Guinness reveals smaller operating surplus in half-year update

The Guinness Partnership recorded an operating surplus of £48.7m at the end of September 2023, slightly lower than the £49.2m surplus in September 2022.

Guinness’ operating margin also decreased from 24.9% in September 2022 to 22.4% in Q2 of last year.

While the housing association’s turnover increased to £218m in September 2023, compared to £198m at the same time the year before, a significant rise in operating costs has offset this increase.

Guinness said it had increased its expenditure on responsive repairs and empty homes, with the rise in demand for repairs and average cost per repair having grown.

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During the period, Guinness has invested £108m in its development programme with a further £77.3m (£22.5m capital spend and £54.8m revenue spend) invested in existing homes. 

In a half-year update published just before Christmas, Guinness stated that, at the end of September 2023, 359 new homes had been completed, 346 of which were affordable tenures.

Guinness expects to complete 883 new homes by the end of the 2023/24 financial year, which would mark an increase compared to the 814 new homes delivered in year ending 31 March 2023.

On 4 December 2023, Guinness’ partnership with West London-based housing provider Shepherds Bush Housing Association (SBHA) reached legal completion, and SBHA became a subsidiary of The Guinness Partnership.

The partnership owns and manages 65,000 homes across England and, through the merger with SBHA, has accrued an additional 5,000 homes previously managed by the West London provider.

Guinness reported that its building safety programme is progressing to plan. It has 39 high-rise buildings and 16 of these required an external wall system investigation. Those investigations are now complete.

Guinness has 205 medium-rise buildings, of which 87 may require an external wall system investigation. So far 20 have been completed and a further 28 are due to be finished before March 2024.

All of Guinness’ buildings with aluminum composite panel (ACM) cladding have been fully remediated and work to install high-pressure laminate (HPL) cladding on seven remaining high-rise buildings is ongoing with four commenced on site and the remaining three due to commence in 2024.

Guinness’ credit ratings with Standard & Poor’s and Moody’s are at A- (stable) and A3 (stable) respectively.