Lincolnshire landlord posts £3.5m loss
The largest social landlord in North Lincolnshire made a loss of more than £3.5 million in 2011/12 after the cost of managing its homes rose by £5.8 million.
North Lincolnshire Homes, which manages almost 10,000 homes, generated a turnover of £34.4 million but soaring operating costs, totalling £36 million, saw that figure turn into a £3.5 million loss.
The figures, revealed in the association’s annual report, represent a decline of more than £6 million from the £2.9 million in surplus it made last year.
However, North Lincolnshire also produced savings of £2.6 million through the year, outstripping the £1.1 million of savings it had originally targeted. The vast majority of savings came from its capital works programme. Despite that, more than £4 million was spent on repairs.
Speaking about the loss, Ian Dixon, director of Finance at North Lincolnshire, said: ‘Although our report shows a loss in the surplus for the year, it results from a one-off £10m investment in environmental works which were brought forward by 12 months. Not only has this benefited our tenants by delivering the improvements early, it also demonstrates a saving as we had budgeted for more than this figure originally. We can confirm the business is still performing strongly.’
North Lincolnshire Homes was set up in 2007 following the transfer of homes from the local council. Since the transfer, it has completed improvement work on more than 6,000 homes.
‘The year 2012 is a big year for us because it marks the end of our first five years as your landlord and gives us a great reason to celebrate some of our achievements so far,’ said chief executive Andy Orrey in the annual report.
‘Myself and all the team here feel immensely proud of some of the things we have been able to deliver in the past five years.’