Housebuilder builds for further growth as it agrees multi-million pound refinance package
Doncaster-headquartered Keepmoat Homes has signed agreements for a six-year debt package to increase its liquidity and concentrate on further growth.
Today the firm published its financial results for the seven months to October 31 2018 as it opts to change its financial year end from March to October.
It reported revenues of £324m in the seven month period on 2,103 home sales with an average selling price of £154,000. When compared in a 12 month period, the firm said its unaudited 12 month period to 31 October 20918 saw revenues of £597m – a 13% increase on the £527m achieved during the year to March 31 2018.
Its pre-tax profits for the seven months hit £20m; already £7m more than the previous 12 month period to 31 March 2018 – when the firm saw losses on sites across the West Midlands and “significant trading issues” including cost over-runs that were not adequately managed. There were also £4.2m restructuring costs during the year ended March 31 2018.
The firm said that its wider Keystone JVco Group had signed agreements in the period to put in place a debt package for the next six years to supports its growth. It said: “The new facilities provide the Group with increased liquidity and lower interest rates.”
The group drew down a £150m loan facility. It also repaid its £37m revolving credit facility and drew down a new debt revolving credit facility of £27m.
Keepmoat said that the refinancing had given it £22m liquidity after re-financing costs.
New CEO Tim Beale, who took over the role earlier this year, said that as at October 31 2018, the firm had 31,148 plots. He said: “Our core market is first time buyers and first time movers, but we recognise that our partners are looking to meet a broad range of housing needs.”
Around 30% of sales are to registered provider or the “new breed” of investors in private rented homes, he said. 80% of its developments are on brownfield sites.
He said the firm planned to build 4,000 new homes over the next year. He said the firm had a presence in all top ten markets outside of London. Beale added: “The market for new affordable homes remains strong.”
