Housebuilder Persimmon sets aside £75m for cladding removal
February 10, 2021, 12:26 pm

Housebuilder Persimmon sets aside £75m for cladding removal

Persimmon believes its buildings account for less than 1% of all high-rise developments.

Developer identifies 26 multistorey buildings that may be affected

The housebuilder Persimmon has set aside £75m to pay for any work needed to remove cladding on its high-rise buildings after a review of its past developments.

The developer is mostly known for constructing family homes but has identified 26 multistorey buildings it constructed that have cladding that may need to be removed.

The company’s financial commitment came before an expected government announcement about providing billions of pounds of extra support for the owners of flats in buildings covered with cladding.

The Grenfell Tower disaster in 2017 exposed the dangerous defects in thousands of apartment blocks across the UK, many of which were covered in flammable cladding.

The subsequent cladding crisis sparked disagreements over who is responsible for paying for its removal, with some homeowners facing huge bills for the work.

Conservative MPs have said building firms and cladding manufacturers should be pursued for costs, yet there have been calls for government support as leaseholders have been left with flats that are unsellable, unmortgageable and uninsurable.

Persimmon believes its buildings account for less than 1% of all UK high-rise developments.

However, it confirmed that some of its multistorey buildings used cladding materials that may now be considered unsafe and may need to be removed, even though they met the fire safety rules and regulations that were in place at the time.

Roger Devlin, the chairman of Persimmon, said the concerns around cladding were affecting thousands of homeowners in high-rise buildings.

“At Persimmon, we believe we have a clear duty to act to address this issue,” Devlin said. “Where we still own the building we will act. Where we no longer own them we will work with the owners to make sure they meet their legal responsibilities and duty. If the owner does not step up, then we will act to remove uncertainty and anxiety for residents and make the buildings safe.

“This is a decision which we believe is not only right for residents but also the right thing for us to do as one of the leading housebuilders in the UK.”

The group has identified nine high-rise buildings it developed that are more than 18 metres tall, where cladding may need to be removed, in line with government guidance.

Persimmon no longer owns these buildings but said it would provide technical support to ensure the building was made safe, and will also help to complete the work if the building owner does not accept its responsibilities.

In addition, the company has identified 17 buildings below 18 metres that may be fitted with cladding and which require detailed investigation. Persimmon said it would lead the work on the buildings which it still owns and would provide support for the owners in other cases.

Persimmon said it was writing to building owners and management companies about its review of its developments and to agree the next steps, and that it intended to act swiftly.

source: Joanna Partridge

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.