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NHG confirms increased £90m deficit in overdue accounts
Notting Hill Genesis (NHG) has posted an increased deficit of £90m in its overdue financial accounts for 2023-24.
In a trading update in June, NHG revealed that it was expecting an £82m deficit for the last financial year due to “building safety liabilities and asset impairments” of £110m and lower sales figures.
However, the full annual report and financial statements for the year ending 31 March 2024 show an £8m rise to £90m.
The lateness of the large London landlord’s accounts meant it had to temporarily suspend trading for five of its bonds on the markets that total £1.55bn in borrowing.
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The 67,000-home landlord has now applied for the bonds to be reinstated. The delayed accounts come as it was revealed last week that John Hughes, who was deputy chief executive at NHG, left his role at the end of last month.
Mr Hughes, who was also group director of development, announced to colleagues in June that he intended to step down.
He remained in the role until the end of September to help with the transition to a new homes directorate combining development, sales, assets and sustainability under the leadership of Matthew Cornwall-Jones, chief homes officer at NHG.
In its earlier June trading update, NHG explained that it would scale back its development programme to channel investment into improving its existing housing stock instead.
This spending on homes and services for existing residents will rise from £500m to £770m over the next 10 years.
NHG completed 822 homes in the past year and started a further 858.
Despite the challenging environment the landlord is operating in, it maintains that its financial performance and its cost base have “stabilised after the inflationary challenges of the last few years”. It added that it “continues to have a strong balance sheet with good levels of liquidity”.
Patrick Franco, chief executive of NHG, said: “My first full year as chief executive has been one of challenge, change and progress.
“Despite the macroeconomic environment, in particular higher interest rates and inflation, we have taken important steps to become a more resident-focused organisation and have made good progress against our Better Together strategy. Delivering for residents will take time and requires significant operational and cultural change, but we have made a good start.”
NHG has a relatively new chief financial officer. Mark Smith joined the landlord in April from NHS Property Services, which provides landlord and property services for 2,700 NHS buildings across England.
It is also looking to recruit its first chief governance and risk officer to help it maintain compliance with the regulator’s standards.
NHG currently has a G1/V2 rating, but has yet to be awarded a grade for consumer standards under the regulator’s new regime.
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