Bovis Houses has put aside £7m to compensate clients who had been bought homes that had been unfinished and had electrical and plumbing faults.
The home builder stated the latest experiences of a big variety of clients “fell beneath the excessive requirements they rightly anticipated”.
To deal with the issue Bovis is introducing a sequence of measures to enhance customer support.
It introduced a three% fall in pre-tax earnings for final yr to £154.7m.
Nevertheless, income was up 11% to £1,1bn and the variety of houses accomplished rose 1% to three,977.
Shares slid greater than eight% to 772p.
In its results statement Bovis stated its “bold progress technique” over the previous 5 years had led to “progressively growing operational challenges”.
“Our customer support requirements have been declining for a while and mixed with the delays to manufacturing in the direction of the yr finish, we have now entered 2017 with a excessive degree of customer support points,” stated interim chief government Earl Sibley.
“Our customer support proposition has failed to make sure that all of our clients obtain the anticipated excessive normal of care,” he added.
The corporate stated its manufacturing processes had not been “sufficiently strong” to deal with its progress technique and assets shortages within the business.
Additionally it stated it had not designed and resourced its clients service proposition and course of appropriately to “ship a ‘buyer first’ tradition”.
Chairman Ian Tyler stated the measures the group was introducing to deal with the customer support issues meant Bovis would full 10% to 15% fewer homes in 2017 in contrast with final yr, earlier than returning to regular ranges.
“The basics of the enterprise stay sturdy, with our market positioning mirrored in our prime quality southern biased land financial institution,” he stated.
In January David Ritchie stepped down as chief government after eight years within the position, weeks after warning over earnings.