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HA announces £75m surplus

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Published by Max Salsbury for 24dash.com in Housing and also in Finance

HA announces 75m surplus HA announces 75m surplus

Image: Money via Shutterstock

Housing association Affinity Sutton has reported a surplus of £75 million in its annual report for 2013/14.

It's highest ever surplus, the cash will all be used to development new homes and maintain and improve existing ones, Affinity Sutton says.

According to the 57,000-home provider: "This robust financial position creates a solid foundation for an ongoing development programme over the coming years, against a backdrop of reducing public subsidy for social housing."

The social landlord saw its turnover increase by about 5% to £320m, up from £305m in 2012/13. "Significant" efficiency savings meant that the increased turnover was directly reflected in the operating surplus, up from £107m to £122m, an increase of 14%.

The report shows that £54m was spent on major works and improvements to existing homes. A further £51m was spent on routine repairs, making a total investment of £105m in Affinity Sutton's properties.

About £213m was invested in building more than 800 new homes, and over the next 10 years Affinity Sutton expects to spend more than £2.1 billion on 10,000 new homes.

Mark Washer, the HA's group finance director, said: “Having a sustainable long term development programme in a period of minimal grant support requires a focused approach to deliver efficiencies and improve our business over the long-term.
"This is essential to fill the gaps left by the collapse of government grant so that we can remain one of the country’s leading developers of affordable homes. A weaker financial position would directly compromise our ability to help tackle the country’s acute housing crisis.

"Our current forecast is that over the next 10 years we will invest £2.1 billion in building new homes, and our expectation is that only £48m of that – less than 3% – will be funded by government grant.

“But we are about much more than just bricks and mortar. It is fantastic that the impact of our community investment programme delivers £13 of social value for every £1 spent.”

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