Audited figures confirm £130m deficit as CEO Patrick Franco says he’s proud of colleagues working to turn non-compliant landlord around

Notting Hill Genesis built 786 homes in the year to 31 March, its annual financial statements show.

This is less than the 824 the 68,000-home provider completed last year and significantly below its original target of 1,203. The G15 landlord said four schemes had now been moved into 2025/26, so will be reflected in next year’s report.

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NHG, which is working to regain complaince with regualtory standards, said it has also “temporarily reduced” its new homes programme, focusing on regeneration project and schemes already under contract. It said it will nevertheless deliver 3,000 homes over five years.

The financial statements, which were finalised too late to be discussed at the group’s annual general meeting last week, were published today.

They confirm figures previously trailed by NHG in an unaudited update in June showing the group’s deficit has increased from £90m to £129.5m. Its operating surplus dropped from £33m to £5m.

This included a £119.2m write down in the value of its 3,000-home private rental portfolio. The group also posted a £14.5m deficit on development and sales due to a reduction in development services income and landbank sales.

However, the group’s margin increased from 17% to 20%.

Its provisions and impairment for building safety works nearly halved from £83m to £42m. NHG said of the 172 blocks requiring remediation, 47 have now been completed and work underway on a further 70.

The group’s turnover increased from £711.8m to £717.9m. It was boosted by a £29.4m increase in rental income, offset by a £16.5m decrease in sales income, which NHG said was due to development programme timings.

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.

A regulatory inspection found issues of concern with its business planning and risk and control frameworks that led to ‘poor outcomes’ for tenants. It was also awarded a ‘C3’ rating against the consumer standards, meaning it is failing to meet outcomes and needs to improve.

In a note to the accounts, chief executive Patrick Franco said: “I am proud of the way in which our colleagues have responded to the challenges faced this year and want to thank them all for their hard work, resilience, and the care they put into improving our residents’ lives, because what we do really matters.

“I am particularly grateful to those who mobilised so quickly to develop our regulatory compliance action plan, which provides a clear direction of travel to make the required improvements.”

NHG appointed former Peabody chief executive Brendan Sarsfield as chair in June. It also earlier this year recruited troubleshooter Léann Hearne, former chief executive of Livv Housing Group, to its board as part of its plan to regain compliance. Dave Sheridan, former chief executive of Keepmoat has also joined the board as chair of the homes sub-committee.

More 2024/25 housing association financial statements

Greensquare Accord puts loss-making offsite manufacturing business up for sale 25,000-home landlord seeks buyer as it reports overall deficit for 2024/25

A2 Dominion returns to surplus after £100m sale of stock to Westminster Council G15 landlord exceeds completions target but did not start any homes on site in 2024/25 in line with shift to focus on stock improvements

Turnover up 13% as Great Places exceeds development target Operating and pre-tax surpluses also

Guinness reports deficit and misses completion targets, citing impairment charges and contractor failure But turnover and operating surplus up

L&Q records lowest annual completion numbers for a decade Housing association expected to be biggest builder in sector despite pivot towards repair and maintenance

Turnover up at Jigsaw Homes pre-tax surplus dropped from £21.5m to £17.6m.

Aster announces £1bn plan to nearly double spend on stock improvements Aster Group has pledged to invest £1bn over the next seven years in improvements to its existing homes

Housing 21 targets increased completions based on ‘stabilised’ construction market Turnover and surplus up at 10,000-home provider

Onward Homes increases surplus and turnover despite repair costs pressure Landlord completes 434 homes, up from 329 year-on-year

Peabody surplus drops 18% as maintenance spend rises Full accounts published for 109,000-home landlord

MTVH targets 1,200 completions this year G15 landlord exceeds operating margin target as sales increase

Surplus falls at Orbit as inflation and maintenance pressures push up costs 47,000-home landlord margin reduces as it steps up investment in improvements to existing stock

Riverside moves back into surplus after two years of deficit Liverpool-based landlord increases operating margin after sale of loss-making care business Baycroft

Southern moves back into surplus but margins squeezed G15 landlord targeting £14m of efficiencies this year

Rising spend on existing homes puts pressure on Platform interest cover Turnover and surpluis rose last year at the provider

LiveWest boosts completions but misses affordable homes target Open market and shared ownership sales lower than targeted

Stock sales help boost turnover and surplus at SNG Landlord completes grading of all stock to identify homes for regeneration, retrofit or disposal

Home Group reports increased turnover and surplus Housing association delivers more than 1,400 new homes in the year

Anchor increases surplus amid regulatory troubles Turnover also up after year of consumer and governance regulatory downgrades

Stonewater reports ‘strong’ financial results on back of £35m rise in rental income But landlord’s surplus falls to £12m

Midland Heart sees surplus soar £25m The Birmingham-based landlord said the increase was a one-off from divestments of its retirement homes

Turnover up but surplus down at Moat Provider also increases new home completions

Paradigm’s annual completions down 21% but still on track to meet targets Buckinghamshire-based housing association says new build “central part” of mission as it increases surplus and turnover

Vivid builds more than 1,500 homes for the second successive year Hampshire landlord increases surplus and turnover

Shared ownership income drops at Bromford Flagship Newly merged 80,000-home landlord confirms turnover and surplus increase in audited figures

Record turnover at Clarion but surplus drops and completion targets missed Housing association will seek to recover costs from third parties as remediation provisions and contractor failure blunt surpluses

Sanctuary meets development target but sales drop 125,000-home housing association says a number of investors are interested in buying its student housing portfolio

Karbon boosts development but falls short of target 32,000-home association bidding to register a for-profit provider called Graphite Living to attract funding

BPHA returns to surplus Shared ownership sales dip and operating costs rise for Bedford-based landlord

 

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