Platform’s development spend falls as contractor insolvencies delay three schemes

Platform Housing Group has invested less in development in 2024/25 due in part to scheme delays.

The 50,000-home housing association, in an unaudited trading update this morning, said it completed 1,028 homes in the year to 31 March. This is down on the 1,202 completed the previous year.

The group’s spend on new homes was 8% down year-on-year, in part due to difficulties with schemes due to contractors becoming insolvent.

It said: “The development programme continues to progress well. Despite three schemes experiencing delays due to contractor insolvencies, all of these schemes are now back on site.

“Development expenditures of £287.1m were slightly down on the prior year figure of £313.2m, in part due to these delays.”

Platform however started work on 1,645 homes, exceeding its target of 1,600 set out last year.

>>See also: Platform appoints first ever sustainability director

>>See also: Platform doubles size of Euro debt instrument to £2bn

The group increased its turnover by 11% from £337m to £374m. This was driven largely by a 9.3% increase in social housing lettings income, although turnover from shared ownership first tranche sales also rose by £8m to £48.7m.

Platform’s adjusted surplus after tax rose 17% from £44.4m to £52.3m, after taking into account one-off pension costs. It’s operating surpluses excluding fixed assets sales rose 13.7% to £97.1m while its operating margins were 25.9%, marginally up on 25.4% last year.

It said: “Encouragingly, both the operating surpluses and overall margins have increased in comparison to the prior year.

“This has been achieved in spite of a challenging national and global environment and whilst maintaining our commitment to invest in our homes and services. We are monitoring the potential trade war coming from the current US administration and have analysed our supply chains, which are not linked to America.”

Platform increased its spend on improving existing home by 59% from £39.4m to £62.5m as it focused on energy efficiency performance. It said this put pressure on its EBITDA-MRI based interest cover, which increased from 125% to 129%.