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A year of changing attitudes

The Group started the year positioned well to respond to the strong demand for our affordable homes following the first lockdown. The better than expected results reflect how well the business has bounced back and delivered for our customers and partners. COVID-19 has had a significant impact on the nation’s attitude to home ownership as more people now recognise the importance of having their own private space to live, work, exercise and relax, further supporting the long-term social trends which continue to underpin demand for our affordable homes. 

“I firmly believe that our unprecedented success over the last 12 months is testament to the strength of our extremely talented, competent management team and our highly engaged and motivated workforce, with the right people in the right roles to drive the business forward.” 

- Tim Beale, Chief Executive Officer

2021: at a glance

Following the pandemic, we have continued to develop more of the high-quality, multi-tenure, new homes the UK needs – at prices people can afford, in places where they want to live. It’s a socially responsible approach that delivers a sustainable future by investing in the environment, championing the local economy, employing local people and prioritising social value.

Evolved for growth

Each of the regional businesses has its own management board and is empowered to deliver our overarching operational excellence strategy, applying the Group’s policies and systems to local markets and circumstances. This agile structure and approach mean we are well positioned for future growth.

Nine regional businesses, organised into two divisions:

  • North: Scotland, North East, North West and West Yorkshire
  • South: East Yorkshire, West Midlands, East Midlands, South Midlands and South West

A business built on strong foundations

Against a background of significant uncertainty at the start of the financial year and the ongoing Coronavirus Pandemic, the business had an excellent performance. The strong return to pre-pandemic levels of performance demonstrates the resilience of the Keepmoat Homes partnership business model. 

Review our current Annual Report and financial statements as well as our historic reporting accounts.

Annual Report 2021

Read our latest Annual Report, which details Keepmoat’s performance and achievements during 2021; a year of changing attitudes.

Download our previous annual reports

Keepmoat Homes considers its annual reports to be compliant with the Walker Guidelines. In relation to disclosures on human rights, please refer to Keepmoat Homes’ Modern Slavery Act compliance statement.

Tax strategy

We have structured our systems, processes and controls to ensure that tax liabilities are calculated accurately, and that tax is paid on time

Minimising risk. Maximising compliance

We have structured our systems, processes and controls to ensure that tax liabilities are calculated accurately, and that tax is paid on time. We additionally employ designated internal resource to monitor the effectiveness of our systems, processes and controls, to ensure they remain appropriate as the group evolves.

22nd October 2020

This document sets out the Group’s approach to conducting its tax affairs and dealing with tax risks for the year ending 31 October 2020. This document complies with Schedule 19 of Finance Act 2016 in relation to groups publishing their tax strategy.

Approach to risk management and tax governance arrangements

Keepmoat has structured its systems, processes and controls to ensure that tax liabilities are calculated accurately, and that tax is paid on time. Keepmoat employs designated internal resource to monitor the effectiveness of its systems, processes and controls to ensure that they remain appropriate as the group evolves. Keepmoat recognises that monitoring systems is particularly important in times of business growth, change or expansion.

Tax compliance is a key priority for the Group’s Board of Directors. The Board commits to considering the appropriateness of the Group’s tax processes and controls at least annually (and more frequently should the need arise). The Board has approved this Tax Strategy. In particular, Keepmoat has measures in place to manage the following:

Corporate change

Whilst the Keepmoat business is long established, its corporate structure is dynamic. Keepmoat recognises that corporate activity, such as share sales, mergers, acquisitions, and refinancing activities require adaptability and integration. Keepmoat involves external tax specialist resource to support its corporate finance activity. In addition, Keepmoat designates its own internal resource to ensure that change as a result of corporate finance activity is fully embedded within its business operations.

Areas of judgement

Unfamiliar areas of tax law, or areas of the law that require interpretation or judgement present uncertainty. Where appropriate, Keepmoat uses external specialist resource to assist with its compliance decisions. Keepmoat also actively seeks review and clearance from HMRC where possible.

Inherent risk

The nature of Keepmoat’s site-based activity across developments is fairly consistent. However, projects may vary in terms of structure, scale, value and term. Our operations require us to employ a mobile workforce and subcontractor base. Tax specialist review is undertaken where new ventures are unusual or innovative, involving the use of external experts in areas of uncertainty.

In the event that Keepmoat identifies an error in its tax affairs, we commit to communicating promptly to HMRC with a view to resolution.

Attitude towards tax planning

When considering entering into any new business agreements, Keepmoat takes into account the impact the arrangements could have on its brand and reputation, its relationships with customers and supply chain, its commitment to corporate social responsibility and the legal and regulatory frameworks. Keepmoat avoids undertaking arrangements that are purely or mainly motivated by a tax saving.

Keepmoat commits to seeking external tax advice in the following circumstances:

  • Areas of law that are new, changing or complex
  • Where tax is impacted by the expansion into new areas of business
  • Corporate finance related transactions

Level of risk that the Group is prepared to accept

Keepmoat takes a responsible, conservative attitude to tax risk. Transactions with a tax impact are only undertaken with a commercial goal in mind; they are not undertaken purely for a tax incentive. The Group’s shareholders are supportive of Keepmoat’s focus on corporate social responsibility.

Approach of the Group to its dealings with HMRC

Keepmoat commits to maintaining a good working relationship with HMRC. Keepmoat uses its Customer Compliance Manager as its primary contact. Keepmoat commits to communicating with HMRC in a courteous and timely manner. Keepmoat wishes to be open, honest and transparent in its dealings with HMRC. Prevention of unnecessary dispute is preferred, and Keepmoat will work with HMRC on a real-time basis as far as possible.

Investors

Quarterly results calls

2022 Calendar:

  • Full Year 2021 and Q1 2022 Results Call - Tuesday 29th March at 11.00 am
  • Q2 2022 Results Call - Tuesday 28th June at 11.00 am  
  • Q3 2022 Results Call - Tuesday 27th September at 11.00 am

To register for the Quarterly Result calls, please complete the registration form below. Dial in details will be sent to the email address provided by you.

The results for each quarter will be published at 7am on the day of the investor call.

Please note, if at any time you have opted to be included on our distribution list, all dial in details and publications will be automatically issued to you.

For more information on the personal data we collect and what we might do with it, see our privacy notice.

Register:

To register for the Quarterly Result calls, please complete the registration form below. Dial in details will be sent to the email address provided by you.

Sustainability

Sustainability is built into our very vision: Building Communities and Transforming Lives.

Sustainability

At Keepmoat Homes we think and act beyond bricks and mortar – sustainability is built into our very vision: Building Communities and Transforming Lives.

As well as creating better places for people to live, we know our success depends on playing our part in building the sustainable communities and enhanced environments our customers and partners value.

Our priorities

With Building Communities and Transforming Lives at the forefront, we are focused on the issues of most importance to the people around us, where our business can make the greatest contribution.

Building Communities, Transforming Lives - Alongside creating better places for people to live, we work with our partners to create and improve places and in turn improve economic, environmental and social outcomes. In 2020: £18.3m social value delivered

KeepWell - Supporting the health and wellbeing of our staff, our sub-contractors and our communities. In 2020: 14,704 COVID-19 site inductions

Climate Action - Taking action to reduce absolute carbon emissions from our operations, our supply chain and the homes we build, and to adapt our operations and homes to our changing climate. In 2020: 93% electricity on renewable tariffs (now 100%)

Net Positive - Protecting and enhancing our environment across the lifecycle of our operations, homes and our developments. In 2020: -11% environmental incidents

Educating for construction - Providing education and development opportunities for our staff and communities to address the construction sector skills shortage. In 2020: 45 construction apprentices

Safe and sustainable operations - Assuring the safety and sustainability of our sites, operations and supply chains, and increasing the proportion of people from local communities in our workforce. In 2020: 6% reduction in lost time injuries

Sustainable Homes - To deliver increasingly sustainable homes (affordable, efficient, low carbon and adaptable). In 2020: 3,000 tonnes carbon avoided over life of homes constructed

Efficient operations & Zero Net Waste - Achieve zero net waste construction through waste minimisation and buying recycled. Continually improve our management systems (ISO 14001, ISO 9001 & OSHAS 18001). In 2020: 33% reduction in total waste

How we prioritise

We determine our priority sustainability issues, not just through internal discussion, but through reaching out to charities and community groups, our suppliers, local government and development partners, and our investors.

A major engagement activity was held in 2019 to assess the most important or ‘most material’ issues to focus on, involving 135 internal and external stakeholders, consisting of quantitative and qualitative research. Regular stakeholder engagement is an ongoing process, and we will be working with partners to review our targets, and gaining more customer views on sustainability in our 2021 financial year.

While the value we create through our developments begins at the local level, these activities can contribute to regional, national and global goals. We have aligned our focus and objectives to eight of the United Nations’ Sustainable Development Goals where we can make the greatest contribution.

Governance and management

The Board and Executive have overall oversight of the sustainability strategy (see Sustainability Strategy 2020-2022), providing directional steer and approving the release of the right resources for sustainability to be effectively managed. The Board and Executive approve sustainability policy, strategy and commitments.

The HSS Committee, headed by the Health, Safety and Sustainability Director plays a co-ordinating role, developing the sustainability strategy. Under this sits the Sustainability Team responsible for coordination of the strategy. It provides tools and initiatives for functions and monitors and reports on performance.

Ultimately, delivery of the sustainability strategy happens though functional and regional teams through all operational activities. A team of Social and Economic Impact Managers delivers sustainability initiatives at the community level.

Reflecting the wide-reaching implications of sustainability for our business, and the recommendations of the Taskforce for Climate-related Financial Disclosures the business is currently reviewing it’s Environmental, Social and Economic Governance, with outcomes to be reported in due course.

Climate risks and opportunities

The physical impacts of climate change, and global efforts to mitigate it have implications for all businesses and society as a whole. Our Sustainability Policy and Environmental Policy contains a clear commitment for our business to mitigate and adapt to climate change.

In our 2021 Financial Year, we are reviewing our risks and opportunities in line with the recommendations of the Taskforce for Climate Related Financial Disclosures (TCFD) and will be publishing our first CDP Climate Survey in 2022, providing further detail on initial risks and opportunities identified.

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