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A2Dominion sees completions halved as surplus slides
Large London landlord A2Dominion has reported a fall in its supply of new homes of more than half while its surplus and turnover also fell.
In its end-of-year accounts, the 38,000-home landlord reported a 52% drop in completions from 875 in 2018/19 to 415 in 2019/20.
New supply of social housing units fell in line with this decrease from 225 to 98 in 2019/20 – a reduction of 56%.
The organisation said that the phasing of completions within its development programme meant that A2Dominion was anticipating a lower output in 2020 and actually exceeded its target of 357 units.
“The group is targeting to deliver up to 1,200 homes per year on average over the 2020-25 strategy period, but this will continue to be under constant review by the board, factoring in the ongoing economic uncertainty caused by the coronavirus pandemic,” it said.
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Despite the fall in completions, the social landlord pointed to a “healthy” development pipeline with 1,401 starts on site in the year, including 391 for affordable and social rent.
A2Dominion also recorded reductions across other key financial indicators including turnover and its overall surplus.
Net surplus for the year fell from £23.9m to £19.5m as a result of “movement in the fair value of properties and financial instruments,” the group said.
Elsewhere its turnover dropped by 13% from £372.2m to £320.4m in 2019/20, while turnover from social housing lettings remained stable at £209.8m.
Darrell Mercer, chief executive of A2Dominion, said: “I’m delighted that we have started onsite with over 1,400 homes this year, out of a healthy pipeline of 6,000, which will be developed over the next five years.
“In these uncertain times I am also pleased that our ongoing community investment programme has delivered such strong results and is having an incredibly positive impact on our residents.”
Ian Cox, chair of A2 Dominion, said: “It is possible that the impact of the pandemic will be with us for some time and could permanently change some aspects of how we operate. We will continue to review our plans to ensure we are in the best possible position to adapt and respond.”
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