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Orbit surplus boosted by jump in value of private rented units
Orbit Group has reported a rise in its annual surplus by nearly a third after a boost from the value of its private rented portfolio.
The 40,000-home landlord, which is among the UK’s largest developing housing associations, revealed that its surplus rose to £85m in the year to March 31 2018. Revenue increased 7.2% to £357m.
The rise in surplus was partly due to £4m from the “increase in value of its private rented portfolio”, the group said.
In the past year it built 82 more private rented properties, along with 1,210 for social or ‘affordable rent’, 539 for shared ownership and 199 for market sale.
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The results come three months after Moody’s downgraded Orbit’s credit outlook to ‘negative’ ahead of a bond deal to raise up to £450m. However, the group retained its A2 credit rating.
Orbit, which marked its 50th year last year, is targeting significant expansion across its core areas of the Midlands, East and South East, and is aiming to deliver 20,000 new homes over the next 10 years.
Income from rentals rose by £10m, shared ownership by £19m and market sale by £5m, while its operating margin remained at just over 32%.
The group’s net debt edged up to £1.15bn.
In the medium term, Orbit said it has completed 8,000 homes towards its target of 12,000 by 2020.
Mark Hoyland, chief executive, who took on the job permanently in July last year after five months as interim boss, said: “These strong results demonstrate that our clear and focused strategy is delivering across the areas of service, property, people and profit for a purpose.”
Housing association financial statements 2017/18
Click on the links below to read more reports about individual associations' financial statements:
A2 Dominion reports £92.5m surplus
Aster sees 12% jump in surplus despite margin drop
BPHA sees surplus jump after shared ownership sales boost
Clarion's surplus falls for second year running
Housing & Care 21 records increased surplus
Metropolitan sees surplus fall due to post-Grenfell costs
Midland Heart records £47.8m surplus
Network Homes surplus dips for the second consecutive year
Notting Hill and Genesis post reduced combined surplus
Optivo sees turnover fall in first results since merger
Orbit surplus boosted by jump in value of private rented units
Paradigm surplus drops after £5.6m loan breakage cost
Places for People boosts surplus to £130m
Southern sees dip in surplus due to pensions and safety costs
Sovereign boosts surplus thanks to open market sales
Stonewater increases surplus by 38%
Swan surplus slides after £3.2m cladding provision
Vivid posts increased surplus post-Merger
