The 67,000-home housing association’s accounts were late as it was reviewing one-off costs, most of which related to building safety
Notting Hill Genesis has reported a £90.2m deficit after identifying £101.5m in one-off costs, the majority of which related to building safety liabilities and impairments.
This compares to a surplus of £106.1m in 2022/23.
The accounts, which were published this afternoon 11 days after the Regulator of Social Housing’s 30 September deadline, identified £53.7m in building safety liabilities and £10.1m in asset impairments.
NHG’s bonds were de-registered as the housing association also missed the deadline of 27 September to provide accounts to its bond trustee M&G Trustee Company.
>> See also: Notting Hill Genesis accounts delayed as it reviews one-off costs
>> See also: Notting Hill Genesis to reduce development to 600 homes a year
M&G Trustee later agreed to an extended deadline to receive the accounts of 25 October. NHG has today applied for the listing of each of the bonds to be reinstated.
Notting Hill Genesis (NHG) also faced a deficit of £19.2m relating to housing stock and incurred a write down of £21.2m due to the sale of an internal software system WorkWise and an insurance settlement.
Ian Ellis, chair of NHG, said that “the deficit stands in stark contrast to the healthy surpluses we have consistently made for many years”, adding that “we on the group board are reassured that one-off exceptional items accounted for a significant proportion”.
Ellis added that the board is “confident that recognising those items now puts us in a stronger position for the future, a confidence that is being borne out by initial results for the first few months of the new financial year”.
NHG’s chief financial officer, Mark Smith, said that the group “remains in a strong position” and “our underlying performance is stable”.
The group’s turnover including sales dropped from £728.1m in 2022/23 to £711.8m in 2023/24.
NHG said the £16.3m decrease is largely explained by the £35.5m decrease in sales revenues resulting from the timing of its development programme.
The association’s operating surplus also plummeted from £217.9m to £33m in 2023/24.
NHG delivered 822 new homes during 2023/24, up from the 459 homes it completed in the previous year.
The London-based housing association also made 858 starts, exceeding its target of 321 and last year’s total of 459 starts.
During 2023/24, NHG invested almost £40m in improving its existing homes, which it said “is four times higher than the amount we spent five years ago, and is set to increase further”.
NHG also announced that its deputy chief executive and group director of development and sales John Hughes stepped down at the end of September, after 16 years at NHG and its predecessor organisations.
An NHG spokesperson said Hughes announced to colleagues in June that he intended to step down as group director of development.
He remained in the role until the end of September to help with the transition to a new homes directorate combining development and sales, assets and sustainability under the leadership of our chief homes officer, Matthew Cornwall-Jones.
Chief executive, Patrick Franco, said: “My first full year as chief executive has been one of challenge, change and progress. Despite the macroeconomic environment, in particular higher interest rates and inflation, we have taken important steps to become a more resident-focused organisation and have made good progress against our Better Together strategy.”
He added: “Delivering for residents will take time and requires significant operational and cultural change, but we have made a good start.”
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