In its final results for the year ended 31 December 2016, the company is making a one-off £7 million customer care provision due to "weaknesses in our production process and a high level of customer service issues".
In addition, the company will slow its rate of production and targeting completion volumes to be circa 10% to 15% below 2016 levels.
-- Advertisement --
While over 3,000 plots have been added to the Group's landbank and year end net cash increasing to £38.6m, the company said 2017 will be about "re-setting the business" and delivering on its "operational priorities", reinforcing a "customer first" culture across the business.
Ian Tyler, Chairman, said: "Despite the difficulties of 2016, the Board remains confident in the Group's abilities to deliver improved returns to shareholders.
"The process of transformation is already underway under Earl Sibley's interim leadership and I am confident the plans in place will address the operational weaknesses we have seen in our business, and focus us once again on delivering high quality product and service to our customers."
Overall, the Group reported a 3% decline in profit before tax (£154.7m to £160.1m), while revenue rose 11% to £1,054.8m (£2015; £946.5m).
(LM/CD)
