Notting Hill Genesis first half turnover drops due to development delays

Notting Hill Genesis (NHG) has reported a drop in turnover and surplus in the first half of the year.

The 68,000-home housing association, in an unaudited trading update today, reported turnover of £350.3m for the six months to 31 September.

This is 3.5% down on the £363.1m reported in the same period the previous year.

NHG said the drop in turnover was due to a “delay in development schemes” affecting sales of homes.

The group also said its operating surplus is down year-on-year due to the timing of recognition of service charge income. Its overall pre-tax surplus has fallen from £37.4m to £23.3 year-on-year

NHG is continuing to work on an improvement plan after being downgraded to a non-compliant ‘G3’ governance grade by the Regulator of Social Housing in November. RSH found governance failings led to poor health and safety outcomes for residents.

In today’s update it said it has completed all milestones due in quarter two as part of its regulatory compliance plan. It said the percentage of buildings with an in-date fire risk assessment and no overdue actions has increased from 75.7% to 90% in a year and it has completed stock condition surveys on 77% of its homes, while its building safety programme “remains on track.” It said it has completed 40% of the turnaround plan’s milestones to date.

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Patrick Franco, chief executive at NHG, said: “As an organisation undergoing a significant transformation, I am pleased with the progress we have made in the first half of the financial year.

“We have strengthened the fundamentals of the organisation, increased our investment in residents’ homes and improved the service we provide, whilst also maintaining a robust financial position.”