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Financial statements and directors remuneration and management costs

Our financial performance for the year continues to be strong.

Our financial performance for the year improved from the prior year due to the continuing strength of its core social housing business streams and the implementation of mitigating strategies for those non-social housing business streams that had been underperforming financially.

The Group's operating surplus stood at £21.0 million compared to £15.0 million last year.

The Group's turnover increased by 5.3% due predominantly to annual rental increases and strong shared ownership sales performance. 63 first tranche shared ownership sales completed in the year, resulting in a net surplus on sale of £1.2 million.

Operating costs for the Group increased by 1.6% mainly driven by repairs and maintenance costs and the impairment of the remaining assets held within Concert Living Limited. Repairs and maintenance costs continue to increase above inflation due to continued high demand, price inflation and a sector-wide focus on building quality.

Operating surplus, prior to gain on disposal of property, plant and equipment, has improved to £20.6 million from £15.0 million last year, with surplus after tax also improving to £11.6 million.

Total fixed assets increased by £37.4 million to £676.3 million. Capital spend on new homes was £36.2 million for the year, with capital grant of £12.3 million.

146 new homes were completed, below the target of 200 with capital investment made during the year in the Group's future delivery programme. Capital spend on existing homes was £12.2 million for the year. Investment in existing homes included £0.8 million of spend towards the Group’s environmental sustainability goals, which was subsidised by £0.3 million of grant funding from the Social Housing Decarbonisation Fund.

Reserves increased by £11.2 million to £351.5 million due to the surplus made in the year and movements in pension liabilities through other comprehensive income.