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Pre-tax surplus at Karbon Homes more than doubles thanks to merger activity
Karbon Homes has seen its pre-tax surplus jump to more than £83m, driven in part by its merger activity over the last financial year.
The 30,000-home landlord’s accounts for the 2022-23 financial year reported the jump in its surplus before tax, from £35.6m in the previous year to £83.4m.
Turnover increased around £10m to £165.6m, white its operating surplus nearly doubled to just over £100m.
Karbon’s accounts showed that this was due to rent increases of 4.1%, rental income from the development of new homes, and growth in its rebranded subsidiary 54North Homes.
54North was born out of the merger between York Housing Association and Leeds and Yorkshire Housing Association, following a transfer of engagements at the end of last year.
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Karbon’s upturn in surplus also benefited from the decision to take over the 1,800-home Byker Community Trust, which operates the iconic Byker Estate in Newcastle.
Beyond the merger activity, the association started 762 homes and completed 529, up from 458 in the previous year. Its current target is to deliver 4,000 homes across the North East and Yorkshire by 2028.
Karbon also spent more than £30m to ensure its existing stock meets the Decent Homes Standard.
The landlord’s interest cover was down to 182%, which it said was due to a £10.2m increase in capitalised major repairs.
Paul Fiddaman, group chief executive of Karbon, said: “The past year has been an incredibly challenging one for the housing sector and for our customers, and the past 12 months have seen us face a series of hurdles across the organisation.
“But despite the difficult external environment we have found ourselves in, facing lots of competing demands and expectations, we haven’t lost sight of our core purpose: to provide our customers, colleagues and communities with a strong foundation for life.
“I’m very proud of what we have achieved through the 2022-23 financial year and proud of our colleagues, who have remained committed to the delivery of our key strategic aims, providing good-quality homes, an excellent service for our customers and strong, sustainable places for our communities.”
Just last month, Karbon completed the transfer of 439 homes from the South Tyneside Housing Ventures Trust.
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