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Chief Financial OfficerÕs Review REVENUE, OPERATING PROFIT AND EBITDA Keepmoat Limited revenue for the year to 31 March 2012 was £676.1m (2011: £677.1m). This is slightly lower than the previous year, and reflects the challenging prevailing market conditions. Adjusted operating profit fell to £32.6m (2011: £67.5m). The results for Keepmoat Limited include the results for Apollo from 23 March 2012.

Revenue Adjusted operating profit* Interest paid Adjusted operating profit after senior debt interest Adjusted EBITDA**

* Adjusted operating profit is stated before

relation to vacated properties and charges in relation to asset impairment following the closure of our in-house hire division Keepmoat Site Services. Keepmoat also incurred exceptional costs in dismantling its photovoltaic installation business which was no longer considered viable following the Government’s decision, at short notice, to bring forward the commencement date for the reductions in the feed-in tariffs from March 2012 to December 2011. During the previous year, Keepmoat ceased operations in Evolve, its joint venture off-site modular unit manufacturing division. While most of the costs associated with this closure were incurred in the year end 31 March 2011, £1.3m of legacy costs were incurred in 2012.

676.1 32.6 32.6 34.5

677.1 67.5 (0.1) 67.4 69.9

** Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and

and impairment

exceptional items

2012 £m

2011 £m

Exceptional trading losses Redundancy and restructuring Onerous leases and lease terminations Dilapidations on rented properties Asset, property and land impairment Abortive photovoltaic installation costs Evolve Built for Life Ltd

17.0 6.0 0.6 0.4 6.2 0.4 1.3

2.0 3.2

Total

31.9

5.2

Net cash inflow from operating activities Net interest paid Net cash inflow on acquisitions Other (including additions to freehold land and buildings) Increase in borrowings Tax and dividends Decrease in cash

GOODWILL AMORTISATION AND IMPAIRMENT The result for the year includes an annual goodwill charge of £0.4m and impairment of £29.8m from assessing the fair value of the acquisition of Conquest Bidco Limited.

12

2011 £m

exceptional costs and goodwill amortisation

EXCEPTIONAL COSTS The exceptional trading losses relate to a number of contracts that were tendered at low margin and became loss making during delivery in one of our regions. Following the merger, the Group also incurred exceptional costs relating to redundancies, costs in

2012 £m

2012 £m

2011 £m

24.8 11.3 (1.3) 8.8 (64.8) (21.2)

45.3 (0.1) (2.5) (46.8) (4.1)

CASH GENERATION AND EBITDA The key measures of our financial performance are EBITDA (stated before exceptional items) and cash generation. The operating cash flow for the year was £24.8m (2011: £45.3m) whilst EBITDA was £34.5m (2011: £69.9m).

Keepmoat Annual Report and Financial Statements 2012

Keepmoat plc Annual report and accounts 2012  
Keepmoat plc Annual report and accounts 2012  
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