Refinancing costs and IT write-down push 18,000-home association to deficit
Yorkshire Housing has posted a £30.6m annual post-tax loss
The 18,000-home housing association reported the loss, which compares to a £16m surplus the previous year, in its accounts for the year to 31 March.
Yorkshire said its bottom line was impacted by a one-off cost of £35.8m from exiting fixed rate lending agreements as part of a major refinancing last year. Yorkshire Housing says the move will improve liquidity, reduce interest charges and free up loan security. The landlord also wrote down the value of an IT system by £5.3m due to it moving towards a different system which it says will enable “data-driven decisions.”
Yorkshire’s operating surplus fell £34.7m to £22.47m, but it increased its turnover 4.9% to £148.7m. The turnover figure was boosted by an increase by a 64% increase in shared ownership revenue to £23.4, while income from social housing lettings increased 3.2% to £88.7m.
The group completed 700 homes in the year, up from 497 the previous year and ahead of its target of 610 homes. It also exceeded its 400-home target for starts, beginning work on 497 properties.
The group has set itself a target of building 8,000 homes by 2030 and says it has 3,752 homes under contract.
Nick Atkin, chief executive of Yorkshire Housing, in a statement said: ”This year has seen us exceed the challenging targets we’d set for both newbuild starts and completions against the backdrop of rising prices and increasing demand for materials. We’ve also exceeded our very challenging sales targets. This has enabled us to invest even more in both new and existing homes. ”
In the foreword to the group’s accounts Atkin said: ”Over the last year our focus has been on fine tuning our data and decision-making processes to ensure we are targeting our investment to where it is needed and will have the most impact. This includes the wider ‘place’ – not just bricks and mortar.”
Housing association financial statements 2021/22
Southern boosts turnover through quadrupling of market sales income G15 housing association reports strong market sale margin as it continues merger talks with Optivo
Great Places sees turnover boost on 69% sales leap Manchester-based housing association increases revenue and underlying surplus but confirms it missed development target
Guinness builds less than half of targeted homes 64,000-home association becomes latest provider to repor development plan disruption due to supply chain issues and partners ‘re-profiling’ schemes
Onward Homes reports £22.5m loss due to refinancing costs and write-downs 35,000-home north-west association ‘on target’ to build 1,400 homes by 2024
Clarion boosts surplus by 52% Housing association income increased due to near doubling of open market sales turnover and sale of stock to other providers
Stonewater reports halving of surplus and missed build targets as costs hit 34,000-home housing association hit by increase in operating costs
Moat misses build target but revenue rises South east-based social landlord reports £181m turnover but feels impact of labour and materials squeeze
Metropolitan Thames Valley’s surplus falls 33% following tower block fire costs 57,000-home housing association’s balance sheet hit by multiple factors, including increased operating costs and a fall in home sales
L&Q’s surplus plunges after admitting major write down Housing association giant reports series of impairments reducing surplus by £53m
Orbit sees housing completions rise Materials and labour shortages mean growth was slower than expected for 47,000-home social landlord
Peabody boosts turnover and surplus due to shared ownership staircasing Housing association giant plans to start work on 7,000 new homes by March 2023
Sanctuary misses development target by a third due to ‘pandemic effects’ Housing association giant undershoots target but increases completions 34% year-on-year
Vivid increases development to above pre-pandemic level 33,000-home housing association completes 1,400 homes
Platform scales back targets for development and energy efficiency 46,000-home housing association increases turnover boosted by increased shared ownership sales
Later living giant Anchor posts £24.4m surplus following loss last year Housing association ‘on track’ with increased 5,700-home development plan
Hyde delivers fewer social homes than expected due to ‘delays and shortages’ 48,000-home housing association delivers 74% of affordable target, but hits lowered development target overall.
EMH Group misses development target by 40% Housing association says build hit by planning delays, materials shortages and pandemic impacts but is confident of hitting five-year target
No comments yet