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Clarion reports rise in surplus and turnover in half-year results
The UK’s largest housing association has released its half-year results today, showing growth in its surplus and turnover.
Clarion published results covering the six months between April and September this year, which showed 3% growth in turnover to £407m from £395m for the corresponding period last year.
The results also showed a sharp 14% rise in its surplus to £96m from £84m and a three percentage point rise in operating margin to 42%.
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This came as the group reduced its spending by £15m in the period, which represents part of the first full year since the merger between Affinity Sutton and Circle last year created the giant 125,000-home landlord.
The group reported net assets valued at £1.43bn, and investment in the period of £143m in new affordable housing – up from £133m in the previous year.
The results are compared to the combined figures from the equivalent period for Circle and Affinity Sutton.
The group endured a turbulent start to life as it was put on regulatory notice by English regulator the Homes and Communities Agency due to long-standing issues with Circle’s repairs service.
But today’s results showed overall resident satisfaction was above the group’s internal long-term target of 80% at 81.1% – a one percentage point rise.
It also saw the total sales margin for the period rise to 31% from 24%.
In total 661 new homes were completed – up from 541, while 815 were started – up from 739. The pipeline of new units currently stands at circa 11,900 new homes.
Mark Washer, chief financial officer at Clarion, said: “The group has delivered excellently against its strategic objectives during the first half of the year and we have continued to meet and exceed all of our service level improvement targets. We are firmly on track to report an excellent performance at the end of the year.”
