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Tue May 21 2024

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Keepmoat revenues up, profits down

26 Mar Partnership house-builders Keepmoat has posted financial results showing double-digit revenue growth but a similar fall in profits for its overseas owners.

Keepmoat chief executive Tim Beale
Keepmoat chief executive Tim Beale

Keepmoat Ltd increased its revenue by 11% to £864.6m for the year to 2023 (2022: £778.1m). Pre-tax profit was down 10% at £83.2m (2022: £92.2m).

Given market conditions, the board considered these numbers ‘a fantastic achievement’.

Keepmoat completed 4,074 new homes during the year at an average selling price of £211,000.

Chief executive Tim Beale said: “I am delighted to report that the 2023 financial year saw Keepmoat deliver another strong financial performance, which is a fantastic achievement against the backdrop of an extremely challenging market. Keepmoat has once again proven itself to be a resilient and agile business and unlike many of its peer group, has continued to grow, maintaining volumes, continuing to invest in land and delivering a record number of new homes where others have had to slow production.

“Our unique partnership business model, underpinned by our multi-tenure offering and the attractiveness of our product, has once again proved its value, demonstrating that it allows us to operate successfully and thrive in all market conditions.

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“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. The average selling price of our homes increased by 3.4% to £211,000 reflecting the continued demand for our high quality, affordable new homes.

“We remain committed to a multi-tenure strategy, working with our partners, including Homes England, local authorities, registered providers and the private rented sector. In the last financial year, the attractiveness of our product, coupled with our strong relationships with our partners, enabled us to secure additional delivery and maintain volumes. 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’s ultimate parent company is Maison Grafton Sarl, an investment company incorporated in Luxembourg, while its ultimate controlling party is funds managed by Aermont Capital, also registered in Luxembourg. Aermont paid £700m to take over the business from TDR Capital and Sun Capital in 2021.

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