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Metropolitan Thames Valley’s surplus drops by 15%
Metropolitan Thames Valley Housing (MVTH) has reported an underlying operating surplus drop of 15% for 2019/20, while spending on fire safety has increased following a major blaze at one of its blocks.
The 57,000-home landlord’s unaudited year-end results showed that its surplus – before deducting non-recurring integration and pension costs – was down to £130m from £154m in 2018/19.
In a stock market update, the association said that overall spend on fire safety has risen from £13m in 2018/19 to £16m in 2019/20.
The increased spend on fire safety comes after a large fire at MTVH-owned Worcester Park in south-west London last September, in which 23 households lost their homes.
Geeta Nanda, chief executive of MTVH, said the group has set up a building safety team to ensure safety of customers in high-rise blocks.
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She added: “This is particularly important to us following the serious fire at Worcester Park, where we acted swiftly to put the safety of residents first and rehoused those impacted immediately.”
Total turnover increased by 13% from £410.8m in 2018/19 to £465m in 2019/20, while the proportion of turnover from social housing lettings fell from 79% to 72%.
Social rent arrears increased slightly from 4.55% to 4.82% after including an additional £3m provision for bad debts.
The group’s liquidity increased by 11% from £549m in 2018/19 to £611m in 2019/20, while drawn borrowings rose from £1.8bn to £2bn.
MTVH completed 1,022 homes in 2019/20 – down from 1,037 the previous year – with 781 of these for affordable rent. In 2018/19, 907 of the homes built were for affordable rent.
Ms Nanda said: “Our financial position remains strong, with £611m of available cash resources and sufficient security and access to capital to meet our objectives.
“With uncertainty around the COVID-19 pandemic and its longer-term economic impact for the sector as a whole, we are working hard to assist our residents and stand ready, as a stable and well-run organisation, to play our part with the rest of the sector in tackling the national challenges which lie ahead.”
