Notting Hill Genesis to post deficit after identifying £110m in one-off costs

Notting Hill Genesis (NHG) has warned it will post a deficit for 2023/24 after identifying £110m in one-off costs.

The £700m-turnover housing association said in a short statement today that since November it has identified and investigated one-off items that will result in “a material deterioration in its full-year forecast.”

It said: “These provisions and write-offs relate substantively to recognition of building safety liabilities already included in our long-term plan cashflows and asset impairments.”

A spokesperson added: “The group remains financially strong. We remain committed to improvement in homes for our residents. In June, we will provide a more detailed trading update for the year ended 31 March 2024 ahead of our full year results.”

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NHG in September reported an 80% drop in its pre-tax surplus for the first half of the financial year from £87m to £18.3m as its sales income fell.

NHG’s annual turnover for 2022/23 fell 13% from £836.9m to £728.1m, with its post-tax surplus dropping 7.7% to £94.4m.

NHG in September announced a plan to spend nearly half a billion pounds (£497.4m) in improving existing stock over the next decade. It described its plan to build new homes as “constrained” but said it will still build more than 1,000 homes in 2023/24 as part of a target to build 5,000 by 2028.