Keepmoat steps up landbuying activity after drop in profit and turnover

Keepmoat has reported reduced profit and turnover but has increased its pipeline through land purchases as it targets growth following a “year of consolidation”.

The housebuilder, in its results for the year to 31 October, reported turnover of £732.8m, down 4% on the £764m reported for the previous year. Its sales fell from 3,516 to 3,124 year-on-year and its pre-tax profit dropped 15% from £54m to £45.8m. It said this was in part due to a “conservative approach to land buying in recent years.”

Ian Hoad, chief executive of Keepmoat said in a foreword to the accounts, : “Our performance in the year reflects a continued challenging market, with ongoing cost inflation and interest rates remaining higher than expected, impacting consumer confidence, affordability and therefore activity levels.”

The firm said however it has now stepped up its investment in buying land and added 60 new sites to its pipeline during the year. Its forward pipeline consists of 28,800 plots, up 18% on the 24,400 reported for the previous year.

The housebuilder said this is enough to maintain nine years of delivery at current levels. In November Keepmoat opened a new regional arm in the south west of England after buying land in that region.

Hoad said: “As we increase our investment in our land pipeline, we will maintain our focus on ensuring that we secure high-quality partnership land in the right locations and at the right price to achieve our growth objectives”

Hoad described the regulatory environment as “challenging” but said green shoots are beginning to appear due to the government’s planning reforms. It said however that “significant financial, regulatory and compliance burdens continue to be introduced and could potentially impact delivery”, citing the Building Safety Levy and Future Homes Standard. 

Keepmoat placed 36th in Building’s Top 150 Contractors & Housebuilders list last year.