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Stonewater sees surplus nearly double despite COVID-19 challenges

Large social landlord Stonewater saw its surplus nearly double despite the coronavirus pandemic hitting the sector in the closing months of the year, the association’s annual accounts show.

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Stonewater’s surplus nearly double in 2019/20 (picture: Getty)
Stonewater’s surplus nearly double in 2019/20 (picture: Getty)
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Midlands landlord nearly doubles surplus despite COVID-19 challenges #UKhousing

@StonewaterUK posts strong financial results despite pandemic disruption #UKhousing

“We face considerable challenges in the coming months and years and must continue to innovate, develop with new funding models and work with stakeholders to keep delivering affordable homes and investing in communities,” said @StonewaterUK boss #UKhousin

Stonewater noted that this increase was driven by two key factors, including a rise in surplus on disposal of fixed assets from £9.4m in 2018/19 to £28.2m in 2019/20.

“The increase in surplus on disposal of fixed assets is due to large sector sales that took place in 2019/20 and the Voluntary Right to Buy pilot scheme in the Midlands in which Stonewater participated,” said John Bruton, executive director of finance.

On top of this, in the previous financial year, Stonewater’s surplus of £22.38m was depressed by a paper loss of £10.7m due to the early termination of interest rate swaps.


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Overall operating costs increased slightly from £118.25m to £121.97m mainly due to impairment, additional bad debt provision and increased professional fees due to a stock condition survey of the planned maintenance programme, the association said.

Stonewater sold 181 shared ownership properties in the year, which was lower than its 203 target, due to delayed handovers.

Nicholas Harris, chief executive at Stonewater, said: “We are living in unprecedented times, with the impacts of coronavirus on economies worldwide and forecasts of a global recession. However, as a leading social housing provider, we entered the crisis in a position of relative financial strength.

“Like our peers in the sector, we face considerable challenges in the coming months and years and must continue to innovate, develop with new funding models and work with stakeholders to keep delivering affordable homes and investing in communities.”

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