39,000 home landlord beats development target
A2 Dominion has significantly increased its turnover and surplus off the back of strong revenues from sales.
The 39,000-home housing association, in its annual results for the year to 31 March, reported turnover of £465.8m, up 54% on the £303m reported for the same period the previous year. Its surplus rose more than sixth-fold from £6.4m to £42.1m.
The revenue and surplus figures were boosted by increased income from sales. The group generated £100.6m in income from homes developed for sale, compared to £37.5m the previous year, while land sales brought in an extra £55.1m. Income from shared ownership sales increased from £3.1m to £38.4m year-on-year.
It said: “The increase in operating surplus is largely due to an increased level of sales activity, selling 505 homes (2021: 337) and a higher surplus from sale of further tranches of shared ownership properties that were held as fixed assets”
The provider, which is part of the G15 housing association group in London, also exceeded its target for development in the year, completing 971 new homes against a target of 953. It started work on 540 new homes against a target of 500. The group has 3,300 homes in its development pipeline.
The group in its accounts described building safety as its ‘number one priority’ and said it has spent £6.7m on temporary fire safety measures as well as applying to the Building Safety Fund for more than £31m.
A2 Dominion earlier this year announced the appointment of Thirteen group boss Ian Wardle as chief executive, following the retirement of long-time chief executive Darrell Mercer. Wardle took up the role last month.
Anne Waterhouse, who served as interim chief executive of A2 Dominion last year due to Mercer’s health issues, said: “We have continued to demonstrate financial resilience, which acts as an enabler to attract and utilise the investment we need to support the delivery of our property maintenance programmes for our homes, alongside our new homes programmes. The current external economic environment creates challenges for our organisation and our customers, so our focus on this financial resilience for the coming year remains key to us.”
Housing association financial statements 2021/22
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