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Keepmoat Annual Report 2020

  • Text
  • Lease
  • Keepmoat
  • Strategic
  • Annual
  • Income
  • Assets
  • Limited
  • Homes
  • Statements
  • October
Keepmoat has released its Group financial results for the year ending 31 October 2020.

CHIEF EXECUTIVE

CHIEF EXECUTIVE OFFICER’S STRATEGIC REPORT Positive market positioning The fundamental underpinnings for the UK Housing Market have remained strong including Government support, low interest rates and increased desire and aspiration to own a home. This has remained true despite the unprecedented challenges imposed by the ongoing COVID-19 pandemic, the continued uncertainty over the impact of the future relationship and trade agreements with the EU and the resulting uncertainty around employment and negative impacts on the wider economy. Keepmoat, with an average sales price of £165,000 and limited exposure to London and the South East, performed well to the end of March 2020 with sales across all regions in line with our expectations. However, the onset of the COVID-19 pandemic and the period of shutdown that resulted had an impact during the remainder of 2020. Accordingly, the Board has continued to consider the potential effect on our business and has updated risk assessments. Key risks have been identified, such as the effect of the COVID-19 pandemic on the UK economy, supply and cost of materials, the impact on availability of labour and potential changes to Government policy and regulation. the EU and we are working closely with those suppliers to monitor the potential impact as the UK adapts to the new trade arrangements with the EU. We believe that the Group’s multi-tenure partnership approach and expertise in the first-time buyer market provides some resilience should any adverse market effects arise because of the COVID-19 pandemic. We will continue to closely monitor market conditions into the future considering wider political and economic developments. The business has appropriate mitigation plans in place to address any adverse impacts should they arise. Most of our building supplies are manufactured in the UK and are not at risk from future trade arrangements with the EU. An element of the products procured through our network of UK based suppliers will be imported from FY20 average selling price: £165,000 18 KEEPMOAT.COM

STRATEGIC REPORT Building supplies are not at risk from future trade arrangements with the EU. Most of our building supplies are UK manufactured ANNUAL REPORT & FINANCIAL STATEMENTS 2020 19