Newcastle Housing Association residential group increases income
The Home Group housing association has seen its turnover grow despite the challenges of the pandemic.
The Newcastle The organization, which is building a major new headquarters near the city’s St James’s Park, has released its annual report which shows turnover rose 6% to £ 429.9million.
But its operating profit fell by more than £ 10million to £ 68.9million, partly due to lower income from disposals of existing homes, but also due to a significant depreciation of an affordable housing program.
Read more : go here for more real estate news
Home Group added that it had created more than 1,000 new homes, although this was slightly below its target amid a pause in construction activity at the start of the pandemic and actions to secure the cash flow of the organization.
The homes were a mix of affordable rental and homeownership properties, new homes for sale, and properties delivered through joint ventures.
President John Cridland said: “Each year, it seems, we face challenges – whether political, economic or social. And every year, we take on these challenges.
“However, this past year has challenged us like never before. Covid-19 has tested every inch of our business, our energy and determination, our values and our strength of character.
“I am proud to say that we have withstood all the tests we have faced. Colleagues should be immensely proud of what they have accomplished in the face of such adversity. I know I am.
“Even with the expected declines in some areas of our operations due to Covid-19, our overall performance was again strong.”
In the annual report, Home Group said that a planned relaunch of its
five-year strategy in 2021 had been delayed by the pandemic and other challenges, and would now occur next April.
He said its asset base remained strong at £ 684million, while cash and unused facilities available to it at the end of the year stood at £ 431million.
But he warned that building materials and materials were becoming more and more
difficult to find, and also pointed out that the removal of a number of
Government support measures related to the pandemic could impact several of its customers.
Home Group said it is at or above average data for its industry peers in six of its KPIs, including average repair time and overhead as a percentage of revenue.
But it was below industry averages in seven other areas, including new social housing supply and arrears.
He said this was due to “wise decision making as we monitor the outside environment during the pandemic” and didn’t think action to turn the tide was needed.