Southern Housing Group delivers stable performance in 2017-18
Southern Housing Group, one of the largest housing associations the UK, released its Annual Report and Group Financial Statements for the year 2017-18.
The Annual Report demonstrates the Group’s consistent underlying financial performance is underpinned by a robust balance sheet and liquidity position.
The numbers show that every penny of the Group’s £45m surplus and more has been invested in building new and improving existing homes for those who need them and delivering services to our customers.
In 2017-18 the Group invested £119m in its homes – £15m in improving existing homes and £104m in completing 197 new homes with a further 700 new homes on site in construction across London and the South East. This is a £5m increase in the investment amount from the previous year.
Throughout the year, the Group maintained its G1, V1 rating from Homes England, and is rated A2 (stable outlook) by Moody’s Investor Services.
James Francis, Group Finance Director at Southern Housing Group, said, “The consistency in revenue and investment demonstrate the stability of our business. The results also reflect the decisions we have taken to keep our customers safe and secure in their homes and to take greater control of our defined benefit pension obligations.”
“This agility is a benefit of the Group’s long-term approach. Over the course of the year for every pound of surplus generated during the year we invested £2.68 in existing and new homes while continuing to build future investment capacity and resilience.”
Key highlights for the Group during 2017-18 include:
For the second successive year, 78% of the Group’s £200m turnover was from social housing lettings – demonstrating a stable business and the Group’s clear commitment to its charitable objectives.
The actions the Group has taken to keep its customers safe and secure in their homes and take greater control of its defined benefit pension obligations led to non-recurring costs of over £6m during the year. This has contributed to a reduction in the Group’s operating margin and surplus.
Investment of £104m allowed the Group to complete 197 new homes with a further 700 on site, in construction, at 31 March 2018. Additionally on 30 April 2018, the Group completed the purchase of 496 homes from Hyde Group.
During the year the Group launched its new development procurement framework and Southern Housing Construction Limited, an in-house construction company. This followed the successful launch of Spruce, the Group’s new brand for lettings in the private rented sector.
During the year, the Group re-negotiated its current loan agreements to increase its investment capacity and resilience in line with the Board’s risk appetite. This work was completed in May 2018.
The full Annual Report and Group Financial Statements 2017-18 which include the Group’s Value for Money self-assessment, can be found at www.shgroup.org.uk/annual-reports