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Southern sees dip in surplus due to pensions and safety costs
Southern Housing Group’s annual surplus dropped by a quarter in the last financial year due to pension costs and investment in safety works post-Grenfell, its annual report has revealed.
The housing association – which provides more than 27,000 homes in London and the South East – recorded a group post-tax surplus of £44.9m in 2017/18.
This was down from £62m in the prior year as operating costs grew, including a £6m one-off hit to cover defined benefit pension obligations and health and safety works.
Metropolitan, which released financial statements for 2017/18 this week, also saw a dip in its surplus due to safety works.
They are among the first housing association statements to be published for the period.
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Group turnover was down very marginally to £199.7m. Income from social housing lettings was up a shade at £155.5m while property sales turnover grew by 47% to £27.8m.
The group invested £119m in its homes in 2017/18. This included £104m on new build work, with 197 units completed and a further 700 new homes on site.
James Francis, group finance director at Southern, said: “The consistency in revenue and investment demonstrates the stability of our business. The results also reflect the decisions we have taken to keep our customers safe and secure in their homes and to take greater control of our defined benefit pension obligations.
“This agility is a benefit of the group’s long-term approach. Over the course of the year, for every pound of surplus generated during the year we invested £2.68 in existing and new homes while continuing to build future investment capacity and resilience.”
