But surplus down in interims for first half
Orbit group have posted increased turnover and better-than-predicted new housing completions in its half-year update.
In the six months to 30 September, the housing association recorded turnover of £196m, up from £189m in the same period the previous year.
The organisation also completed 341 new homes in the half-year, against a target of 330. A total of 293 of these homes were for affordable tenures/
In its most recent full-year results, Orbit saw its development drop by 30% to 870 in the year to 31 March 2024.
“Rental income, voids and sales of fixed assets are marginally ahead of budget, with maintenance costs also favourable due to timings for planned works,” the group said in a statement to the market today.
“As a result, group turnover and operating surplus for the half-year are ahead of budget and, despite continued upward pressure on costs, operating surplus percentage remains in line with budget.”
Surplus was down marginally from £22m to £18.7m.
“Orbit remains financially robust with a strong liquidity position, and continues to invest in our homes and services, delivering new affordable homes, and providing customers access to services and support,” said Jonathan Wallbank, Group Finance Director.
“These results reflect Orbit’s resilience and strength as a business.”
In the first half of the year, Orbit invested £57.7m in homes, up from £43.4m. The group now has 85.5% of its homes at EPC band C or above.
Phil Andrew, group chief executive, said: “Whilst this is a challenging time for the sector, our performance remains strong and, with the launch of our new five-year Strategy and Everyday Excellence transformation plan, it is an exciting time within Orbit.”
>> See also: Orbit sets target to build and regenerate 5,700 homes by 2030
He said the plan would reshape how the organisation works and put in place “the right structures, culture and capability, systems, processes, and technology, so we can be more consistent at being great social landlord”
Orbit recently announced it had appointed a new interim director of supported housing and independent living, Jude Cross, from A2Dominion.
Last month, it sold 250 homes in East Hertfordshire and Epping Forest to 6,000-home housing association B3Living as part of an ongoing stock rationalisation strategy.
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