Keepmoat maintains discipline to deliver record results

Keepmoat maintains discipline to deliver record results

Tim Beale, CEO at Keepmoat Group

Partnership homebuilder Keepmoat has hailed its effective use of working capital, disciplined operational performance, and continued strong demand for underpinning revenue growth during its latest financial year.

In record-breaking results, the revenue at the group increased by 10.9% for the year ending 31 October 2022 to £778.1 million (12 months to October 21: £701.6m), while EBITDA increased 39.6% to £114.3m.

Keepmoat’s average selling price increased by 14.0% to £204,000.

Tim Beale, chief executive officer, said: “The 2022 financial year saw Keepmoat deliver a record breaking financial performance, which is a remarkable achievement and one that I am personally extremely proud of. During the year we saw an increase in our revenues of 10.9% to £778.1m and in our adjusted EBITDA of 39.6% to £114.3m.

“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. We remain committed to a multi-tenure strategy, working with our partners, including Homes England, local authorities, registered providers and the Private Rented Sector (PRS).

“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. This approach has enabled us to maintain delivery, where others are looking to slow down production.

“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. Furthermore, our strong land pipeline, equal to circa six years of delivery, retains flexibility and opportunity for us to deliver on our strategic objectives.”

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