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Supported housing provider records increased surplus
Housing & Care 21 has recorded a surplus of £21m for the past financial year, up 26% from £17m in 2016/17.
This was achieved, according to the association’s annual results, despite a fairly significant reduction in its turnover from £198m to £179m, thanks to an even greater fall in operating costs from £165m to £141m.
The majority of Housing & Care 21’s turnover, as in the previous year, came from social housing lettings. It took in £143m in this area, or 80% of the total figure – up from 69% in the previous year.
The drop in turnover for the association, which is England’s largest provider of retirement housing and extra care accommodation, was due to the disposal in the previous year of the Home Care business.
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This arm of the association handled care services in the community, which were transferred to another specialist provider in 2016/17.
In its strategic report for the year, Housing & Care 21 said: “We believe that this strategic decision has considerably reduced, though not eliminated, the potential risk of major quality and/or safeguarding incidents occurring which would have a significant impact on our reputation.
“This is because the care we now deliver is based at a single location, which is predominately in our own properties and with on-site supervision. We no longer have individuals working alone in the community, unsupervised in service users’ private homes.”
The elimination of Home Care from its accounts also helped its financial position, removing the £1.5m loss from the previous year.
Earlier years had seen more significant losses from the business, but Home Care was sold part of the way through 2016/17.
In their joint statement for the accounts, chair Lord Ben Stoneham and chief executive Bruce Moore said the year had been one of “sustained progress and strong performance”.
They added: “Last year we reaffirmed our core strategic purpose, priorities and principles alongside seven strategic ambitions in a new strategic plan that looks forward to 2021 and beyond. We are now in a good position and prospects for the future look promising.”
In November last year, Housing & Care 21 priced a £250m bond issue, saying that the current policy environment – just after a government U-turn on plans to extend the Local Housing Allowance to supported housing – helped it to get a cheaper rate.
Housing association financial statements 2017/18
Click on the links below to read more reports about individual associations' financial statements:
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Aster sees 12% jump in surplus despite margin drop
BPHA sees surplus jump after shared ownership sales boost
Clarion's surplus falls for second year running
Housing & Care 21 records increased surplus
Metropolitan sees surplus fall due to post-Grenfell costs
Midland Heart records £47.8m surplus
Network Homes surplus dips for the second consecutive year
Notting Hill and Genesis post reduced combined surplus
Optivo sees turnover fall in first results since merger
Orbit surplus boosted by jump in value of private rented units
Paradigm surplus drops after £5.6m loan breakage cost
Places for People boosts surplus to £130m
Southern sees dip in surplus due to pensions and safety costs
Sovereign boosts surplus thanks to open market sales
Stonewater increases surplus by 38%
Swan surplus slides after £3.2m cladding provision
Vivid posts increased surplus post-Merger
