Archive for December, 2009

ROOM IN THE HOUSE FOR TWO

In an exclusive interview, Rupert Bates speaks to the men at the helm of The Berkeley Group, the 2009 What House? Awards Housebuilder of the Year.

It could have smacked of well-rehearsed banter. “Do you want my chair?” joked Tony Pidgley to Rob Perrins. “You’re the chairman,” replied Perrins. “But you are the boss. Shall I make the coffee?” asked Pidgley.
It was clearly spontaneous. The two men at the top of the Berkeley Group obviously get on and for the next 90 minutes, in between some on and off the record chat about the business, the state of the volume builders, planning issues, sustainability and urban regeneration, they were not afraid to take the mick out of each other. It was the most refreshing morning I have spent in a housebuilder’s office for a long time.
Pidgley did indeed make the coffee – a bit stronger next time Tony and where were the custard creams? He returned with a tray of mugs delicately held in cupped hand. If it all goes wrong – and Berkeley continues to go very right – AWP can always get a waiting job at La Capanna, the Italian restaurant in Cobham, so popular in the days of expense accounts.
But Pidgley sat in the big chair in his big office. He’s not relinquishing that just yet, for the Berkeley sauce still reads ‘Me and Perrins.’
In September Pidgley moved to chairman and Perrins, groomed for the succession for several years, became group managing director of The Berkeley Group.
They were in buoyant mood, not just because of the balance sheet, but in the wake of winning the industry’s most coveted prize – What House? Awards Housebuilder of the Year, as well as seven other What House? Awards throughout the group.
“We got another one yesterday,” said Pidgley, pointing to the Britain’s Most Admired Companies award from Management Today, finishing 21st overall, but a clear winner in the housebuilding sector.
It certainly is a groaning trophy cabinet and Perrins agrees he does feel like he is trying to follow Sir Alex Ferguson at Manchester United. Has Perrins, a chartered accountant out of Ernst & Young, in his 15 years at Berkeley ever had the hair dryer treatment from Pidgley?
“We’ve had our moments,” said Perrins.
We could have talked about Berkeley’s comfortable net cash position, no write-downs, the fact they continue to set the sustainability standards and the exciting urban regeneration schemes in places like Kidbrooke, south-east London. But it is far more instructive to look at the personalities and the dynamic at the top.
If you want me to say that when Pidgley eventually hangs up his hard hat - sometime in 2047 is my guess, just after he gets a telegram from his mate the Prince of Wales - the empire will crumble, you will be disappointed.
Going liquid at the right time; withdrawing from the land market when prices got out of control (and some big boys are already bidding silly money again), seeing chronic oversupply in cities, we like to call it Berkeley’s uncanny ability to read the market. Pidgley calls it common sense.
In over 20 years covering the new homes industry, I have never seen Pidgley so relaxed. Perrins is clearly thriving too. Most accountants in the current market are like Eeyore in a thistle famine. Perrins is Tigger. I hesitate to call Pidgley Pooh Bear, but you get the picture.
At a recent board meeting, Perrins mentioned how well the company had been doing since September 9th. It was a while before Pidgley realised he was referring to the date Perrins officially started as group MD.
“Yes it is a tough market but as a company we feel as inspired today as we have ever been and we are producing some great kit,” said Pidgley.
The chairman believes one of Perrins’ strengths is not just that he can do the maths, but he knows how to make best use of the numbers.
“Unless there is something they are not telling me, without exception all the MDs reporting into Rob like, accept and respect him,” said Pidgley.
Okay Rob, come on, what’s it like succeeding, let’s face it, an industry legend?
“Tony has made his name through track record and performance – 33 years of successful trading. All the best companies have leaders you can name. They can say things with substance and back it up with results.”
Perrins has Berkeley in his blood and his appointment is evolutionary not revolutionary. Berkeley has always looked to promote from within and Karl ‘king of sustainability’ Whiteman and Nick Simpkin, now group FD, have joined the board.
“Tony Carey, Sean Ellis, Andrew Saunders-Davies, Paul Vallone – we have great people throughout the Group,” said Pidgley. He mentions a new division in the northern Home Counties, or Three Valleys, - proof that, despite, like many, having to make significant redundancies, Berkeley is not treading water.
As for the What House? Awards, Perrins said no matter how successful a company is on paper, external endorsements are worth their weight in gold.
“What I loved about the Awards was the small companies winning. Fantastic. And we need more of them. They are the future, but they need help,” said Pidgley.
“The future is not big volume players. It is a large number of smaller builders, but for them to succeed the barriers to entry, especially planning, have to come down,” said Perrins.
Perrins knew exactly what he was taking on when, one Christmas Eve, Pidgley insisted they drove to Sussex where a customer had a complaint that ‘would ruin his Christmas.’ They knocked on the purchaser’s door and, just short of crawling under the sink to fix the plumbing, sorted it out.
Of course as many who have worked at Berkeley will testify, it is not all sweetness and light and Pidgley knows Perrins is tough enough to make the tough decisions – something his mentor has never been shy of.
“Blue murder is quite fun from time to time,” laughed Pidgley. Perrins chuckled. I think.
With 1pm approaching, Pidgley reached for his packed lunch – I kid you not, he had a little cooler bag – and offered Perrins a pear and a banana.
With bold designs, a taste for challenges however many consultations and regulations are put in their way, autonomous management teams, intuitive thinkers and plenty of passion for the building game, Berkeley will continue to enjoy the fruits.
As for the Pidgley-Perrins ticket, they have different strengths but the same core values.
“Can I take Rupert for some lunch?” asked Pidgley.
“No we’ve got our results on Friday and lots to get through,” said Perrins.
Spoken like a true accountant, aware of just how much damage buying me lunch could do to the bottom line. But Perrins is no killjoy and the three of us agreed dinner in the New Year. I look forward to them spoofing for the bill.

Tweet This Post