West midlands association reports increased turnover but smaller margin as it ramps up send on tackling damp and mould
Bromford expects to build around 1,200 homes in 2023/24, it said in an unaudited trading update today.
The 46,000-home West midlands-based association said it completed 472 homes in the six months to 30 September, slightly down on the 500 figure reported for the same period last year.
Bromford said it expects to complete more than 700 homes in the second half of the financial year, taking its development to around 1,200 homes against its target of 1,246.
This would be a similar build rate to the 1,265 and 1,224 completions in 2022/23 and 2021/22 respectively.
Bromford is aiming to build 12,000 homes over the next eight years.
The association reported an 8.5% increase in turnover for the half year from £141m to £153m with the percentage of turnover from social housing lettings rising from 84% to 86%. Its half-year post-tax surplus remains unchanged year-on-year at £33m.
The 472 homes completed are for social housing tenures, including 212 for social rent, 126 affordable rent and 134 for shared ownership.
Paul Walsh, chief financial officer at Bromford said: “We are pleased that after another challenging six months, our financial performance remains strong. In the face of persistently high inflation against a rent cap, we have maintained our surplus whilst investing over £25m in existing homes and delivering 472 new affordable homes.
Its overall operating margin fell from 39% to 35% and its operating margin on social housing lettings came in below budget at 34%.
Walsh said Bromford has “spent significantly more on service delivery” for residents than expected in order to tackle condensation, damp and mould in existing homes, investing £2.6m against a full year budget of £1.8m.
The association, which has had two cases of severe maladministration upheld by the Ombudsman, including one for damp and mould issues, expects to spend around £4.5m in total to fix condensation, damp and mould problems.