Turnover soared by a third at affordable dwellings specialist Keepmoat Homes to £209.8m, following a welcome boost from the government Help to Buy scheme.
The community regeneration firm, which operates across the North of England and Midlands with a Gateshead office covering the North East, posted its annual accounts for the year ended March 2014 with strong growth in turnover, EBITDA and plot sales.
Adjusted EBITDA topped £20.9m, 44.1% up on the previous period’s £14.5m, while the number of plot sales rose by 23% to 1,853.
The firm said it is focussing on areas of potential growth, leading to expansion into Scotland and Southern England, with new offices in Luton and Glasgow.
Part of the Keepmoat Group, the business delivered 1,853 new homes in the period – beating its target by 15 – and positive impact from the Help to Buy initiative led to 936 reservations being made.
Looking ahead, the company said it has ambitious future plans, having secured 16,235 land plots to drive its growth.
It also expects to benefit from the government’s £100bn Investing In Britain’s Future Infrastructure Plan from this year, a scheme which will see £3.3bn invested into the sector to create 165,000 new affordable homes between now and 2018.
Director James Thomson said in the firm’s strategic report: “The advent of the Help to Buy scheme has introduced a mortgage product that has been absent from the housing market for over five years.
“This has provided a stimulus to the housing market that has seen it expand by over 20% in the 12 months since it was introduced.”
Graham Scanlon, business development director for Keepmoat, said "The North East team are delighted with their market position and growth over the past year as Keepmoat Homes are moving from 406 sales in 2013/14 to in excess of 450 on 2014/15 exceeding targets with growth plans and aspirations. 60% of sales this year have been to first time buyers supported by the government's Help to Buy scheme.
"Keepmoat Regeneration has sustained a turnover through partnership working to £70m and through a number of recent contract wins, have developed a strong order book.
"Growth plans are in place as the market gains confidence and as well as to continue to deliver for existing partner's wider market opportunities in public buildings and education are being pursued with a future target annual turnover over the next 5 years being £100m."