Notting Hill Genesis has published their final financial statements for the legacy entities, Notting Hill Housing Group and Genesis Housing Association for the year ended 31 March 2018. Notting Hill Housing Group has recorded a surplus of £96.9m and Genesis Housing Association £19.8m.
Notting Hill Housing Group
The surplus of £96.9m improved on the budgeted surplus positon of £88.0m. The annual surplus has reduced compared with the record £142m in 2017, which was flattered by large private sale, staircasing surpluses and increases in the value of investment properties not repeated in 2018. Turnover has reduced from £412m in 2017 to £371m 2018 due to reduced shared ownership first tranche sales driven by the timing of our development programme. Our operating costs have increased due to one-off merger related costs.
The Notting Hill Housing Group has invested more than £576m in new housing supply in London during the year to March 2018, up from £373m in 2017. Our development pipeline is forecast to deliver over 10,000 homes within the Greater London Area.
Genesis Housing Association
Genesis achieved a surplus of £19.8m, improved from the £18.2m achieved in 2017. The budgeted surplus was £31.8m, however Genesis absorbed both an impairment charge of £17.5m and merger costs of £18.6m, including £16.0m in respect of loan restructuring. Turnover and operating surplus excluding the impairment charge increased due to stronger outright sales activity. There was a surplus on sale of properties of £42.8m, up from £27.1m, caused by strong staircasing activity and stock rationalisation.
Genesis invested more than £135m in new housing supply in the year, slightly down on £149m in 2017. The development pipeline will provide 1,850 homes.
Group Finance Director Paul Phillips said, "We are satisfied with the latest performance. Our financial strength is one of our key strategic themes now and in the future of Notting Hill Genesis. It is crucial to the stability of the organisation and will support the continued development of new affordable homes for London and the South East while at the same time reducing our reliance on Government subsidy.
“Achieving solid results gives our customers, investors and other stakeholders confidence in our ability not only to withstand the changes to our operating environment but also to continue to deliver homes for a range of needs across London and the South East. The newly formed Notting Hill Genesis will deliver efficiency savings of £20m per year following integration and will increase delivery of new homes by approximately 400 more units per year than we could do separately”