25,000-home landlord seeks buyer as it reports overall deficit for 2024/25
Greensquare Accord has put it loss-making timber frame factory business Low Carbon Living Homes (LoCAL) up for sale as it focuses on strengthening its core social landlord services.
The 25,000-home landlord said in a statement that if no buyer is found it will close its Walsall factory by next April.
Greensquare Accord’s latest financial statements reveal LoCAL made a loss of £1.3m in 2024/25. The Midlands-based association said the factory in the year “delivered 139 plots” on its own schemes with 236 delivered to other developers.
Mona Shah, chief finance and investment officer, said: “LoCaL Homes has made an important and innovative contribution to housebuilding in the UK, and our product has been used by housing providers on developments up and down the country - that is something to be proud of. However, the landscape has changed significantly and while it has been a difficult decision to exit, it is a necessary one.
“We have a strategic objective to simplify and strengthen our organisation to enable us to focus on our core offer and to realise our vision of being a great social landlord
Greensquare Accord’s accounts show the group fell into deficit for the year. It posted a deficit of £13.6m, compared to a surplus of £3.8m last year.
The group incurred £14m in one-off costs including impairments of housing care and support properties and offices identified for disposal. The group also recognized a £3.7m impairment on an investment in an open market sale joint venture and £2.5m from the disposal of two dementia care homes.
Its operating surplus excluding one-off items fell from £51.7m to £37.9m.
Greensquare Accord’s turnover dropped by 4% to £221.9m. This was due largely due to shared ownership first tranche and open market sales income reducing by £11.8m, offset by a 5% increase in social housing lettings income.
The group’s operating costs increased by £3.5m. The group increased its capitalised spend on repairs and refurbishment from £221.m to £22.6m while its revenue repairs spend increased from £49.1m to £54.8m.
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