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Housing association posts increased surplus post-merger
Newly merged association Vivid Homes has reported a 34% increase in its annual surplus from £49.4m to £66.7m.
The organisation managed to boost its turnover from £211.1m to £228.5m thanks in part to an increase in the amount of money it made from market sales, it revealed in its financial statement for 2017/18.
In 2016/17, it took £9.6m in turnover from market sales, but this increased last year to £26.1m.
At the same time, Vivid’s income from social housing activities remained roughly steady, rising slightly from £190m to £191.7m.
Apart from the increased income from market sales, the association recorded a gain of £1.2m from movement in the fair value of its financial instruments.
Duncan Brown, director of finance and technology at Vivid, said: “We’re delighted to have posted such a strong set of results in our first year after the merger.
“And securing our £150m private placement in April means we’re well-placed to keep delivering on our ambitions.”
The merger that formed 30,000-home Vivid, between First Wessex and Sentinel, was completed last April, making 2017/18 the first year in which it has operated as a merged organisation.
The financial statement compares Vivid’s financial data for 2017/18 with combined data from First Wessex and Sentinel from previous years.
Mark Perry, chief executive, added: “We made a commitment to our customers and other stakeholders that we would build a strong business capable of delivering more homes and bright futures. Our first year’s results as Vivid demonstrate that we’re delivering on that commitment.
“But there’s more to do. And our strong results also demonstrate that we’re well placed to continue to play our part in meeting housing need and creating opportunities for customers to thrive and prosper.”
Housing association financial statements 2017/18
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Vivid posts increased surplus post-Merger
