But underlying operating margin also weakens
A list of one-off costs including asset revaluations, building safety provisions and the bill for removing residents from a defective tower is behind the significant rise in Notting Hill Genesis’ (NHG) deficit, according to its delayed annual accounts.
Unaudited figures published in July indicated that the G15 landlord’s pre-tax deficit for the year to 31 March 2026 had more than doubled.
However, the provider’s formal annual report did not follow as expected in September, with NHG announcing it would miss the regulatory deadline for filing for the second time in three years, resulting in the suspension in trading of its £1.8bn bonds.
The full results were eventually published on Thursday and revealed only slightly adjusted figures from the unaudited results. NHG recorded a pre-tax deficit of £284.6m, more than double the £130m reported for the prior year.
The 67,000-home provider said this was “principally due to high levels of non-cash adjustments including revaluations, impairments and provisions for building safety costs”.
During the year, NHG took a £160.3m hit on one-off items, the largest of which was a £71.5m write down on housing assets.
Building safety provisions accounted for a further £58m, asset deregistration costs for £14m and the cost of decanting Stratford Halo an additional £13m.
Hundreds of residents were forced to evacuate the tower in east London last year after cracking was identified in structural columns.
Even before this the impact of one-off costs, the housing association’s underlying operating margin was down from 20% to 15%, which it attributed to high repairs and fire safety expenditure, as well as “under recovery of service charges”.
Turnover was up to £756.9m from £717.9m, while interest cover deteriorated significantly, moving from 53% to negative 49.9%.
The group insisted it continued to have “a strong balance sheet with good levels of liquidity” supported by a £250m raise at the beginning of the period. Net debt reduced from £3.62bn to £3.52bn over the period.
“What is critically important now is to focus on simplifying the group and how we work, to ensure that our efforts translate to lasting improvements for residents and significantly stronger financial resilience,” said Helen Evans, who took over as interim chief executive last month following the departure of Patrick Franco.
“This will take time, and will require us to simplify both how we are organised and to transform the way we work.
“In the year ahead, our focus will be to accelerate the necessary operational and financial improvements, in particular exercising stronger cost control and financial discipline. We must also get a better understanding of how we can improve our forecasting and deliver on our promises.
“There is still significant work ahead, and I do not underestimate the scale of the challenge required, but I am confident that we will deliver safer homes, better and more consistent services and improved outcomes that our residents deserve in this next chapter.”
NHG delivered 740 new homes during the period, the majority of which were for shared ownership. This was above its target of 699 but below the previous year’s 793.
Largest 50 Housing Associations accounts tracker
As we enter reporting season, Housing Today is tracking the financial statements of the largest housing associations in the UK.
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Largest 50 Housing Associations 2025
Housing Today’s exclusive 50 Largest Housing Associations 2025 data table allows you to sort the providers by key metrics including homes managed, turnover, surplus or homes built.
We also analysed key trends from the accounts, crunched the data and highlighted the key organisations in the sector. Click below to access the data tables, analysis and library of reports
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