Landlord completes grading of all stock to identify homes for regeneration, retrofit or disposal
Sovereign Network Group (SNG) has increased its turnover and surplus boosted by extra income from sales of homes under its strategic asset management programme.
The 85,000-home landlord, in its financial statements for the year to 31 March, reported turnover of £794.2m, up 12% on the £707.8m reported last year. Its surplus rose 19%, from £62.9m to £74.8m, over the same period.
The increases were driven largely by a £51.6m increase in social rent income, while SNG’s receipts from sales of housing properties (including shared ownership staircasing) increased by nearly £20m, from £33m to £52m. Surplus from the sale of these properties increased by £18.9m.
SNG said the sales were driven by its strategic asset management programme, through which it has graded all its homes against its Homes and Place Standard and identified them for regeneration, retrofit or disposal. All of its core assets have now been graded.
The increase in income from social housing and stock sales was offset by a 12.5% rise in operating costs due to increased maintenance and repairs and increased insurance and depreciation charges. The group’s interest and financing costs also jumped from £128m to £147m.
SNG completed 1,559 homes in the year, equivalent to 1.8% of total stock. This is below the group’s initial 2.3% target and down on the 2,015 completions recorded last year.
It said: “The overall number of homes delivered is down compared with the previous year because of the natural variability of a complex development programme and reprogramming of existing schemes following supply chain issues.” SNG started 2,486 homes in the year and acquired land to develop a further 3,865 into its pipeline.
>>See also: SNG issues £400m bond as it aims to build 25,000 homes over the next 10 years
>>See also: Spinning plates: an interview with Sovereign boss Mark Washer
SNG also announced yesterday that it has agreed a £100m loan with Lloyds Banking Group for retrofit. The loan is partially backed by the National Wealth Fund, the UK’s sovereign wealth fund.
This comes a week after the Advertising Standards Authority told Lloyds Banking Group it must not run an advertisement again saying it has “provided £19.5bn to the social housing sector since 2018”, nor must it”misleadingly imply that they had donated money to social housing projects when that was not the case”.
Lloyds Banking Group has since said it disagrees with the decision and it believes the advert was clear and aligned with standards.
More 2024/25 housing association financial statements
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
No comments yet