Housebuilder Keepmoat Regeneration Ltd has returned to profit following a challenging year in which pressures within the construction sector led it to cut the workforce by 22%.
The company, which has a regional base in Hebburn and a division which covers the North East, North West, West Midlands and Scotland, last year saw turnover slip to £186.5m for the year ended March 2013, a drop of 24.8% from £247.9m last year, after the firm enduring the slump which affected the whole of the building industry.
However, a complete refinancing and recapitalisation programme has delivered pre-tax profits of £6.8m in the time period, a huge change in fortunes from the £3.9m pre-tax losses reported in 2012 for the firm, which is predominantly involved in the public sector, with projects including refurbishment of social housing, new build social housing for rent and constructing accommodation for the elderly.
Until the start of this month the business was known as Frank Haslam Milan but parent company Keepmoat has now brought all of its subsidiaries involved in housing regeneration under the one name of Keepmoat Regeneration.
The company said it incurred costs of £261,000 to cover redundancies and associated restructuring costs over the year, after a reorganisation led to the loss of 229 employees in the 1,032-strong workforce base across the whole of the UK.
A report accompanying the annual accounts in Companies House said: “This improvement in operating profits reflects the measures and controls put in place to address the challenges faced by the business following the replacement of the Government’s Decent Homes initiative by lower margin, tendered contracts.”
Looking ahead the firm said the restructuring process has now secured the firm’s financial future and that it now aims to explore new markets, having already scored a number of contract wins in the region.
Recent projects include Keepmoat Homes involvement in Central Park Darlington, which will see the development of new homes, office and retail space, green and formal open spaces .
Keepmoat chief executive officer Dave Sheridan, said: “The future of Keepmoat is brighter than it has ever been and I would like to thank everyone who has played a part in this achievement. I am proud to be part of a business with such strong solid foundations and a clear vision for the future.
“The financial future of Keepmoat was secured through a very successful recapitalisation and refinancing of the business that supports its growth over the coming few years.
“Keepmoat has a strong presence in the North East and we are working on a number of key projects across the region including Newcastle, Sunderland, Tyneside and Darlington.
“Our success in the North East is based upon the regeneration of neighbourhoods and investment in local communities and we are excited about working in partnership with our clients across the region to improve even more neighbourhoods.
“In future, we will also be looking to expand into the education sector in the North East.”