Pre-tax surplus rises 37% at Northern landlord

Gearing stood at 37.7% as of 30 September 2023, up from 35.3% in 2022, and interest cover for the period was also up, to 218.3%

Karbon Homes owns and manages 32,400 homes across Yorkshire and the North East. It has acquired two organisations since its previous half-year results in 2022.

In December 2022, 54North Homes, a 3,000-home landlord, joined Karbon as the result of a merger between Leeds and Yorkshire Housing Association and Karbon subsidiary York Housing Association.

In July 2023, a further 439 homes were acquired because of the transfer of engagements into Karbon Homes from STHVT. These homes and teams are now fully integrated into the group, Karbon said.

It noted that the new pre-tax surplus figure of £21.9m included £4.7m of goodwill adjustments, which reflect the differences between the fair values of the properties and loan facilities acquired and their historic costs.

There were no goodwill adjustments in the previous year’s six-month results.

Karbon said it had developed 314 new affordable homes across the North East and Yorkshire in the period to the end of October 2023. It said it was “optimistic” about achieving “close to” its target of 700 new homes by the end of the financial year.

Scott Martin, executive director of resources at Karbon Homes, said the results highlighted “continued positive performance in delivering our key strategic aims of providing as many good-quality homes as we can, delivering an excellent customer service and shaping strong sustainable places for our communities” amid a “challenging macro-economic environment”.