Tuesday, August 16, 2016

News: Keepmoat targets new sectors as regen income drops

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Keepmoat, the Doncaster-based affordable housing and community regeneration specialist, has seen group revenues increase despite a small decline in Regeneration division revenue.

Acquired at the end of 2014 by private equity firm Sun Capital and investment funds managed by TDR Capital LLP, the firm operates a regeneration team at offices in Manvers, Rotherham that was previously known as Bramall Construction.

In its results for the year ended March 31 2016, the group said that it had "performed in line with expectations in the face of significant shifts in government policy and continued strong demand for new housing."

The company has reacted and made good progress in developing growth opportunities in new markets and sectors.

Group revenue increased by 3.5% to £1.134 billion from £1.095 billion in 2015, reflecting strong growth in the Homes division offset by a small decline in Regeneration division revenue.

Adjusted EBITDA (earnings before tax) was a reported £66.7m, up 4.5% from the £63.8m reported in the previous year.

The regeneration team has its headquarters on the Callflex business park in Manvers (also home to Keepmoat Homes Yorkshire) and is focused in areas such as traditional refurbishment of housing; new build housing and education.

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Turnover for the Regeneration division was £803m, a 3.6% reduction on the previous year (£830m) largely reflecting changing market conditions. During the period, the restructuring of Keepmoat Property Services reactive maintenance business was completed.

The division had a £1.054 billion order book at March 2016 with recent contracts including plans to transform the former Barr's soft drink factory site in Wigan into a £35.5m new housing development and the beginning of a major £150m housing and regeneration scheme in which Keepmoat is delivering 1,457 new homes in the Newington and St. Andrew's area of West Hull.

As well as targeting new geographical areas for its Housing division, the group is now targeting new sectors including the private rented sector and homes and communities designed for retired people. These additional sectors are expected to create opportunity for future growth for the Regeneration division.

Dave Sheridan, chief executive at Keepmoat, 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. We are excited by these new opportunities and their potential to deliver further growth."

Keepmoat website

Images: Keepmoat


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