The Midlands-based housing association also cited cost pressures from investment in homes, customer services, and high inflation
Platform Housing Group has reported a decrease of more than £20m in its net surplus after tax.
According to its end-of-year financial results, the figure fell from £49m in the 2022/23 financial year to £26m in the year ending 31 March 2024.
The housing association blamed the decrease on an £18m charge resulting from the closure of Platform’s membership of local government pension schemes and the transfer of “a number of colleagues” to its in-house pension contribution scheme.
In addition, Platform said its operating surpluses and overall margins have also been affected by “pressures as we continue to balance investment in homes, customer services and high-cost inflation.”
Platform, which owns homes across the Midlands, reported an almost 22% drop in its operating surplus from £93m in 2023 to £72m in 2024.
Meanwhile, Platform’s turnover increased in the 2023/24 financial year, standing at £337.1m, compared to £300m in the previous year.
Platform delivered 1,202 new homes in the 2023/24 financial year, up from 1,114 homes as at March 2023.
Of these, 225 (19%) were social rent, 408 (34%) for affordable rent, 544 (45%) for shared ownership and 25 (2%) for rent-to-buy.
Platform reported 1,534 starts on site in the year, which it said is ”the fourth highest number of starts in the sector”.
In addition, turnover from shared ownership first tranche sales rose to £40.7m, from £33.3m in the previous year.
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Platform attributed this growth to a 23% increase in the number of sales and a 15% rise in average prices compared to the previous year.
As of 31 March 2024, Platform reported liquidity of £426m, which it stated is “adequate to cover all projected requirements well into 2025.”
Turnover from social housing lettings increased by 10.5% from £248.2m to £274.2m, in part due to rent increases of 7% set by the UK government, and in part due to a year-on-year increase in social housing homes.
Platform reported that its social housing lettings margin has remained stable at 32%, compared to 32.1% in the 2022/23 financial year.
In addition, its investment in existing homes increased by 61% in the last financial year, rising from £24.4m in 2022/23 to £39.4m at the year-end.
This included an including an increase in energy improvement works from £5.5m to £8.5m, which marks a 55.5% rise. Platform states that 76% of its stock is now EPC C or above.
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