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London housing association reports £92.5m surplus
A large London housing association has booked a surplus of £92.5m in its year-end accounts, as it also reported a rise in the number of homes built for the year.
A2 Dominion Group recorded a 10% rise in its surplus for 2017/18, despite turnover falling from £371.9m to £300.7m.
The 37,000-home association built 954 homes in the period, a rise from 754 in the previous year. However, the percentage of affordable homes it built fell – with 332 for affordable rent or shared ownership in 2017/18, compared to 393 the year before.
In total, £212m of turnover came from its social housing activities, with £11.7m raised from the sale of first tranche shared ownership homes.
Developments for open market sale accounted for £45.9m of turnover in 2017/18, compared to £114.2m the year before.
However, this discounts income from joint ventures, which totalled £130.2m (up from £8.7m), and would have seen the organisation’s income rise to £430.9m if included.
This activity included an £81.5m partnership with Crest Nicholson to provide 232 new homes in Bicester, a tie-up with Nicholas King Homes to deliver 260 homes in the South East and with Mount Anvil to build 1,396 homes in London.
Operating costs reduced in the year to £158.2m from £166.4m to produce an operating margin of 33.3% – one percentage point up on the previous year.
Darrell Mercer, chief executive at A2 Dominion Group, said: “As the country continues to face a significant housing shortage, we are fully committed to helping to address it.
“Our development pipeline is now at its highest ever level of over 7,800 homes and, by continuing to grow our commercial activities, our aim is to provide up to 1,200 new homes each year by 2020.”
