GreenSquareAccord posts first-ever surplus after ditching care services

The results were driven by a rise in rental income, to £12.2m, and a steep drop in one-off costs. The previous year, GSA spent £18.8m exiting from loss-making care services and impairments on care and support schemes.

This year’s surplus also incorporates a one-off gain of £2.4m from the acquisition of Alpha Co-op, a housing co-operative.

The surplus was offset by a £5.9m increase in operating costs, reflecting pay rises for staff, and a 13% rise in service charge costs. GSA also took a £650,000 hit from costs relating to exiting from aspects of its care and support business.

Earnings before interest, tax, depreciation and amortisation, major repairs included (EBITDA MRI) stood at 83% for 2023-24, up from 55% the previous year. Core social housing activity represented 82% of GSA’s income, up from 81% the year before.

GSA handed over 463 homes in 2023-24, comprising 360 general needs and 103 shared ownership properties. The development figure was slightly below its target, due to “challenges in construction and contractor delivery”. It expects to complete a further 438 homes over the course of the next year, rising to 1,000 completions in the next five years.

Shared ownership sales income for the year was £9.9m, down from £11.3m in 2023. A total of 93 shared ownership homes were sold. Outright sales of 47 homes generated £20.2m in income, up from £7.7m in 2023, but margins were lower than planned because of rising costs and completion delays.

Spending on existing homes rose to £22.1m in 2023-24 and the landlord began a 273-home decarbonisation project with the Matrix Housing Partnership, using government funding. It said it was on track for all its homes to reach an Energy Performance Certificate rating of Band C by 2030.

Mr Dennis, who joined GSA in March, said the group had invested in repairs to clear a backlog which had developed during the pandemic. It began the financial year with 11,670 repair jobs in progress and finished it with 6,971. 

However, he noted that “we still have a significant amount of work to do to improve the perception customers have of our organisation and our services”.

In September 2023, the Housing Ombudsman launched a special investigation into GSA’s complaints-handling process. GSA said most of the cases under inspection reflected “ongoing challenges” following its merger in April 2021, when it was still agreeing a single complaints-handling process.

“We now have a much more robust complaints-handling process and many of the challenges identified in these cases are now either resolved or are in the process of being resolved,” it said.

In November 2023, GSA regained its G1 governance rating from the Regulator of Social Housing, while it remains at V2 for financial viability. Mr Dennis said “there is more to do” and vowed to focus on accelerating GSA’s fire safety programme.

Mr Dennis said this year GSA would focus on a “transformation” of its housing management system to deliver services more effectively, and improving the quality of data it holds. The new housing management system is planned to be implemented by 31 March 2025.

He also paid tribute to former chair Robin Bailey, who stepped down in March after a six-year term and died in May following a “tenacious fight with illness”.

“Robin’s dedication, leadership and overall contribution to the organisation in some of its most challenging moments have shaped the foundation for our success,” Mr Dennis said.