Housing association Bromford has hailed the “strength” of its latest financial results, despite “significant challenges” in the sector.
The Gloucestershire-based organisation reported turnover of £153m for the six months to September, during which it delivered around 470 homes. Turnover from social housing lettings rose to £132m, which accounted for 86% of Bromford’s total turnover for the period.
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Bosses at the company said it’s post-tax surplus was £33m, the same as in 2022, although its operating surplus of £54m and 34% overall operating margin on social housing lettings were slightly down on what it had budgeted, due to inflation, rent controls, and investment to resolve damp and mould issues, investing £2.6m in the first six months of the year, against a full year budget of £1.8m.
The group said it expected to deliver £5m in efficiency savings this year through its strategic cost review, 80% of which have already been actioned, which will allow it to meet its budgeted social housing operating margin of 36% by year-end.
Chief executive Robert Nettleton said: “Our mid-year results demonstrate our operational and financial strength as we continue to respond to significant challenges in our sector and the wider economy.
“In the face of economic uncertainty and increasing focus on the condition of our homes, our priority is the wellbeing of our customers and our people. We are proud that our customer advocacy score has risen once again and is now at 89%; that we have invested over £25m in our existing homes; and that we have delivered 472 new affordable, energy efficient homes.”
Of the 472 homes completed in the first half of the year, 212 were for social rent, and Bromford said it was on course to complete more than 1,200 homes by the end of March.
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All of these will either be for rent or shared ownership and in the first six months of the year Bromford achieved an operating margin on shared ownership first tranche sales of 21%.
Bromford has secured planning permission for its biggest development to date for 180 new homes in Matson, Gloucestershire, and to start work on development in Winchcombe and Cheltenham which will deliver 100 and 71 new homes respectively.
Chief finance officer Paul Walsh added: “We are determined to provide homes that our customers are proud to live in and at the same time, we are committed to financial discipline. The vast majority of our income is generated in our core business of social housing lettings, which makes up 86% of our turnover.
“At 34%, our social housing operating margin is amongst the highest in the sector, but we recognise that it is below budget. We have spent significantly more than budgeted on service delivery for our customers, most notably on tackling condensation, damp and mould. We will continue to invest in existing homes and will not compromise the safety and wellbeing of our customers.”
Bromford added that it had secured more than £200m of new loan funding during the period.