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Davidson announced his retirement at the company鈥檚 annual meeting last Thursday in York. He will become life president when he steps down as chairman at the next meeting in April 2006.

He founded the company in 1972 and floated it on the stock market in 1985. Since then, its market capitalisation has grown to more than 拢2bn and is on the verge of entering the prestigious FTSE-100.

It is presently ranked at 105.

At the meeting, Davidson also announced the company鈥檚 succession plans. John White, Persimmon鈥檚 group chief executive for the past 12 years, will take over as chairman. Commenting on White鈥檚 promotion, Davidson said: 鈥淭he board considers that the company and its shareholders would benefit from his continuing involvement in the group.鈥�

Since White took over as chief executive, pre-tax profit has risen from 拢10m to 拢470m and earnings per share have grown from 7.3p to 113.9p.

Davidson said: 鈥淲hite鈥檚 appointment is being made after consultation with a number of our larger shareholders, who are supportive.鈥�

White will be replaced by Mike Farley, who is chief executive of Persimmon鈥檚 southern division and who has been with the company for 21 years.

The City has been impressed with White鈥檚 stewardship of the company. Despite the fact the housing market has slowed in the past year, in March Persimmon increased its full-year dividend 50% to 27.5p when it announced its 2004 annual results. It had already secured 拢1bn of forward orders for 2005.

Updating shareholders at the meeting, Davidson was upbeat about prospects for 2005 and said that the company was in line to meet expectations.