Clarion boosts surplus in first quarter

Clarion boosted its surplus in the first months of the year, according to its latest quarterly update.

This morning the housing association posted an update covering the quarter to 30 June 2025.

It showed that net surplus before taxation and fair value adjustments had increased to £50.2 million, from £27.3 million in the first quarter the year prior.

The housing association said this predominantly reflected an improvement in its operating surplus, which rose from £64m to £85.5m.

This was largely the result of a £16m increase in disposal surplus as a result of a large stock transfer completing in the quarter along with an uplift in rental income. 

This was partially offset by increased cost of sales and higher operating costs.

Clarion’s group turnover for the quarter was broadly stable at £260.5m, which was just £200m higher than last year.

It increased total capital investment in new homes from £104.1m to £132.6m, as well as existing homes, which increased from £17.6m to £25.5m.

It comes after the publication last week of Clarion’s full-year results to 31 March 2025.

The 125,000-home provider reported record turnover of £1.09bn, but its operating surplus was down from £237m to £232m, while its net surplus fell from £87m to £82m.

While it marks the third successive year that Clarion’s operating surplus has fallen, the association nonetheless said the figures reflected a “strong underlying performance” compared with the previous year, noting that they included £29m of impairments and provisions for building safety and remediation, as well as contractor failure.

It promised to seek recovery of costs from third parties “where appropriate”.