Completions rise but profits drop at house builder

Doncaster-headquartered house builder, Keepmoat Homes, has hailed a strong financial result despite economic uncertainty as it publishes its figures for the year ending 31 October 2023.

It built 4,074 homes in the year, an increase of 7.9% on 3,776 the prior year. Revenues increased 11.1% to £864.6m but pre-tax profit was down to £83.2m from £92.2m.

Keepmoat also reported adjusted EBITDA of £101.4m – an 11.3% decrease on 2022’s £114.3m.

Tim Beale, chief executive officer, said the company’s performance had been a “fantastic achievement” against the backdrop of an extremely challenging market.

He added: “We delivered 4,074 much needed new homes across the UK, more than ever before, 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.

“We remain committed to a multi-tenure strategy, working with our partners, including Homes England, local authorities, registered providers and the private rented sector.

“We have an excellent forward sales position and our strong land pipeline, equivalent to circa six years of delivery, retains flexibility and opportunity for us to deliver on our strategic objectives.

“Looking ahead I am cautiously optimistic, an improved open market sale rate in the early part of 2024 demonstrates that some confidence and stability has returned to the market, underpinned by reduced mortgage rates for some products and some easing to the cost of living and inflationary environment.”

Keepmoat notes the long-term fundamentals of the UK housing sector remain strong, with a continued shortage of good quality new homes across the country.

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