus row boss retained £15m|last=Treanor|first=Jill|date=11 November 2018|work=BBC News|access-date=25 November 2018}}</ref> He left the following month in a decision that the company described as being by "mutual agreement and at the request of the company".<ref>{{cite news|url=https://www.bbc.com/news/business-46122407|title=Building boss out over £75m pay row|date=7 November 2018|work=BBC News|access-date=7 November 2018}}</ref> |
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===Late payment=== |
===Late payment=== |
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In April 2019, Persimmon Homes was suspended from the UK Government's [[Prompt payment|Prompt Payment Code]] for failing to pay suppliers on time.<ref name="Morby-29Apr2019">{{cite news |last1=Morby |first1=Aaron |title=Industry giants shamed over late payment |url=http://www.constructionenquirer.com/2019/04/29/industry-giants-shamed-over-late-payment/ |access-date=29 April 2019 |work=Construction Enquirer |date=29 April 2019}}</ref> It was reinstated around 10 months later.<ref name="Prior-12Feb2020">{{cite news |last1=Prior |first1=Grant |title=F M Conway suspended from Prompt Payment Code |url=https://www.constructionenquirer.com/2020/02/12/f-m-conway-suspended-from-prompt-payment-code/ |access-date=13 February 2020 |work=Construction Enquirer |date=12 February 2020}}</ref> |
In April 2019, Persimmon Homes was suspended from the UK Government's [[Prompt payment|Prompt Payment Code]] for failing to pay suppliers on time.<ref name="Morby-29Apr2019">{{cite news |last1=Morby |first1=Aaron |title=Industry giants shamed over late payment |url=http://www.constructionenquirer.com/2019/04/29/industry-giants-shamed-over-late-payment/ |access-date=29 April 2019 |work=Construction Enquirer |date=29 April 2019}}</ref> It was reinstated around 10 months later.<ref name="Prior-12Feb2020">{{cite news |last1=Prior |first1=Grant |title=F M Conway suspended from Prompt Payment Code |url=https://www.constructionenquirer.com/2020/02/12/f-m-conway-suspended-from-prompt-payment-code/ |access-date=13 February 2020 |work=Construction Enquirer |date=12 February 2020}}</ref> |
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===Competition=== |
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In February 2024, Persimmon was among eight UK house-builders targeted by the [[Competition and Markets Authority]] in an investigation into suspected breaches of competition law. The CMA said it had evidence that firms shared commercially sensitive information with competitors, influencing the build-out of sites and the prices of new homes.<ref name="Morby-26 February 2024">{{cite news |last1=Morby |first1=Aaron |title=Competition probe launched into 8 major house builders |url=https://www.constructionenquirer.com/2024/02/26/competition-probe-launched-into-8-major-house-builders/ |access-date=26 February 2024 |work=Construction Enquirer |date=26 February 2024}}</ref> |
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==References== |
==References== |
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[[Category:Companies based in York]] |
[[Category:Companies based in York]] |
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[[Category:1972 establishments in England]] |
[[Category:1972 establishments in England]] |
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[[Category:Companies in the FTSE 100 Index]] |
![]() | |
Company type | Public limited company |
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LSE: PSN FTSE 100 Component | |
Industry | Housebuilding |
Founded | 1972; 52 years ago (1972) |
Headquarters | York, England, UK |
Key people | Roger Devlin (Chairman)[1] Dean Finch (CEO)[2] |
Revenue | ![]() |
![]() | |
![]() | |
Number of employees | 6,000 (2023)[4] |
Subsidiaries | Charles Church Westbury Partnerships Space 4 |
Website | www |
Persimmon plc is a British housebuilding company, headquartered in York, England. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
Persimmon was founded by Duncan Davidson in 1972.The company is named after a horse which won the 1896 Derby and St. Leger for the Prince of Wales (the future Edward VII). After leaving George Wimpey, Davidson had formed Ryedale Homes in 1965, selling it to Comben Homes in 1972 for £600,000. Davidson restarted development again in the Yorkshire area; Persimmon began to expand regionally with the formation of an Anglian division in 1976 followed by operations in the Midlands and the south-west.[5] In 1984, Persimmon bought Tony Fawcett’s Sketchmead company; Fawcett had been a director of Ryedale and he became deputy managing director at Persimmon. The enlarged company was floated on the London Stock Exchange in 1985, by which time the Company was building around 1,000 houses a year.[6]
Steady regional expansion took volumes up to 2,000 by 1988 with a target of 4,000 following the housing recession. Tony Fawcett had died in 1990 and in 1993 John White was appointed as chief executive with Davidson remaining as an executive chairman. In 1995, Persimmon made the first of a series of major acquisitions. Ideal Homes, once the largest housebuilder in the country and then part of Trafalgar House was bought for £176m giving the Group a much stronger presence in the south-east. This was followed by the purchase of the Scottish housing business of John Laing plc and Tilbury Douglas Homes.[5]
In 2001, Persimmon acquired Beazer Homes UK, for £612m, taking output to over 12,000 a year.[5] The deal came about after Beazer and Bryant announced a 'merger of equals' to create a new house builder called Domus.[7] However, Taylor Woodrow stepped in with a £556 million bid for Bryant, and Persimmon bought Beazer, a company named after its founder Brian Beazer, and originally started in Bath. The acquisition of Beazer brought with it Charles Church, an upmarket housing business founded by Charles and Susanna Church in 1965.[8]
In January 2006, Persimmon acquired Westbury, another listed UK house builder, for a total consideration of £643 million.[9]
In May 2024, Persimmon was reported to be considering a bid for Legal & General's subsidiary Cala Homes, valued at around £1bn.[10]
It builds homes under the Persimmon Homes, Charles Church and Westbury Partnerships brands.[11]
Persimmon has regularly been criticised for the poor build quality of some of its homes.[12][13][14][15][16][17]
In 2008, a boy was killed by a falling mantelpiece. Persimmon, which sub-contracted company KD Childs to fit the fireplaces, had not checked the standards and had never received documents about how fireplaces were fitted. A mantelpiece had previously fallen at another Persimmon Home but was treated as a "one-off" incident.[18]
Persimmon's build quality was the subject of a Channel 4 Dispatches documentary broadcast on 15 July 2019.[19][20] In August 2019, Persimmon appointed an independent team of construction quality inspectors to ensure its homes are built to required standards.[21]
In April 2019, Persimmon launched an independent review of customer care and quality of work following criticism. Persimmon had been ranked the lowest major housebuilder in the Home Builders Federation annual customer satisfaction survey.[22] The review, published in December 2019, criticised Persimmon for not having minimum construction standards, increasing the risk of build defects,[23] with a "systemic nationwide failure" of missing and/or incorrectly installed fire cavity barriers in its timber frame properties.[24][25] In March 2021, Persimmon CEO Dean Finch announced plans to double the firm's team of independent quality inspectors to over 60 by the end of 2021.[2]
In 2021, Persimmon built a block of properties the wrong way round in Colchester. The local authority required them to ensure the building was completed to the original designs submitted.[26]
In 2019 Persimmon paid to take control of and then shut down a Facebook group, called Persimmon Homes Unhappy Customers, which detailed complaints about the company, and had almost 14,000 members.[27] The company defended deleting the group.[28]
In 2001, Persimmon was fined £125,000 after an employee was crushed to death. HSE investigating inspector Tony Mitchell said: "Companies need to ensure that all safety devices are fully operational. In this case properly fitted interlocks would have prevented access to the enclosure, and saved a life".[29]
In December 2017, Persimmon's chairman, Nicholas Wrigley, resigned over his role in awarding Jeff Fairburn, the CEO, a £128 million bonus.[30] The Persimmon bonus scheme was believed to be the UK's "most generous ever", scheduled to pay more than £800m to 150 senior staff from 31 December 2016.[30]
In October 2018, Fairburn received widespread criticism after refusing to discuss the bonus awarded to him the previous year. When the bonus was awarded he said he would forgo half his shares: the final bonus which therefore was awarded £75 million. This was the largest bonus award by a listed UK company in history.[31] Fairburn has said he would give a "substantial proportion" of the bonus to charity; however no details of the charities were given (and no charitable involvement could be identified three years later).[32][33] He left the following month in a decision that the company described as being by "mutual agreement and at the request of the company".[34]
In April 2019, Persimmon Homes was suspended from the UK Government's Prompt Payment Code for failing to pay suppliers on time.[35] It was reinstated around 10 months later.[36]
In February 2024, Persimmon was among eight UK house-builders targeted by the Competition and Markets Authority in an investigation into suspected breaches of competition law. The CMA said it had evidence that firms shared commercially sensitive information with competitors, influencing the build-out of sites and the prices of new homes.[37]
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