Record year for home builder

Leading partnership home builder, Keepmoat Homes has reported record sales for the year ended 31 October 2019.

The Doncaster-headquartered developer, which has published its annual report saw revenues rise to £649.8m as it delivered over 4,000 new homes across England and Scotland with an average selling price of £161,000.

The firm which moved its year end in 2018 from March to October to support its continued growth by “optimising the timing from both a sales and build perspective”, also saw its EBIT rise by a third to £61.1m.

Tim Beale

The success follows what the firm’s CEO, Tim Beale describes as a “truly transformational period”, which saw him promoted to the role in February following two years as chief operating officer and deputy CEO. Speaking in the annual report

Beale highlighted that the focus of the last 12 months had been on establishing  “a strong management team and creating a high-performance culture”. He commented: “The management structure we have created which has enabled us to deliver an outstanding result in the financial year to 31 October 2019. We have increased our revenues by 8.8% to £649.8m and delivered 4,035 high quality new homes for our customers.”

The home builder, which has a partnership business model working with local authorities, registered providers and Homes England, is delivering over 13,000 homes in partnership with the latter as a member of consecutive Delivery Partner Panels for over a decade.

Speaking of the current 2020 financial year, the chief executive added that the business welcomes the cross-party consensus on delivering more new homes and the government’s extensions of the Help to Buy scheme until 2023. However at present the builder has closed all its sites as a result of Covid-19.

He said: “As a responsible business, we have taken the decision to close all our sites and show homes. The Group continued to trade well up until late March with high visitor levels and reservation rates and a strong order book for the delivery of high-quality affordable new homes for our customers and partners. Keepmoat is well positioned to recommence activities as soon as it is safe to get back to work at our developments.”

The homebuilder, which is owned by Sun Capital Partners and TDR Capital, is clearly gearing up for further growth, having appointed Stephen Stone as non-executive chairman at the end of 2019. Stone was previously chief executive and chairman at house builder Crest Nicholson, where he took the firm to IPO.

Stone commented: “I am particularly excited at the prospect of working with chief executive officer Tim Beale again, having previously worked together for around 20 years. The changes he has successfully implemented since his appointment as CEO have seen Keepmoat strengthen its position as a leading UK homebuilder with a balanced business model, putting customers at the heart of the journey, while implementing and maintaining the highest standards of build quality and operational efficiency. It is these factors which will underpin our exciting growth strategy which we will continue to execute over the coming years.

“The Board is confident that our unique business model will continue to drive significant growth in quality homes delivered, revenues and profits in the current financial year and beyond.”

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