Annual Reports Keepmoat Homes Annual Report 2018 | Page 18

Strategic Report
Keepmoat.com
18
Financial Review
Financial Review
Overview
Continuing to build on performance in previous years, Keepmoat Homes’ revenue from
continuing operations for the year grew significantly to £555.6m (FY17: £423.2m), an increase
of 31.3%. The number of home sales increased 27.1% to 3,717 (FY17: 2,924), with average selling
price increasing to £149k (FY17: £145k).
This and future growth continues to be supported by our regional expansion programme,
including into relatively new regions such as Scotland, and by our multi-tenure strategy via
registered providers, the private rented sector, and open market sales.
In order to provide clearer visibility of the underlying performance of the Group, the Board elect to measure profits
on an adjusted basis alongside other key KPIs as follows:
Continuing operations
Revenue
Contribution (1)
Adjusted EBITDA
(2)
Adjusted EBIT (3)
Adjusted operating profit
(4)
Change Year
ended
31 March
2018 Year
ended
31 March
2017
% £m £m
31.3% 555.6 423.2
23.4% 88.1 71.4
19.9% 43.1 36.0
21.7% 41.7 34.2
15.2% 40.1 34.8
1.0 0.7
3,717 2,924
Operating cash flows from continuing activities
Plots sold
27.1%
Contribution is gross profit adjusted for exceptional items and acquisition fair value adjustments (a reconciliation of gross profit to
contribution is provided in note 3).
1 
Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and impairment of investments and is calculated before
exceptional items and acquisition fair value adjustments (a reconciliation of operating profit to Adjusted EBITDA is provided in note 3).
2 
Adjusted EBIT is earnings before interest, tax, amortisation and impairment of investments and is calculated before exceptional items and
acquisition fair value adjustments (a reconciliation of operating profit to Adjusted EBIT is provided in note 3).
3 
Adjusted operating profit is stated before exceptional items, amortisation of acquisition intangible assets and the acquisition fair value
adjustment to new homes work in progress (a reconciliation of operating profit to adjusted operating profit is shown on the face of the
consolidated income statement).
4 
Contribution increased by 23.4% to £88.1m (FY17:
£71.4m) given increased volume, with adjusted EBIT
increasing by 21.7% to £41.7m (FY17: £34.2m).
Operating profit from continuing operations for the year was
£18.2m (FY17: £28.1m); a decrease of 35.4%, but reflecting
exceptional items, see page 19 and note 4 for further details.
Operating cash flows from continuing activities
were £0.3m higher in the year, delivering
an inflow of £1.0m (FY17: £0.7m).
home
sales increased
27.1% to 3,717
(FY17: 2,924),
The number of
These results are underpinned by a set of well-embedded
principles in Keepmoat’s corporate ethos including prudent
management, risk assessment, customer satisfaction,
quality of products and services, innovation and continuous
improvement.
with average selling
price increasing to
£149k (FY17: £145k).