Keepmoat " Bouncing Back Strongly" After COVID 19 Disruption
Doncaster homebuilder Keepmoat Homes delivered “a resilient financial and operational performance against a backdrop of significant disruption caused by the Covid-19 pandemic.”
The company reported revenues of £406m in its financial results for the year ended 31 October 2020, (12 months to 31 October 2019: £649.8m).
The housebuilder’s adjusted earnings before interest and tax were £11.4m (2019: £61.1m), with a total of 2,460 homes sold (2019: 4,035).
Tim Beale, chief executive officer, said: “Despite the year’s challenges, our mixed-tenure partnership model has continued to set us apart, proving incredibly resilient and ensured we are bouncing back strongly and started the spring selling season well.
Full year revenue of £406.0m (12 months to 31 October 2019: £649.8m)
Adjusted earnings before interest and tax of £11.4m (12 months to 31 October 2019: £61.1m)
2,460 homes sold (12 months to 31 October 2019: 4,035)
Affordable average selling price of £165,000, a slight increase of 2.5% over the previous year but significantly below national average of £289,000
Actions taken to strengthen its balance sheet including WIP management, securing new financing facilities with our banks and a pre-emptive equity injection from its shareholders
“We started the year with a strong first quarter, demonstrating good momentum following a record performance in the financial year ended 31 October 2019.
“With the arrival of the pandemic and safety our top priority, we closed all our sites in April 2020 and introduced rigorous Covid-safe working protocols and inspection regimes before undertaking a phased re-
opening in May.
“We accelerated the digital transformation of our business, investing in our digital infrastructure to improve the customer sales journey, with online sales and appointment booking tools, as well as systems to strengthen build management.
“As the UK’s leading brownfield builder with over 70% of our current developments on brownfield land, we are firmly committed to sustainability and are proud of our strong social value credentials.
“Housing is a major Government priority, and many customers are re-appraising where they want to live with demand for flexible space for living, working, exercising, and relaxing.”
As to its outlook, Keepmoat says it started the spring selling season well, with a record forward order book and renewed customer momentum.
The housing market remains robust, underpinned by low interest rates, growing consumer demand and good mortgage availability.
It benefited from excellent forward visibility with a high-quality pipeline of more than 24,000 plots (including sites where we have been appointed as preferred developer), equivalent to six years’ supply, which leaves us well positioned to deliver strong volume growth and enhanced returns in the medium term.
The impact of Covid-19, coupled with Brexit, may continue to cause some near term uncertainty, but we are confident that our highly affordable homes and our unique mixed-tenure partnership model allied with Government policy leaves Keepmoat well positioned to rebound and make strong progress in 2021 and over the medium term.