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Home » Keepmoat Sounds Optimistic Note As It Publishes Mixed Results

Keepmoat Sounds Optimistic Note As It Publishes Mixed Results

Housebuilder Keepmoat says it is cautiously optimistic about its key markets despite a drop in pre-tax profits.

The Doncaster-based developer said it had delivered a strong performance in a challenging market and that its multi-tenure partnership model had allowed it to respond to high inflation and mortgage rates as they weighed on buyer confidence. The firm pointed to a record number of completions in the year to the end of October at 4,074 homes – up 7.9% on the prior year.

However pre-tax profits fell from £92.2m in the same period of 2022 to £83.2m. That was despite an 11.1% increase in revenue to £864.6m as selling price increases at the start of the year slowed and build cost inflation continued, though at a slower rate through the second half of the year.

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Keepmoat, which employs 1,112 people, specialises in brownfield regeneration sites, which last year made up about 77% of its numbers. Its average selling price increased 3.4% to £211,000.

In a review of the year, chief executive Tim Beale said: “Our success in the current market conditions is a clear validation that our business strategy is the right one and looking ahead I am cautiously, based on the consistent demand we have seen since the start of 2023 from our private customers and despite the ongoing cost of living pressures and the higher mortgage rates that have followed increases in the Bank of England Base Rate.

“The long-term fundamentals for the UK housing sector are strong. There remains a shortage of high quality, affordable new homes across the country. We are convinced that these fundamentals, in the context of Keepmoat’s robust multi-tenure partnership model and the strength of our experienced leadership and management teams, mean that we are well positioned to manage the business effectively through any market scenario.

“I firmly believe that our multi-tenure partnership approach and our expertise in the first time buyer market, together with our favourable market positioning, focused towards smaller, more affordable product, will continue to provide resilience, should adverse market conditions persist for a prolonged period.”

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