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Supply chain and COVID-19 issues hit Sovereign’s completions
The continuing impact of COVID-19 and supply chain shortages have led to Sovereign delivering just over half of the homes it expected to, the provider’s latest half-year trading update has said.
The housing association completed 458 homes in the first half of 2021-22, which is 53% of the 857 homes it budgeted for. Sovereign has a total development pipeline of 7,175 homes.
In the trading update the association said that completions were impacted by “the COVID variant, resource and material shortages”.
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“The development programme has continued to be slower than expected due primarily to resource and material availability issues impacting the whole of the building sector, [and] we are monitoring closely and expecting to be more in line with last year’s 1,099 units,” it added.
The unaudited accounts show that turnover rose slightly from £102.7m in the first quarter of 2021-22 to £104.9m in the second quarter.
However operating surplus dropped by 3% between the quarters from £37.6m to £36.4m, and surplus after tax dropped by 5% from £23m to £21.9m.
The Hampshire-based landlord, which owns and manages 60,572 homes, said that it had made “good progress” during the first half of the financial year, despite describing a number of “headwinds”.
These included “materials shortages and increased prices, along with longer lead times to fill vacancies”.
Sovereign stated that it expects to publish its first environmental, social and governance report next month.
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