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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.

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Orbit Group's surplus rises by nearly a third @OrbitGroup #ukhousing

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.”

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