Keepmoat Homes has reported 26% revenue growth in its latest accounts, with underlying profits up by more than 30%.
Following the sale of its Regeneration division to Engie on 30th April 2017, Keepmoat Homes is now the principal business of Keepmoat Ltd.
In the year to 31st March 2017, Keepmoat Homes generated revenue of £423.2m (2016: ££336.7m) and made an adjusted profit before interst and tax (EBIT) of £34.8m (2016: £26.5m).
Excluding the £32.5m profit from discontinued operations, profit before tax was largely unchanged at £25.4m (2016: £25.0m).
Keepmoat sold 2,924 homes during the year, up 21% on the previous year (2,416) and the average selling price increased from £139,000 to £145,000.
The number of plots in the company’s land pipeline increased by 19% to 28,544.
Chief executive Peter Hindley said: “The business performed in line with expectations in the light of continued strong demand for new housing and despite significant shifts in government policy.
“Good progress has been made in developing growth opportunities. During the year, we continued to build our presence in new geographies and develop propositions for new sectors which will fuel further growth in the future.
“In FY17 we continued our regional expansion programme with the new Scotland region already firmly established, and the splitting of our two largest regions, Yorkshire and Midlands, completed. In addition, the group strengthened its capacity in the northwest with the acquisition of MCI Developments Limited in January 2017, which is an established business building high quality homes for registered providers.”
He revealed that Keepmoat was now eyeing up new business opportunities in the private rented sector, having already set up a modular housing joint venture with Elliott.
“Enabled by our strong reputation for partnership working, we are developing opportunities in two new sectors. The private rented sector is a growing market and financial institutions are keen to invest in this long term revenue stream. We are developing relationships with a number of investing institutions who are keen work in partnership with developers such as Keepmoat to build significant portfolios of private rented homes. We have also successfully entered into partnership with Elliott to launch a modular construction product under the brand name of ilke Homes.”
Executive chairman James Thomson added: “The sale of the Keepmoat Regeneration business for £330m earlier this year has significantly strengthened our balance sheet and we are well placed to support and deliver growth. We are targeting to deliver over 4,000 much needed high quality, affordable homes for the UK during the next financial year.”
Keepmoat is now majority owned by TDR Capital (73.53%). Minor stakes are held by Sun Capital Partners (12.98%) and the company’s management (13.5%).