Turnover and surplus above budget at Orbit but development falls short of target

The landlord focused on essential repairs, property improvements and decarbonisation initiatives, with 88.2% of its homes now at Energy Performance Certificate Band C or above.

Group turnover was £193.3m in the first six months of the financial year, up from £190.3m last year, and its operating surplus also rose from £48.3m to £48.4m. The trading update said there was “continued upward pressure on costs” and a “challenging macro-economic environment”.

It also said that despite a “more challenging property market”, Orbit’s forward sales activity “remains encouraging”.

Orbit’s net debt at the end of the six-month period was £1.73bn, which is up from £1.68bn at the same time last year.

The six-month update also highlighted Orbit’s focus on delivering its 2030 strategy, which aims to deliver “amongst the best customer experience of any housing association in the country”.

It has taken action over the first six months of the year to achieve this ambition, including rolling out a new neighbourhood and communities model, a new customer segmentation model to better understand customers’ diverse requirements and a later living strategy for how Orbit can support customers aged over 55 to remain in their homes for as long as possible.

Phil Andrew, Orbit’s chief executive, said the group that while the sector “continues to face pressure on costs across the board”, the group remains committed to investing in customers’ homes.

He said: “Our financial performance remains strong, and we are confident we continue to provide the strong and resilient foundation from which we can be a more consistently great social landlord for our customers.”

Jonathan Wallbank, the group’s finance director, said: “Orbit continues to hold a financially robust position, while balancing investment in its existing homes, building new affordable homes and working to enhance its customer experience and support.”