Keepmoat bosses have stood by a recent financial performance which saw its profits diminished but cash and forward orders stable following a tough trading period exacerbated by a sluggish approval process.
Revenue for the year ended 31 October 2024 fell 11.1 per cent to £724.7 million from £815.1 million the year prior, yielding a pre-tax profit of £53 million, down from £81.5 million in FY2023.
Keepmoat also saw its operating profit decrease during the period, to £63.5 million, down from £91.4 million in the previous financial year.
During FY2024 the business sold 3,289 new homes, compared to 3,751 in 2023 – a 12.3 per cent decrease which bosses said was ‘in line with expectations’.
“Against the backdrop of economic uncertainty, continued inflationary pressure and high interest rates, we performed well against our peer group, despite a sluggish market particularly in the early part of the year as a result of reduced buyer confidence,” said Keepmoat.
“The increasingly challenging regulatory environment added even greater difficulty to the planning process, and although we continue to win land bids and add to our pipeline, bringing these new sites forward through the approval process is slow, resulting in fewer sales outlets in the year.”
The Doncaster-headquartered house builder ended the year with a cash position of £135.3 million (FY2023: £149.5 million) and a strong forward land pipeline of more than 24,400 projected completions, increasing from 23,100 at the start of the period.
Keepmoat reported profit for the year of £43.6 million, down from £68 million the year before.
Keepmoat recently announced the promotion of Ian Hoad to chief executive officer, succeeding Tim Beale, who stepped down after eight years with the business.
In March, Keepmoat announced the appointment of Robert Holbrook as its new divisional finance director across the North West, Yorkshire West and MCI regions.
Holbrook has 20 years’ industry experience and previously held the positions of divisional managing director at Barratt, Eastern Counties and David Wilson Homes, North West and was MD at Jones Homes, North West, before he joined Keepmoat
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