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Metropolitan grows turnover and surplus in 2016/17
A large London housing association has boosted its turnover and operating surplus in some of the first financial statements to be released this year.
Metropolitan announced turnover of £266m for the financial year 2016/17, up almost 9% from the £238.4m recorded the previous year.
This left it with an operating surplus (the figure left after day-to-day running costs) of £96.3m, up from a restated £84.2m for the prior year.
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Its operating margin of 36% is one percentage point up on last year and above the sector average for 2015/16 of 27.6%.
The organisation’s surplus after tax was £80m, up from £71m. Not-for-profit housing associations reinvest surpluses in existing stock and new supply.
The 37,000-home housing association restated its 2016 figures following a review of grant amortisation on some of its shared ownership properties.
During the year it built 832 homes with 302 for affordable rent, 22 for social rent, 300 for shared ownership, and 208 for private sale.
The landlord invested £190m in acquiring land and building new properties. It has a development pipeline of 5,803 homes.
At the end of the financial year, Metropolitan had net debt of £969m, up from £889m in the previous year, with 72% of its debt coming from banks and building societies. It has £56m of loan finance maturing in the next five years.
Its gearing – net debt divided by capital and reserves – grew four percentage points to 59%.
Ian Johnson, executive director of finance at Metropolitan, said: “In the face of another year of exceptional change and continued market uncertainty, our results show that we are well placed to grow organically with a strong pipeline well on track to deliver homes at a rate of 1,000 per year.”
