Jigsaw ‘on track’ to increase development 29%

Jigsaw Homes Group said that it is on track to hit its develppment target of building more than 900 new homes this year, despite a reduced surplus.

The 35,000-home association, in an unaudited trading update today, said it built 316 new homes in the six months to 30 September, a similar figure to the 309 published last year. However it said it is now working on 2,000 homes and is on track to hit its target of 906 homes by 31 March. This would be an increase of 29% on the 701 completed the previous year.

The Tameside-based group however warned that all development continues to be “actively and carefully monitored” due to the volatile market backdrop.

Jigsaw reported a drop in operating surplus from £35.4m to £30.9m “in line with expectations” and a fall in post-tax surplus from £18.2m to £16.8m.

It said: ”At the time of writing, the macroeconomic picture is still presenting real difficulties to both individual households and to companies. High inflation has impacted our value chain has had a notable impact on our cost base over the last twelve months. Elevated interest rates have also increased the cost of some of our debt.”

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Its turnover increased 2.7% from £102.2m to £105m, boosted by a 6.8% increase in social housing lettings income, which accounts for 90% of total revenue. It said shared ownership sales remain buoyant with 55 first tranche sales in the first six months against a full year target of 116.

Brian Moran, who has worked for the association and its predecessor organisations for 33 years, took over as chief executive of Jigsaw earlier this month.