Buoyant demand for housing lifts Keepmoat revenue growth

HOUSEBUILDER KEEPMOAT has seen revenue grow off the back of strong demand for new housing.

Revenue increased by 25.7 per cent from £336.7m the previous year to £423.2m in the year ended March 31, 2017, despite “significant shifts” in government policy.

Keepmoat said it sold 2,924 homes during the period, an increase of 21 per cent on the previous year.

The Doncaster-based housebuilder also saw the average selling price increase from £139,000 to £145,000.

Peter Hindley, chief executive of Keepmoat Homes, 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.”

The number of plots within its land pipeline increased by 19 per cent to 28,544, the company said.

Mr Hindley added: “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 to 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.”

Following the sale of its Regeneration division to ENGIE in April, the group’s principal business is Keepmoat Homes.

James Thomson, executive chairman of Keepmoat Homes, said: “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.”