Thu. Jan 27th, 2022

The CEO of Countryside Properties has resigned after the home builder failed to capitalize on the UK’s booming real estate market.

Shares in the group fell nearly a fifth in early trading on Thursday after the group said profits fell to less than half of their level a year ago in the last quarter of last year, even as rival builders reaped the rewards of strong demand and picked up record prices. .

Rural said Thursday that boss Iain McPherson will leave the FTSE 250 developer with immediate effect.

In July, McPherson introduced a new strategy for Rural to focus on its “partnerships” division, working with housing associations and operators in the private rental sector, and returning from the private sales market.

But the group’s adjusted operating profit in its partnerships division fell from £ 24 million in the first three months of last year to £ 11.3 million this year as revenues and the number of new homes built fell sharply.

John Martin, Rural’s chairman, will act as interim CEO while the company seeks a replacement for McPherson.

Meanwhile, Persimmon, one of the largest homebuilders in the UK, said on Thursday it had sold more homes at a higher price in 2021 than it had managed in 2020, bringing revenue for the year to £ 3.61 billion from £ 3 , 33 billion.

The company said it was selling homes at a 20 percent faster rate than it did before the pandemic. It also announced the appointment of Jason Windsor as chief financial officer, who will join insurer Aviva in July this year.

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