Keepmoat Homes Annual Report 2021

CHIEF EXECUTIVE

CHIEF EXECUTIVE OFFICER’S STRATEGIC REPORT “I firmly believe that our unprecedented success over the last 12 months is testament to the strength of our extremely talented, competent management team and our highly engaged and motivated workforce, with the right people in the right roles to drive the business forward.” 6 KEEPMOAT.COM

STRATEGIC REPORT Chief Executive’s Review The Group has performed strongly in the year to the end of October 2021 with the delivery of 3,915 new homes generating revenues of £701.6m, increasing adjusted EBITDA by 34.6% to £84.0m from pre pandemic levels (2019: £62.4m). Against a background of significant uncertainty at the start of the financial year and the ongoing Coronavirus Pandemic this excellent performance is one I am extremely proud of. This strong return to pre-pandemic levels of performance demonstrates the resilience of the Keepmoat Homes¹ partnership business model. The Group started the year positioned well to respond to the strong demand for our affordable homes following the first lockdown. Our better than expected results reflect how well the business has bounced back and delivered for our customers and partners. COVID-19 has had a significant impact on the nation’s attitude to home ownership as more people now recognise the importance of having their own private space to live, work, exercise and relax, further supporting the long-term social trends which continue to underpin demand for our affordable homes. Our multi-tenure partnership business model has once again proved its resilience and we are in an excellent position as we move forwards to deliver our future growth plans. We have an excellent forward land pipeline, with over 24,000 secured planned future completions, equivalent to six year’s delivery, which will allow us to continue to build more of the highquality new homes that the UK needs at prices people can afford. The average selling price of our new homes in FY21 was £179,000 (FY20: £165,000) and 69% of the homes we built were on brownfield land. I am delighted to say that during the last financial year we were able to repay the funds we accessed from the Coronavirus job retention scheme, which enabled us to protect the jobs of our c1,100 people during the height of the pandemic. with the capacity and infrastructure for continued growth to deliver well in excess of 4,000 per annum from our nine regions. I am confident that such great support will be continued by our new shareholder, Aermont, in the delivery of our strategy and that our new capital structure provides a robust platform for our continued growth. I firmly believe that our unprecedented success over the last 12 months is testament to the strength of our extremely talented, competent management team and our highly engaged and motivated workforce, with the right people in the right roles to drive the business forward. I am looking forward to the next 12 months and to continuing to work alongside them on the next stage of our journey. Board activity On 26 October 2021 Stephen Stone stepped down from the Board after two years of service. I would like to thank Stephen for his contribution to Keepmoat Homes during his tenure, and in particular his dedicated Chairmanship of the board. 2021 was an historic year for Keepmoat Homes. In addition to record profits being delivered, following a high level of corporate activity the Group was acquired by funds managed by Aermont Capital LLP (“Aermont”). For the past 7 years the Group has been very well supported by its previous shareholders, TDR Capital and Sun Capital. During this period Keepmoat Homes has grown significantly from delivery of just under 2,000 homes from four regions to a Group ¹ Keepmoat Homes refers to the trading activities of the Keystone Midco Limited Group ANNUAL REPORT & FINANCIAL STATEMENTS 2021 7