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Notting Hill Genesis to post deficit after finding £110m in ‘exceptional’ costs
Notting Hill Genesis (NHG) will post a deficit for 2023-24 after identifying £110m in “exceptional” one-off costs.
The large London housing association issued a deficit warning in a statement to the stock exchange on Tuesday 23 April.
The charges “relate substantively” to recognition of building safety liabilities and asset impairments, it added.
NHG first warned in November 2023 that a fall in the sale of new homes and increased repair, building and fire safety costs would impact on its operating surplus.
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That month, the association reported a 79% fall in its half-year surplus from April to September 2023 to £18.3m, compared with £87m the year before.
Since November, the landlord said it had “identified and investigated some one-off items”, which will result in a “material deterioration” in its full-year forecast.
These provisions and write-offs amount to an “exceptional” charge of £110m, it said, “which will result in a full-year deficit”.
In its recent statement, the association insisted that it “remains financially strong” and is “committed to improvement in homes for our residents”.
NHG will provide a more detailed trading update for the year ended 31 March 2024 in June, ahead of its full-year results.
A new chief financial officer, Mark Smith, joined the organisation this month.
In its last full-year results for 2022-23, the landlord booked a surplus of £106m, despite falling turnover from sales and a £6.9m building safety compensation payment to residents.
In the same year, NHG wrote down eight development schemes after factoring in lower sale prices due to the challenging economic environment.
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