A2Dominion sees jump in surplus as completions fall

It comes as A2Dominion has faced a number of difficulties of late. In September, the English regulator said it was investigating the association for possible non-compliance.

In the same week, the landlord revealed it had fallen to a £12.8m deficit in its last full-year.

An executive shake-up was announced earlier this month.

Looking ahead, today the London-based landlord said that due to increased spending on planned maintenance in its second-half, its year-to-date surplus is expected to “fall in line with its full-year budget”.

In the half-year, A2Dominion’s operating margin was 23.4%, a slight rise from the same period last year. 

On development in its half-year, the association reported 245 handovers, compared with 390 in the same period last year. Of the 245 completions, 124 were classified as affordable. 

However, the landlord said that by the end of its financial year next March, it expects 757 homes to have been handed over, which is 12 more than the previous year. 

Like many of its peers, A2Dominion is re-thinking its development plans in the face of rising costs.

In an investors update in September, the association said its previous aim to build 900 homes a year was being “refocused”. Instead, it said it would look at “more regeneration of existing estates and meeting zero carbon targets”. 

A2Dominion has 1,748 homes in its development pipeline over the next two years, with half of those for private sale, it said in its full-year update in September.