GenFinance II PLC Final Results For Year Ended 31 March 2018 (3875W)

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RNS Number : 3875W

GenFinance II PLC

31 July 2018

NOTTING HILL GENESIS

FINANCIAL RESULTS FOR YEAR ENDED 31 MARCH 2018

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 GBP96.9m and Genesis Housing Association GBP19.8m.

Notting Hill Housing Group

The surplus of GBP96.9m improved on the budgeted surplus positon of GBP88.0m. The annual surplus has reduced compared with the record GBP142m 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 GBP412m in 2017 to GBP371m 2018 due to reduced shared ownership 1(st) 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 GBP576m in new housing supply in London during the year to March 2018 up from GBP373m 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 GBP19.8m, improved from the GBP18.2m achieved in 2017. The budgeted surplus was GBP31.8m, however Genesis absorbed both an impairment charge of GBP17.5m and merger costs of GBP18.6m, including GBP16.0m 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 GBP42.8m, up from GBP27.1m, caused by strong staircasing activity and stock rationalisation.

Genesis invested over GBP135m in new housing supply in the year slightly down on GBP149m in 2017. The development pipeline is over 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 at the same time as 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 GBP20m per year following integration and will increase delivery of new homes by approximately 400 units per year than we could do separately"

The Notting Hill Housing Group Financial Statements and Genesis Housing Association Financial Statements are available on our website.

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July 31, 2018 13:14 ET (17:14 GMT)