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Clarion sees surplus rise in half-year results
Clarion Housing Group has seen its net surplus rise by 29% to £100m despite it forking out a further £18.6m in fire safety costs.
The 125,000-home housing association posted a revenue of £511.9m in its six-month trading update to 30 September 2021 – up £80.2m from £431.7m in the equivalent period last year.
Operating surplus rose by 17.7% from £139.4m to £164.1m and net surplus rose from £70.7m to £100m over the same period.
The landlord stated it also invested £53m in its existing homes, an 83% rise on the same period in 2020.
In its statement of comprehensive income, Clarion said: “At £164m, operating surplus is £25m higher than the first six months of the prior year, primarily driven by an £11m increase in rental income, an £8m higher surplus from development sales and a £33m increase in surpluses generated from existing property disposals.
“This has been partially offset by a £30m increase in operating costs, resulting in an operating margin of 32%.”
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Development output of new homes increased slightly to 892 homes, of which 86% were for affordable tenures.
A total of £18.6m was invested in fire safety over the period. Clarion said it has now completed inspections of all its buildings that are taller than 18 metres.
In September, following a series of in-depth investigations, the landlord evacuated the 22-storey Clare House in Bow, east London, due its large panel system.
Residents were forced to evacuate after surveys found that the building had non-compliant cladding and a dangerous structure.
During the half-year period, Clarion was also picked as a strategic delivery partner by Homes England. This will see the association bring forward 4,770 new affordable homes under the Affordable Homes Programme 2021-26.
The landlord has also been allocated grant funding from the Greater London Authority to support its plans to deliver 2,000 new affordable homes in the capital between 2021 and 2026.
Mark Hattersley, chief financial officer at Clarion, commented: “I’m proud that we have delivered such a strong financial and operational performance during the first half of the year.
“Our financial strength and resilience provides the platform for us to continue to build new homes, support our residents and invest in Clarion communities across the country.”
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