Annual Reports Keepmoat Homes Annual Report 2018 | Page 17

Strategic Report
Risk and description
Keepmoat.com
Possible impact
Mitigation
Movement
Health and
Safety T  he safety and wellbeing of
Keepmoat’s employees, sub-
contractors and members
of the public is of critical
importance to the Group. I  nadequate health and safety
procedures could lead to
injury or death, operational
failure and possible significant
compensation payments and
fines. T  he Group has implemented a
comprehensive safety strategy,
which includes bringing safety to the
forefront of our culture, measuring
safety performance, strong risk
management procedures and audits
of compliance with these procedures. No change.
Financial
Security T  he cash flow requirements of
the Group’s contracts can be
very different and availability of
short-term liquidity is critical to
the Group’s ability to grow and
deliver successful projects on
behalf of clients.  A lack of short-term liquidity
could impact upon the Group’s
ability to invest in land & build
WIP, constraining growth,
or impacting on the ability
to pay sub-contractor and
material suppliers resulting in
a failure to deliver projects to
an acceptable standard and
on time.  The Group maintains strong financial
discipline. Cash generation and facility
headroom is monitored by robust
budgeting, forecasting and cash
management disciplines. No change.
T  he Group relies on surety
companies to provide
performance bonds on certain
contracts.
Availability
of Resources
Land and
Planning
P  roject delivery is dependent
upon sub-contractors and
material suppliers.
I  nability to source sufficient or
suitable land that meets the
requirements of a Keepmoat
scheme and subsequent delays
or issues in the planning
process.
 If the Group were unable to
provide appropriate levels of
performance bond coverage,
it may be unable to compete
effectively for new work.
 The Group has established strong
relationships with providers of surety
products and has established suitable
bonding facilities in order to support
the Group’s requirements for the
foreseeable future.
 Poor or late availability of
labour and materials could
significantly impact upon the
Group’s ability to operate
efficiently and deliver projects
on time with high levels
of partner and customer
satisfaction.  The Group maintains strategic supply
agreements with major materials
suppliers and project scheduling
permits material orders to be raised
with appropriate lead times for
delivery without impacting upon
overall project timescales.
 Insufficient land would affect
our volume growth targets
and inability to do so at the
required margin would impact
future returns.  Our land and partnerships team are in
constant dialogue with our partners
over the availability and suitability of
land.
No change.
 A broad sub-contractor base delivers
services across the Group, with no
dependence upon any single sub-
contractor in any region.
Newly identified.
 Thorough due diligence is conducted
on all proposed land purchases and is
kept under review to ensure capital is
used strategically.
 We work closely and collaboratively
with local authorities on planning
requirements and monitor compliance
with requirements regularly.
People
I  nability 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 have re-visited our organisational
design and people strategy and are in
the process of implementing revised
structures and strategies.
 We review retention rates regularly
and assess root cause for departures
through structured exit interviews.
 We offer competitive salary and
benefits packages which are regularly
benchmarked regionally.
 We have graduate and apprentice
training programmes in place.
 We offer our staff varied internal and
external training opportunities.
  Newly identified.
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