Annual Reports Keepmoat Homes Annual Report 2017

Directors and advisers Keepmoat.com 4 Strategic Report Keepmoat.com 5 Executive Chairman’s Statement Directors and advisers A new focus on new homes Directors Independent auditors J Thomson P Hindley L Charters (appointed 30 April 2017) PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors St Paul’s Place 121 Norfolk Street Sheffield S1 2LE Keepmoat Limited (“Keepmoat”, “Company”, “Group”) is a leading partnership homebuilder, operating across mainland UK, providing high quality, private affordable homes primarily to first time buyers and first time movers. Registered office Bankers The Waterfront Lakeside Boulevard Doncaster South Yorkshire DN4 5PL Lloyds Bank plc City Office PO Box 72 Bailey Drive Gillingham Business Park Kent ME8 0LS Company secretary We have a strong track record in working with our partners, principally local authorities and registered providers, to design, build and regenerate places where people want to live, based on our extensive capabilities across all aspects of the development process. Sale of Regeneration business The financial year ended with a refocusing of our business. On 1 March 2017 the Group entered into a sale agreement to dispose of 100% of our Keepmoat Regeneration division to ENGIE, a leading energy and services group in the UK, for gross consideration, subject to customary closing adjustments, of £330m. The disposal completed on 30 April 2017 following anti-trust clearance. Following this disposal, on 12 May 2017 the Group made a cash return to shareholders of £145m in aggregate, followed by the redemption of £163m of our parent group’s bond debt on 15 June 2017. A robust performance Following the sale of the Regeneration business, the Group’s principal business is Keepmoat Homes, which performed strongly in the financial year ended 31 March 2017, continuing the significant growth in revenue achieved in prior years. Keepmoat Homes’ revenue increased by 25.7% to £423.2m (FY16: £336.6m) reflecting an increase in plots sold of 21.0% to 2,924 (FY16: 2,416) and an increase in average selling price per plot to £145k (FY16: £139k). This and future growth is being supported by our regional expansion programme, with the new Scotland region already firmly established, delivering just short of 100 plots in the year, and with the splitting of our two largest regions, Yorkshire and Midlands, progressing well. In addition, the Group strengthened its capacity in the North West on 10 January 2017 with the acquisition of MCI Developments Limited, which has an established business building high quality homes for registered providers. Cutlers View, Sheffield Growing our business through strong partnership working The sale of part of the business leaves its fundamental character unchanged. Keepmoat Homes remains a partnership homebuilder focused on brownfield opportunities in areas benefiting from housing-led urban regeneration. In those areas, we deliver high quality, stylish and best value homes. These homes are for sale on the open market, predominantly to first time buyers and first time movers, and are also built for registered providers of housing. Our experience spans all aspects of the development process, including community consultation and master- planning, feasibility studies, research surveys, liaison with planners and statutory authorities, and bespoke engineering and design solutions. As specialists in bringing brownfield sites back into use, we build over 95% of our new homes on brownfield, partnership land. We work in close partnership with local authorities across the UK to improve communities and deliver large-scale housing-led regeneration. Our key projects include those as part of Sheffield Housing Company and at Newington and St Andrews in Hull. These schemes typify the locations where we work, being inner-city, large- scale, brownfield areas with concentrated populations in prominent UK cities. high quality, stylish and best value homes . These We deliver homes are for sale on the open market, predominantly to first time buyers and first time movers, and are also built for registered providers of housing.

Annual Reports Keepmoat Homes Annual Report 2017 | Page 4