You are viewing 1 of your 1 free articles
Surplus dips at Platform as spending on existing homes increases 50%
Large Midlands landlord Platform Housing Group has continued its increased spending on existing homes to make them more energy efficient, but has seen a dip in its net surplus over the same period.
The 48,000-home association invested £14.1m in the six months to the end of September, compared with £9.4m in the same period last year.
Platform said the hike was due to “component replacements, materials cost inflation and energy efficiency works”. This jump in spending mirrors that seen in its last full year.
In addition, the association said it is delivering energy improvements to around 1,000 homes as part of the government’s Social Housing Decarbonisation Fund.
Platform is among many major landlords stepping up their decarbonisation efforts as the sector aims to meet a deadline of 2030 for all homes to at least have an Energy Performance Certificate rating of Band C.
READ MORE
Elizabeth Froude, chief executive of Platform, said the trading environment “remains complex”.
She added: “The year to date reflects our key priorities, which are about putting our customers and the standard of their homes at the front of the queue.”
The landlord also reported a 10% rise in turnover to £166.4m, helped by an increase in revenue from social housing lettings.
However, Platform’s post-tax surplus slid 10% to £28m. The drop was mainly due to lower surpluses on fixed asset sales. On an operating basis, the group’s surplus rose 3% to £47.8m.
On completions, the association handed over 480 homes in the half year, which was five more than last year.
Of the homes built, 258 were for shared ownership, 115 for affordable rent and 107 for social rent.
At the same time, Platform’s investment in new homes jumped 29% to £135.7m.
Turnover from shared ownership first tranche sales was £18.3m, down slightly from the previous half-year figure of £18.9m. However, the number of reservations the association received on shared ownership properties in September was the highest since April 2021.
The number of unsold shared ownership homes was 168 at the half year; 89 of these have been reserved.
Gearing rose to 45.3%, compared with 42.8% at the same point last year. EBITDA-MRI interest cover was down 24 percentage points to 204%, but within the Platform’s target minimum of 120%.
The association’s tenant arrears, excluding shared ownership properties, were 3.2% compared with 3% at the same time last year.
On Tuesday, Katie Gilmartin, head of business development and innovation at Platform, told a House of Lords Committee that part of the landlord’s development programme was focused on Category 2 modular homes.
However, she said the cost of Category 1 homes, which are built entirely in a factory, are not currently “workable” for the association.
Sign up for our development and finance newsletter
Already have an account? Click here to manage your newsletters
