Onward returns to profit despite multimillion-pound contractor failure costs

The landlord said 2022-23 was another challenging year due to the impact of the increased cost of utilities and a range of other inflationary pressures. 

Despite this, overall turnover increased to £171.4m in 2023 – an increase of 7.8%.

Its accounts show that in March this year, it successfully renegotiated a permanent amendment to covenant calculations and limits set by lenders to remove major repair spend from the interest cover covenant.

Onward said this will give it additional headroom flexibility to deliver the 30-year business plan.

In August last year the landlord told Inside Housing that it plans to build 5,000 new homes by 2030 as part of a new corporate plan that includes a £300m investment in its existing stock and new environmental commitments. 

In 2022-23 it invested a total of £75.7m in improvements and repairs to its existing stock. 

It also delivered 308 new homes, which it said was its highest annual total yet, and started a further 400.

In her foreword to Onward’s accounts, chief executive Bronwen Rapley said: “The awareness of the risks from damp and mould driven by the tragic loss of Awaab Ishak has made us all even more aware of the link between housing and health and the value of a good home.

“Like most social landlords, this year we have taken a hard look at the quality of homes we offer. The external focus on the condition of social homes is challenging but welcome. 

“We have invested significantly over the last five years both in the quality of our homes and in putting in place teams with the right skills and attitude. We have stepped up to deliver further improvements, whilst putting in place a long-term plan for more and better homes.”

Ms Rapley expects pressure on the landlord’s business plan to continue next year but promised to respond with prudent financial management and by maximising its resources to deliver for residents.