Profits and revenues soar at house builder despite mortgage market turmoil
Doncaster-based homebuilder, Keepmoat, has reported another record breaking financial performance as it publishes its financial results for the year ending 31 October 2022.
The business says its growing revenues were underpinned by effective use of working capital, disciplined operational performance, and continued strong demand for its new homes.
Revenue rose by 10.9% to £778.1m (2021: £701.6m), while EBITDA increased to £114.3m, an increase of 39.6%. The average selling price was up 14% to £204,000. Keepmoat also recorded pre-tax profits of £92.2m (2021: £29.7m).
Tim Beale, chief executive officer, said: “We delivered 3,776 much needed new homes across the UK, with a focus on our core first time buyer customer base, building high quality new homes at prices people can afford, in places they want to live.
“As we move through our new financial year, our capital light, multi-tenure, partnership business model is once again proving its flexibility and resilience.
“Despite the turmoil in the mortgage market at the end of 2022 following the mini-budget, we have been able to secure additional delivery to Registered Providers and to the Private Rented Sector, who operate long-term business models with associated long term funding, meaning their investment in new stock is unaffected by the short term dynamics that can impact private buyer demand.
“Looking ahead I am optimistic, following a strengthening of reservations in the early part of 2023, that some confidence and stability has returned to the market. We have an excellent forward sales position, better even than this time last year.”