Notting Hill Housing Group has recorded a record surplus of £125m in the same year as increasing housing supply in London by 1,170 homes, bringing the total number of homes owned or managed to nearly 32,000.
Notting Hill Housing Group (NHHG) will use its record surplus of £125m as reported in its annual result published today (22 July 2016) to continue its programme of creating thousands more homes across London.
The results show the annual surplus increased by more than £10m compared with £115m (restated*) in the previous year. Turnover has increased from £403m (restated) to £415m and our operating costs per home have decreased from £4,150 per unit to £3,273 per unit.
The Group has invested more than £314m in new housing supply in London during the year to March 2016. Our development pipeline is forecast to deliver nearly 7,000 homes within the Greater London Area within the next five years.
Group Finance Director Paul Phillips said, "We are delighted with our latest performance. Our financial strength is one of our key strategic themes and it is crucial to the continued development of new affordable homes for Londoners at the same time as reducing our reliance on Government subsidy.”
Our strong performance is driven by:
- Increase in turnover from £403m in 2015 to £415m
- Surpluses on sales of fixed assets, primarily shared ownership customers buying more shares in their properties
These gains are offset by increased interest costs due to additional borrowings to fund new homes and an increase in the SHPS pension past-service deficit contribution.
Paul Phillips continued: “Achieving such strong 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.”
* The figures for 2014/15 have been restated to enable an accurate comparison with this year’s figures, which have been presented for the first time under Financial Reporting Standard (FRS) 102. FRS 102 introduces new accounting rules, and moves reporting to a framework based more on standardised, international rules for accounting periods starting on or after 1 January 2015.
The full Financial Statements are available on our website.