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Aster sees 12% jump in surplus despite margin drop
Aster Group has reported a 12% jump in annual pre-tax surplus despite a drop in operating margin.
In its annual report, the 30,000-home association revealed that pre-tax surplus hit £49.6m in the year to 31 March 2018.
Revenue in the period rose 7% to £204.7m, driven by shared ownership homes sales. Turnover from this segment climbed £16m to £36.3m, with 357 homes of this tenure completed.
However, Hampshire-based Aster reported an overall drop in operating margin to 28%, down from 33.8% the prior year. It blamed this on a £3.6m impairment charge for office properties and £2.4m of one-off “management costs”.
Operating margin for its social housing business also slid, down to 35.2% from 39.9% the previous year due also to the £2.4m management costs.
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The group completed 939 homes in the year, up from 829 the prior year.
In the current financial year it is targeting building around 1,000 homes, the group said.
Meanwhile its joint ventures with Galliford Try’s housebuilding division, Linden Homes, are expected to deliver almost 900 homes over the next six years in Hampshire and Devon. The group also plans to build 400 new homes in Oxfordshire, 135 houses in Surrey and Sussex – its first forays into these counties – and 100 in Christchurch, Dorset.
Looking ahead, Bjorn Howard, Aster’s chief executive said: “We are confident of continuing this momentum and are committed to building more homes, creating a positive economic and social impact in the communities we serve.”
Aster, like all housing associations, operates a ‘not-for-dividend’ model, investing its income in its development programme, upgrading existing stock and services and funding The Aster Foundation programme.
Housing association financial statements 2017/18
Click on the links below to read more reports about individual associations' financial statements:
A2 Dominion reports £92.5m surplus
Aster sees 12% jump in surplus despite margin drop
BPHA sees surplus jump after shared ownership sales boost
Clarion's surplus falls for second year running
Housing & Care 21 records increased surplus
Metropolitan sees surplus fall due to post-Grenfell costs
Midland Heart records £47.8m surplus
Network Homes surplus dips for the second consecutive year
Notting Hill and Genesis post reduced combined surplus
Optivo sees turnover fall in first results since merger
Orbit surplus boosted by jump in value of private rented units
Paradigm surplus drops after £5.6m loan breakage cost
Places for People boosts surplus to £130m
Southern sees dip in surplus due to pensions and safety costs
Sovereign boosts surplus thanks to open market sales
Stonewater increases surplus by 38%
Swan surplus slides after £3.2m cladding provision
Vivid posts increased surplus post-Merger
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