East of England provider built 744 homes in the 2023/24
Flagship Group has increased its surplus by 16%, despite higher management costs and a drop in open market sales.
The 32,000-home housing association, in its financial statements for the year to 31 March, reported a surplus of £57.1m, up from £49.2m. Its operating surplus, which excludes one-off items, rose by 13% over the year, to £90.1m, and its turnover has increased by just under £3m, to £253m.
The group increased its social housing lettings income by 10%, from £167m to £184m, while its shared ownership first tranche income rose 8% from £16.1m to £17.4m
The rise in income was offset by an increase to Flagship’s operating costs on its social housing letting, which rose 9.7% year-on-year to £128.3m.
It said this was due to an increase in management costs caused by a 7% increase in salaries.
It said: “During the year we gave our people salary increases which were commensurate with the cost-of-living pressure they were facing. Furthermore, cost inflation on other management costs has also underpinned the increase in expenditure in the year.”
Flagship also reported a drop in non-social housing income from £67.1m to £51.1m. It sold 66 open market homes in the year, down from 103 the previous year.
Flagship said this surplus will be used to invest in improving its existing 32,000 homes and to build more homes. The group completed 744 homes in 2023/24, similar to last year’s figure of 750.
>> See also: Flagship reports 24% jump in net surplus
>> See also: Flagship submits plans for 1,100-home Norfolk regeneration scheme
Over the year, Flagship invested £95.2m in its existing homes, including over £50m of capital improvements to ensure its properties provide a decent home for residents.
Flagship’s liquidity fell year-on-year, from £251m to £234m. Its cash and cash equivalents also dropped by £20.4m during the year due to a reduction in cash generated through operating activities and investment activities.
Bromford and Flagship said that their merger would unlock significant additional financial capacity, enabling them to deliver 2,000 homes annually for the next 30 years, with a goal of providing 50% of these homes at social rent.
According to the financial statement, the merger would result in Flagship becoming a subsidiary of Bromford Housing and being renamed Bromford Flagship.
The statement said: “Following a detailed review of future forecasts and projections, taking into account the uncertainties presented above, alongside stress testing for possible different future trading scenarios, the group should be able to operate within the level of its current facilities for the foreseeable future.”
Peter Hawes, chair of Flagship Group, said: “By focusing on reducing outstanding repairs and investing in our core teams, we are determined to provide a faster, more reliable repairs service for all our customers.”
Housing association financial statements 2023/24
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