Network Homes produces strong financial results for 2018/19
16 September 2019
Network Homes has reported a net surplus of £72m for 2018/19, which represents the second highest surplus in its history.
Turnover increased by 17% to £275m and the operating margin increased by 5.2% to 35.3%. Reserves also increased by £63m to over £435m. The £72m net operating surplus is a large increase from the £44m reported in 2017/18. These increases were mainly due to the sale of Student First, a subsidiary of Network Homes, which provides student accommodation. The surplus will be fully reinvested into building more homes, maintaining existing homes and improving services for customers.
During the year Network Homes invested £250.3m in new development activity, completing 776 much needed new homes, of which 765 were affordable and 11 for outright sale, contributing to its ambitious development pipeline of 3,000 homes. The housing association is committed to starting over 1,750 homes in London by 2022 through its Strategic Partnership with the Greater London Authority and is also building new homes in Hertfordshire under Homes England’s Shared Ownership and Affordable Housing Programme. Network also invested £8.1m in maintaining and improving its existing homes.
During the year Network Homes finalised a £175m private placement with six United States and Canadian investors. This additional funding will be used to support its substantial development programme of 5,000 homes over five years.
Overall customer satisfaction continued to climb to 88.3%, getting close to Network’s five-year strategic objective of at least 90%. Network Homes also met its strategic objective of becoming a Sunday Times Best Company to work for, reaching 10th in the list of best housing sector organisations to work for and 39th overall best non-profit company.
Network Homes has performed well in the face of a continuing unpredictable political environment, ongoing Brexit uncertainties and a difficult property market, and I am proud of the results we have achieved this year. While these challenges are likely to remain on the horizon for some time to come, Network Homes is well placed to tackle them.Helen Evans, Chief Executive of Network Homes