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Large Manchester landlord blames rain as completions drop
Great Places has reported a 17% drop in year-to-date completions, which is below its target, partly due to November’s wet weather causing on-site delays.
The Manchester-based landlord handed over 303 homes in the nine months to the end of December 2023, compared to 365 in the same period last year.
Great Places, whose long-serving boss is stepping down this summer, has a full-year target of 786 completions, meaning it would have to more than double the year-to-date amount in the final three months of its financial year.
“Site challenges earlier in the year coupled with the very wet weather in November have meant that a number of sites have experienced delays, particularly with drying out apartment blocks,” the group said in a trading update yesterday.
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However, the filing added: “There are 39 live sites in the programme with handovers rolling from an increasing number so the new homes are on their way.”
Many other landlords have reported a fall in completions and starts partly as focus has shifted to investment in current stock in light of environmental targets and a heightened focus on housing conditions.
Great Places, which operates around 25,500 homes, also warned that its annual surplus would be slightly below its previous forecast.
At the half-year point, Great Places said that its pre-tax surplus was expected to be £28m, missing its target of £31.7m. The landlord pointed to extra spending needed to tackle damp and mould in its homes.
In its latest update, the landlord said it now expects its annual pre-tax surplus to be £27.5m.
This is due to a “small number” of open market sales being deferred into the early part of the next financial year, the group said.
On its financial ‘golden rules’, Great Places said its targets around interest cover, gearing and operating margin were met in the period and are expected to be achieved at year end.
However it warned that short-term “cost pressures” would bring it close to its operating margin golden rule, with a figure of 26.5% forecast for its full year.
Last month Great Places revealed that its chief executive, Matt Harrison, had decided to step down after 10 years in the job and 30 years in total with the group.
The news came four months after it emerged that Great Places and neighbouring Manchester landlord Mosscare St Vincent’s had abandoned plans for a merger.
Great Places is also in the process of recruiting a new chief property officer with an appointment expected by the end of next month.
The group also has a new finance boss after Mike Gerrard was hired from another Manchester landlord, Onward.
In its last full year, the landlord reported a broadly flat surplus year-on-year of £21.4m on turnover of £167.8m.
The group has a G1/V2 rating with the regulator.
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