In reporting its latest trading update, Persimmon recorded a decrease in net cash for 2024 to £260m. This represented a £160m drop from the 2023 figures, with £60m due to remediation costs. These figures bring Persimmon’s total remediation spend to date to c.£120m, as the company looks to progress its remediation work. It reported work in progress or having been completed in over 70% of known developments.
The report also noted that the company were managing “sector-wide challenges”, which included current and forthcoming regulatory changes, including those around the Building Safety Levy. Commenting on the figures, group chief executive, Dean Finch, said: “This investment, coupled with the government’s ambitious planning reforms which demand more of the high-quality, affordable homes which are Persimmon’s core strength, supports our growth ambitions in the medium term.”
Elsewhere in the sector, the annual accounts for Crest Nicholson have been delayed as auditors examine its fire remediation provision.
As reported by Construction Enquirer, this provision is expected to rise from £145m six months ago, to around £450m, with the housebuilder explaining that the change was due to nearly all of its buildings now having been assessed.
“The company has made significant progress and is nearing completion of its assessment of all buildings within the scope of the self-remediation terms and is therefore now in a position to account for the expected costs for all 291 buildings.”
A statement from Crest Nicholson explained that it had “applied its experience to date and the most plausible risk scenario to ensure it accounts for its probable liabilities and maintains a prudent and responsible approach to fire safety remediation provisions”.
“With expected fire remediation costs fully provided for, the company believes this will provide greater clarity for the business going forward and allow the new management team to re-invigorate the business on firmer foundations”.
In line with the government’s remediation acceleration plan, Crest’s remediation programme is due to be completed during 2029.