Keepmoat in £50m Manchester deal

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Affordable house builder Keepmoat is riding high after winning a £50m contract from Manchester City Council.

The Doncaster company will build 400 new homes as part of a regeneration programme in West Gorton.

The announcement comes just days before the firm is due to announce figures for the year to March.

It is expecting to report revenues of £925m, up on the £886,484 it reported in 2013.

It is also set to return to profit after making a £21m loss last year - and a massive £472.6m loss in 2012.

The Group was formed in March 2012 through a merger of Keepmoat and Apollo. Operations are in two divisions, regeneration and homes.

A spokeswoman said: “The Group has continued to perform strongly and will be publishing its latest figures for the year to March 2014 this summer.

“Keepmoat is expecting to report revenues of £925m. This has been driven by a strong performance in Homes, which sold 1,853 properties compared to 1,508 the year before, and a strong result in Regeneration supported by the £198m Leeds PFI contract win.

“In October 2012 the Group underwent a significant recapitalisation and adjusting for the significantly reduced debt following this, Keepmoat’s profits would have been £11m. This was after charging exceptional one off costs of £8m.”

The new contract is the first time Keepmoat Homes has been appointed to build new homes for private sale in Manchester, although it has been active in the North West for 10 years.

Manchester City Council is currently half way through a 10-year regeneration plan for West Gorton, which has so far seen 171 council houses built by Keepmoat Regeneration.

Keepmoat has 14 regional offices and more than 3,000 employees.