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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 FINANCIAL

CHIEF FINANCIAL OFFICER’S REVIEW Chief Financial Officer’s review The Group incurred and capitalised total issue costs of £1.25m as a result of increasing the two existing debt facilities. On 15 June 2020, the Group also received £7.5m of additional funding from its shareholders through the issues of shares in the Company. The issue was split in proportion to the existing ownership of the Group’s shareholders. Financing costs External financing costs in the year were £25.5m (year ended 31 October 2019: £21.6m) leading to a cash outflow of £12.9m (year ended 31 October 2019: £12.3m). The charge includes non-cash amounts of £8.3m (year ended 31 October 2019: £6.8m) in respect of the unwind of discount on deferred land payments. Land bank pipeline At 31 October 2020, the number of plots within our land pipeline, including sites where we have been appointed as preferred developer was over 24,000 representing over 6 years of delivery at current volumes, providing significant forward visibility for the Group. Impact of new accounting standards IFRS 16 “Leases” was effective for the year ended 31 October 2020. The impact of adopting this standard was the recognition of right of use assets of £8.0m and lease liabilities of £8.6m on transition in respect of offices, company vehicles, site plant equipment and show homes. The impact on adjusted EBIT for the year ended 31 October 2020 was £0.6m. Taxation The current year tax credit of £5.1m (year ended 31 October 2019: £6.9m charge) is made up of a current tax credit of £0.4m and a deferred tax credit of £4.7m. Working capital The amount of working capital required to service the Group’s operations is closely monitored and controlled and forms a key part of the management information reviewed on a daily, weekly and monthly basis. Current assets mainly comprise trade receivables, work in progress and land held for the development of private housing and affordable housing through partnership schemes. As the Group’s trade receivables relate mainly to public sector and Housing Association clients, there is no significant history of bad or doubtful debts. Mark Priest Chief Financial Officer Performance bond facilities The Group, like most construction businesses, may in some cases rely on the use of performance bonds issued by surety companies to our clients. The directors are pleased to report that the Group has adequate performance bonding lines in place with surety companies to meet the Group’s growth plans. 62 KEEPMOAT.COM

STRATEGIC REPORT ANNUAL REPORT & FINANCIAL STATEMENTS 2020 63