Annual Reports Keepmoat Homes Annual Report 2018 | Page 20

Directors’ Report
Keepmoat.com
Directors’ Report
The directors present their annual report and the consolidated audited
financial statements of the Group for the year ended 31 March 2018.
Principal activities Financial risk management
Keepmoat Limited is the principal holding company for the
operational businesses of the Keystone JVco Limited Group.
The subsidiary companies of Keepmoat Limited, since the
disposal of the regeneration division, have been engaged
in the construction of residential dwellings. Keepmoat
Limited’s subsidiaries are listed in note 26 to the financial
statements In the course of its ordinary activities, the Group is exposed
to financial risks which include liquidity, credit and interest
rate risks. These risks are monitored and managed through
robust policies and procedures at a Keystone JVco Limited
Group level. Further details are included in Note 25 of the
financial statements.
Business review and
future developments
The consolidated profit after tax for the financial year was
£256.6m (2017: £49.3m), of which £240.7m was related
to the sale of the Regeneration business (FY17: £32.5m).
During the year ended 31 March 2018 the Company
paid a dividend of £341.1m following the disposal of the
Regeneration Group of Companies. No final dividend is
proposed (FY17: £nil). No dividends were declared or paid
for the year ended 31 March 2017.
A review of the results, performance and future
developments of the Keepmoat Limited Group of companies
is presented in the Chief Executive Officer’s Report, the
Chief Operating Officer’s Report and Strategic Report on
pages 7 to 19 which form a part of this report.
Going concern
The directors have considered the adequacy of the Group’s
financial resources through a review of the financial
projections for the business, taking into account the facilities
available to the Group, which include the extension of
the wider Keystone JVco Group’s revolving credit facility
to 31 August 2019. The directors have also considered
the covenants attaching to the facilities and the likely
level of headroom available to the Group. After careful
consideration the directors are satisfied that the Group and
Company have adequate resources to continue in operation
for the foreseeable future being at least twelve months from
the date of signing the financial statements. For this reason
the directors continue to apply the going concern basis in
preparing the financial statements.
Liquidity risk relates to the Group generating sufficient cash
flow to meet its operational requirements while avoiding
debt covenant breaches or excessive debt levels in the wider
Keystone JVco Limited Group. The wider Keystone JVco
Limited Group’s borrowings are a combination of long term
loans and long term committed revolving working capital
credit facilities.
Credit risk is in relation to trade receivables from clients.
Given that the majority of trade receivables are with public
and regulated organisations, the exposure to credit risk is
extremely limited.
Interest rate risk relates to the impact of interest rate
increases on the wider Keystone JVco Limited Group’s
floating rate borrowings. At present the revolving credit
and overdraft facilities are all on a floating rate. The wider
Group’s long term borrowings are all at fixed rates of
interest.
Directors
The directors who held office during the year and up to the
date of signing the financial statements are given below:
D Sheridan
J Thomson
P Hindley
(resigned 30 April 2017)
(resigned 5 February 2018)
W Taylor
(appointed 12 December 2016,
resigned 30 April 2017)
M Priest (appointed 19 March 2018)
T Beale (appointed 19 March 2018)
Effective ownership
The ultimate parent of the Company is Keystone JVco
Limited. TDR Capital LLP has effective control of 85% of
the issued share capital of Keystone JVco Limited whilst Sun
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