Aster’s development of new homes has dropped by 24% and its pre-tax surplus has dropped by £4.7m
Aster Group completed 402 new homes in the first half of the 2024/25 financial year, down from 533 homes in the same period in 2023.
In its half-year unaudited trading update, Aster reported a pre-tax surplus of £18.6 million for the first six months, compared to a pre-tax surplus of £23.3m at the end of September last year. The group described the half-year as a “challenging period.”
In the update, Aster however said it had seen “good build progress” at its first two-wholly owned developments in Silvertown and Southall.
Aster currently has a contracted pipeline of 2,946 homes.
Aster’s turnover for the six months to 30 September was £158.5m, a slight decrease from £159.9m during the same period the previous year.
During the six-month period, Aster said it has continued to see high demand for responsive repairs, as well as additional investment in our housing stock.
The group spent £51.8m on maintaining its stock, slightly lower than budget due to the timing and related underspend on planned works. This is compared to a total expenditure of £106.2m on maintaining homes last year.
The group’s overall operating margin was 17.9%, an increase of 15.5% year-on-year.
It said: ”The group continues to face cost challenges which have been tightly controlled, with savings and efficiencies seen across the business. “As we approach the winter months, we have a full plan prepared in readiness for the usual predicted uplift in demand and spend on maintenance and repair services and, as usual, this is expected to lead to a reduction in full year margins from the September levels.”
The 32,000-home housing association completed first tranche sales of 146 homes, generating £18.3m, while noting that “the property sales market remains challenging for all first tranche, open market, and joint venture sales”.
>> See also: Bromford increases spend on existing homes amid 20% increase in demand for repairs
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In the same period of 2023/24, Aster saw “high demand” for shared ownership homes, with first tranche sales of 215 units, generating £28m over the six months.
In April, the group closed all four of its Local Government Pension Schemes and anticipates that the remeasurement of its assets and liabilities will lead to a settlement loss for the year ending 31 March 2025.
The final amount will not be known until the pension funds confirm the final cessation payments.
In 2023/24, Aster built 997 new homes, including 517 homes for affordable rent and 405 shared ownership, and 75 open market homes through our joint ventures.
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