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Places for People changes procurement strategy to deal with Brexit
Housing association Places for People has changed its procurement strategy to deal with the risks of Brexit.
In its annual accounts for the last financial year, Places for People said that its strategy is designed to reduce the risk of increased costs or delays from EU suppliers.
The accounts also voiced concerns that Brexit could result in “significant economic turbulence”, which could make it harder to access finance.
The UK is currently scheduled to leave the EU on 31 October, although a bill presented by Labour MP Hilary Benn would, if passed, require prime minister Boris Johnson to request an extension until 31 January next year.
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Overall, Places for People’s surplus fell from £130.2m to £95.5m. It said this was the result of ‘negative goodwill’ in the previous year, a way of accounting for a bargain purchase, which boosted the landlord’s surplus by £45.2m last year.
Places for People said its underlying surplus had grown from £85m to £95.5m, with its turnover increasing by 10% from £754.4m to £827.1m.
Of this turnover, 44% came from affordable housing, with 19% coming from leisure management, 15% from development and the remainder from other sources.
The housing association, which owns 66,000 affordable rented homes and manages a total of 198,000 properties, built 1,876 new homes in the year, 851 of which were affordable. It also started work on 2,647 more homes.
David Cowans, group chief executive, said: “We are delighted to have completed another successful year across our group; it has been an exciting period in which we have continued to develop strategic partnerships and build neighbourhoods where communities can thrive.”
Andy Winstanley, group executive director for finance at Places for People, added: “Our strong financial performance allows us to continue with our overall growth strategy, which in turn supports increased investment in our communities and the delivery of even greater social impact initiatives.”
Places for People’s accounts also provided details on its post-Grenfell fire safety programme. It has started a programme of installing sprinklers in all buildings of six storeys and above.
