31 Jul 2019 11:00
Publication of Annual Financial Statements 2019
A2Dominion Housing Group Ltd has today published its Annual Report & Accounts 2018/19, recording a turnover of £372.2m and a net surplus of £23.9m.
The 38,000-home Group had a higher net surplus of £92.5m in 2017/18 due to £40m of surplus from the completion of a joint venture development scheme in that year. The lower surplus also reflects the Group's significant new investment of £13.5m into fire safety, in addition to its homes maintenance programme of £32.9m (2018: £24.1m).
The full audited financial statements can be found in the following location:
https://www.a2dominiongroup.co.uk/about/reports-and-accounts
As one of the UK's top developing housing associations, A2Dominion built 875 much-needed high-quality new homes across London and southern England in the last year. Its completions included 113 for affordable rent, 88 shared ownership, 24 social rent, 354 private sale and 296 private rent.
The Group also continued to focus on improving and investing in its customer services, achieving a 90% satisfaction rating with its responsive repairs service (a 12% increase over the past three years) and invested £1.6m into community programmes and initiatives.
The organisation remains financially strong with an above peer average social housing margin of 37.2% and a newly-retained Fitch credit rating of A+, one of the highest in the sector.
Darrell Mercer, A2Dominion Group's Chief Executive, said: "Whilst our operating environment remains challenging due to the on-going economic and political uncertainty, the Group remains in a very strong position.
"We have started to build more new homes than ever before, with 1,800 homes started in the last year alone. We are also continuing to focus on serving the needs of our customers, achieving high satisfaction across many key areas."
Other achievements in 2018/19 included:
·; Forming a strategic partnership with the Greater London Authority to secure £85 million in funding, as part of the 2016-21 London Affordable Homes Programme
·; Raising a total of £465m of new finance to enable the Group to continue its growth and take on new development opportunities. This includes:
o £250m of revolving credit loan facilities with leading financial groups, HSBC, MUFG Bank, BNP Paribas and National Australia Bank;
o £215m - a forward starting bond issue; a forward starting private placement; a floating rate note; and participation in the MORhomes club issue.
·; Securing 650 plots of strategic land, with a total of 3,000 plots to ensure future supply and developing the Group's first-ever mixed tenure extra care scheme, Beechwood Grove in Reading
·; Launching the first phase of the Group's £23m business transformation programme, Fit for the Future, to become more responsive to customers' needs and expectations, whilst making the organisation more efficient and sustainable
·; Investing £1.6m into community programmes with over 3,500 customers benefitting from support services including financial and digital inclusion, health and wellbeing and employment and enterprise
·; Winning and retaining care and support contracts with a value of £1.3m to provide support and accommodation to vulnerable people, including those who are homeless, young parents and older residents
·; Recording best-ever income collection results.
Summary Financial Performance |
| |
GROUP STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE | 2019 £M | 2018 £M |
Turnover | 372.2 | 300.7 |
Cost of sales | (128.4) | (55.7) |
Operating costs | (190.2) | (158.2) |
Surplus on sale of fixed assets | 9.7 | 13.4 |
Operating surplus | 63.3 | 100.2 |
Operating margin | 17.0% | 33.3% |
Share of jointly controlled entity operating surplus | 2.5 | 41.2 |
Net interest charges | (52.5) | (53.7) |
Change in fair value of investments | 0.3 | - |
Movement in fair value of financial instruments | 2.7 | 13.2 |
Movement in fair value of investment properties | 9.2 | 1.6 |
Taxation | (0.3) | 1.1 |
Non-controlling interest | (1.3) | (1.1) |
Net surplus for the year | 23.9 | 92.5 |
GROUP STATEMENT OF FINANCIAL POSITION | 2019 £M | 2018 £M |
Tangible fixed assets and investments | 3,408.8 | 3,174.6 |
Current assets | 509.4 | 568.2 |
Creditors including loans and borrowings | (1,883.4) | (1,795.5) |
Deferred capital grant | (1089.4) | (1,008.0) |
Non-controlling interest | (1.4) | (1.2) |
Total reserves | 944.0 | 938.1 |
A copy of the Annual Financial Statements has also been submitted to the National Storage Mechanism and will shortly be available for inspection:
http://www.morningstar.co.uk/uk/NSM
For further information, please contact:
Ellie Lodge
A2Dominion Housing Group
The Point
37 North Wharf Road
London W2 1BD
Tel: 020 8825 1000
Email: ellie.lodge@a2dominion.co.uk
A2dominion 28 (54XE)