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Optivo sees turnover fall in first results since merger
London housing association Optivo has seen a drop in turnover as it took less from the sale of shared ownership properties compared with the previous year.
Turnover fell from £347m to £317m, thanks in part to a drop in the amount of money the association made from first tranche sales, this figure falling from £34m to £22m.
Optivo also made 29% less from disposing of housing property in 2018, taking in only £21m compared with last year’s figure of £29m.
However, its costs fell by £5m, resulting in an above-average operating margin (the percentage of income left after running costs) of 30.5% – ahead of its target of 29%.
The organisation also completed the development of 470 homes in the year, with 433 of them for affordable tenures. It began the construction of 912 – above its target of 880.
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It also recorded resident satisfaction of 97% and helped 1,045 people into jobs or training through its employment schemes.
The results are the first following the merger of Amicus Horizon and Viridian Housing, which formed Optivo last year.
Following the merger in May 2017, it restructured £760m loans to new terms and conditions and has since signed £375m and issued £150m of bonds in March.
The organisation recorded a basic surplus of £90m, but was required to report a pre-tax loss of £51m in its accounts, due to the impact of changed accountancy rules on the business.
In his statement accompanying the results, Sir Peter Dixon, chair of the Optivo board, said: “In May 2017 we launched Optivo, created from the merger of Amicus Horizon and Viridian, establishing a very resilient and robust business and one that is well placed to withstand shocks and manage risk.
“We set ourselves some challenging targets for our first year and in delivering them we collectively improved the lives of thousands of people.”
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
