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Wheatley’s surplus spikes following Dumfries and Galloway merger
Wheatley Group has posted a £250m increase in surplus following its merger with Dumfries and Galloway Housing Partnership (DGHP).
The group’s surplus for 2019/20 was £244m, compared with a deficit of £7.2m in 2018/19. Wheatley’s deficit last year was due to it changing the way it measured its homes’ depreciation value.
Wheatley’s operating surplus was £315m this year, up 82% from an operating surplus of £56m in 2018/19.
The operating surplus figure includes a £240.9m gain as a result of Wheatley’s merger with DGHP, which joined the group at the end of last year.
Before joining Wheatley, DGHP was Scotland’s second largest registered social landlord with a stock of more than 10,300 homes.
Wheatley’s operating surplus for 2019/20 excluding the DGHP gain was £73.9m, up 24% from last year’s operating surplus.
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The organisation’s turnover increased by 7% from £333.6m in 2018/19 to £357.1m in 2019/20. Of the £23.5m increase, £14.5m is attributable to DGHP joining the group.
Turnover generated from Wheatley’s core social letting business grew 11% from £333.6m in 2018/19 to £357.1m in 2019/20. DGHP is responsible for £14.5m of the £24.5m increase.
The group said the increase in cash generated from its core activities was largely due to a “3.3% rent increase in April 2019 combined with savings generated in management and administration costs”.
Turnover from Wheatley’s factoring and private letting activities in 2019/20 was £28.1m, up 15% from £24.5m in 2018/19.
Over the financial year, Wheatley completed 802 new homes, of which 601 were for social rent, 197 for mid-market rent and four for shared equity.
The landlord received £41.5m in grant from the Scottish government during this period, which helped it maintain its position as the largest developer of social housing in the UK.
Wheatley invested £67.9m in its existing homes over the year, alongside £88.1m on the construction or purchase of new homes.
Wheatley Group now incorporates seven housing associations and owns or manages more than 93,000 homes, making it the largest social landlord in Scotland.
