Clarion’s surplus nearly doubles in half-year results

“A re-phasing” of a planned disposal programme in 2023-24 in response to market conditions was the primary driver, it said. Clarion has transferred 700 homes to other registered providers so far this year.

Shared ownership first-tranche sales generated a £4m operating surplus in the six-month period, up from £2m in the first half of 2023-24.

The landlord also spent less on new and existing homes compared with the previous year. It invested £196m in new homes and £177m in improving and maintaining properties, down from £234m and £205m, respectively, in 2023-24.

Clarion booked a £3m impairment charge for its Lampton Rise development in London, but fully offset this with a £3m impairment reclassification due to a tenure change at its Bath Road development in Bristol.

The landlord completed 792 new homes, up from 606 in the first half of 2023-24, of which 616 (78%) were for affordable tenures.

Its operating margin was 25%, up from 22% the year before, while rent arrears continued to improve at 6.91%, down from 7.41% at the end of 2023-24.

Clarion said the results showed a “strong and resilient financial performance”.

Mark Hattersley, chief financial officer of Clarion, said: “While we are heading into what can be the more challenging winter period, we are well placed to continue to deliver for our residents and retain a financially robust position.

“Alongside the strong financial performance, we have delivered an increased number of new homes and continue to invest significantly in our homes and in our communities. We couldn’t achieve all of this without the ongoing support of our investors, which was demonstrated by our successful return to the capital markets in May with a new £250m, 33-year sustainability bond.”