Housing association reports rising turnover and doubling of surplus
A2 Dominion is forecasting a slight increase in its completions for 2023/24 despite its build rate dropping 37% in the first half of the year
The 39,000-home housing association, in a trading update today, said it is still expecting 757 homes to be handed over by 31 March. A figure of 757 would exceed its total of 745 completions in 2022/23.
The forecast comes despite completions in the first half of the year dropping 37% from 390 to 245 units.
A2 Dominion also reported a doubling in its half-year surplus from £10.7m to £20.1m. This was boosted by £6.1m drop in interest costs, and a £14.9m increase in rental and service charge income. It said its surplus will drop in the second half of the year due to higher budgeted spend.
A2 Dominion’s total turnover for the half year increased 6.3%, from £192.5m to £204.6m.
The update follows an eventful for months for the G15 landlord.
The Regulator of Social Housing in September launched an investigation into A2 Dominion in September relating to a possible breach of its governance and viability standard. RSH has yet to reveal details of its concerns.
In September A2 Dominion revealed it had made a a £12.8m deficit in 2022/23 after recognising £32.4m of losses following write-downs and costs due to aborted developments. Its sales income was less than expected as it sold 346 units generating income of £100.4m, against a target of selling 416 to generate £121.8m
And then earlier this month it announced changes to its executive team structure to improve resident services.