Network Homes announces financial results for 2020/21
16 September 2021
We've published our financial results for 2020/21 which show we more than doubled our delivery of new homes compared to the previous year, demonstrating our strong commitment to increasing the number of homes for people in housing need.
During the year we delivered 620 new homes (2019/20: 302) and invested over £159 million in new development activity to start an additional 364 new homes. We also got approval for our largest ever planning application to build 1,600 homes on land acquired at Northwick Park Hospital in Brent, plus invested £14.9 million on maintaining and improving our existing homes.
We were subsequently awarded an allocation of over £122 million to deliver 1,000 new affordable homes in partnership with the Greater London Authority, as part of the London Affordable Homes Programme 2021-26. This brings our total approved development pipeline to 2,450 new homes.
The results show we achieved a net surplus of £41.7 million, (2019/20 £21.1 million) all of which will be reinvested to build new and maintain our existing homes. Total turnover increased by 20.1% to £247 million (2019/20: £205.7 million), and the net operating margin increased to 29.9% (2019/20: 25.8%). These results are largely down to the sale of 74 homes on the open market in the final phase of our landmark regeneration scheme at Stockwell Park in South London.
Network raised an additional £160 million during the year including a £150 million private placement from a small group of UK and North American investors. The private placement was launched with £100 million on the cover of the transaction but upsized to £150 million following strong demand from investors, demonstrating the confidence investors have in our business model and governance.
Building safety will remain a significant priority for our business in the coming years. We've set aside £116 million over five years to pay for building safety work –putting further pressure on resources required for improvements to existing homes or building new affordable homes. Our building safety team is coordinating investigations, interim safety solutions, and remedial work for around 50 buildings we own across 25 development sites and a number of other buildings where we are the leaseholder.
We affirmed our commitment to reducing our environmental footprint and providing current and future residents with sustainable homes by publishing our first Sustainability Strategy during the year.
The overall asset base rose to £2.1 billion and gearing decreased slightly to 51%, demonstrating our commitment to delivering on our strategic objective of increasing the number of homes for people in housing need.
I’m proud that Network Homes has delivered a strong set of financial results despite the unprecedented difficulties posed by the COVID-19 pandemic. While the circumstances have been very challenging, we have remained resilient and our commitment to providing safe, secure and affordable homes for as many people as possible is stronger than ever.Helen Evans, Chief Executive of Network Homes