Southern surplus falls 27% as chief executive departs

The most significant reason for the reduced surplus, however, was Southern gaining less on the revaluation of its investments.

In 2016/17, Southern made £20.5m from this source, but last year this figure was just £3m. These investments, it said, are properties let in the private and commercial rented sectors.

The association also said that it has completed 100% of fire risk assessments across its stock since the Grenfell Tower fire, and has completed significant procurement projects to appoint new major works, repairs and gas contracts.

In May this year, Southern announced that Alan Townshend would replace outgoing chief executive Tom Dacey when he retires this summer.

In his first interview since the appointment, Mr Townshend told Inside Housing that supply chain issues had hit development in the past year, which was why Southern had only built 197 homes, falling out of Inside Housing’s Top 50 Biggest Builders list.

In their joint introduction to the results, Mr Dacey and chair Arthur Merchant wrote: “The group is in good shape for the years ahead – developing new homes, maintaining and improving our existing homes, delivering excellent customer services and supporting our customers.

“There will be a lot of changes and challenges to navigate but we have every confidence that the group is robust, resilient and on a clear course to deliver on its strategic objectives.”