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Bromford revenue rises as landlord narrowly misses development target
Housing association Bromford has posted an increased revenue of £290m, but it narrowly missed its development target for the financial year.
In its accounts for the financial year ending March 2023, the landlord posted a turnover of £290m, up from £284m the previous year, while surplus before tax stood at £75.3m, down from £79.2m.
On development, Bromford narrowly missed its housebuilding target, developing 1,265 homes against a target of 1,289 for the year.
Of those completions, 554 were for social rent, which it said was the most homes of this tenure built by any housing association in England last year. One in five homes were built by its in-house construction team.
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Bromford, which manages 44,000 homes across the Midlands and the South West of England, said it sold 69% of the homes it built for either sale or shared ownership within one month of completion.
Headline social housing costs stood at £3,780 per unit, up from £3,550 last year. Bromford said the cost increase was driven by increases in management, service charge costs and major repairs.
Social housing contributed to 84% of turnover during the year and Bromford’s social housing operating margin of 34%. Overall margin remained above 30% for the year, with interest coverage at 3.1x.
The housing association stepped up investment in its existing homes to £56m, as it continued attempts to bring outstanding repairs to below 6,000.
Bromford also met the targets on its portfolio of sustainability-linked loans, with 87% of its homes at Energy Performance Certificate Band C or above.
Robert Nettleton, chief executive of Bromford, said the year saw “significant challenges to our sector and the wider economy”.
He added: “We are proud that our customer advocacy score has increased by 4% to 83% and that we retained our top G1/V1 ratings from the Regulator of Social Housing.”
Paul Walsh, chief finance officer at Bromford, said: “We have responded to future pressures created by the rent cap and rising inflation, driving cost efficiencies to maintain strong margins and re-imaging our business plan through several iterations to once again maintain our A2/A+ credit ratings.
“We continue to enjoy significant covenant headroom and the financial capacity to meet the investment needs of our existing and new homes programmes.”
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