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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.

PRINCIPAL RISKS AND

PRINCIPAL RISKS AND UNCERTAINTIES Risk and description Possible impact Mitigation Movement Government policy Changes to Government policy in areas such as housing, planning and building regulations may result in increased costs and/or delays. Failure to obtain planning on a timely basis, or meet building regulation requirements, could result in delays and expose the Group to penalties and reputational damage We regularly assess the policy landscape and develop strategies to meet changing requirements (e.g. Future Homes Standard). We regularly consult with government agencies and local authorities, specialist external advisors and subject matter experts. The Group has in-house expertise in legal, regulatory, health and safety and technical functions who advise and support on related policy matters. No change. Legal and regulatory compliance Inability to meet the key requirements of applicable legislation and regulatory requirements. Lack of appropriate procedures, training and compliance could result in financial penalties and other regulatory consequences Group wide policies, procedures and training are in place covering key compliance and regulatory areas, supported by whistleblowing procedures. The group has in-house expertise relating to legal and regulatory compliance, who monitor compliance with key legislation and regulatory requirements as well as providing guidance, training and support to the wider business. New risk. We have separated this from the policy risk as it is worthy of greater visibility, given its increasing significance. People Inability to attract, develop and retain appropriate people across the business. Insufficient capacity and capability will affect our ability to meet our key strategic targets. We offer competitive salary and benefits packages which are benchmarked regionally. We have a comprehensive training and development programme covering all roles from apprenticeships to senior leadership roles. this has over run from last year Regular performance and development reviews are in place. We review retention rates regularly and assess the root causes of departures through structured exit interviews. Regular “Peoples Voice” surveys are conducted to assess employee satisfaction and engagement. Succession planning is in place for key roles within the Group. No change. Whilst this year has been difficult for our people and we have needed them to adapt and show resilience, our additional investment in the people strategy in recent years has meant that we have been able to attract, retain and develop our people across the business. 58 KEEPMOAT.COM

STRATEGIC REPORT Risk and description Possible impact Mitigation Movement IT and cyber Failure or data loss from any of the business core IT systems, in particular those relating to customer information, surveying and valuation. Poor performance of our systems would impact on our operational efficiency, profitability and our control environment. Data loss could result in financial loss and reputational damage. Regular vulnerability scans and security penetration testing of all key business systems, to identify any areas of weakness, vulnerability and technical improvement Technical and procedural controls to help us effectively identify, protect, detect and respond to cyberrelated incidents. This has been independently ratified and certified to the NCSC Cyber Essentials Plus standard. Continued investment in IT systems. Group wide IT systems in operation are controlled by a central IT function. No change. Whilst COVID-19 has tested our IT resilience, we have responded to the challenge and managed the associated risk. Customer service Inability to provide the customer journey, high-quality home and timely defects resolution that result in high levels of customer satisfaction. Damage to our reputation and strategic objective of being a 5* housebuilder. Regular monitoring of key performance indicators including; 8 weeks and 9-month survey results, open defects, defects outside of SLA, defects per plot. A revised Customer Hallmark process has been embedded with additional inspections and time to rectify issues. Rigorous management of build programmes and customer service activity to ensure high build standard and effective defects resolution. New risk. Customer delight has always been at the heart of our strategy, however having reached our highest standard yet we wish to maintain this level of performance. . ANNUAL REPORT & FINANCIAL STATEMENTS 2020 59