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Keepmoat revenue up 3.5% despite 'changing market conditions'

Keepmoat has posted a 3.5 per cent rise in its group revenue for 2016, despite seeing decline in turnover in its regeneration business.

Group revenue increased to £1.13bn for the year to 31 March 2016, compared with £1.1bn the year before.

However, it said “changing market conditions” had caused a 3.6 per cent reduction in turnover in its regeneration business to £803m, from £830m the year before.

This was offset by its development division, which saw revenue increase by 28.3 per cent to £337m, from £262m the year before.

The homes division sold 2,416 in 2016 – up 13.3 per cent on the previous year.

The average selling price for a property also increased by 13 per cent to £139,000.

Keepmoat was acquired by private equity firms Sun Capital Partners and TDR Capital in September 2014, in a deal thought to be worth around £400m.

The move prompted Keepmoat to set a target of building 4,000 homes by 2019.

The housebuilder has £54.7m of cash flow available for debt servicing and acquisitions – up from £48.5m in 2015.

The group’s chief executive Dave Sheridan said: “Despite a year of changing government priorities, Keepmoat’s focus on working in long-term partnership to deliver community regeneration has continued to deliver growth.

“Our homes division has capitalised on growing demand for high-quality homes at affordable prices and the future pipeline of projects provides a platform for continued growth.”

“Our regeneration division has experienced a year of consolidation as local authorities and housing associations reassess their priorities in the face of reduced rental incomes.

“In light of this, we are utilising our core skills to deliver innovative solutions into the private rental and retirement living sectors, complementing our core offering to local authority and housing association clients.”

In June, Keepmoat formed an £800m partnership with Sigma Capital Group to deliver 5,000 rented homes in the UK by 2021.

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