Guinness Partnership (The) Limited Financial Statements 31 March 2024

RNS Number : 1410E

Guinness Partnership (The) Limited

13 September 2024

 

Publication of The Guinness Partnership Group's Financial Statements for the year ended 31st March 2024

Financial Statements are now available online: https://www.guinnesspartnership.com/about-us/company-publications/

The Guinness Partnership Group	2024	2023
Financial Metrics
Turnover	£459.8m	£540.3m
Operating Surplus	£77.9m	£98.5m
Surplus after tax	£81.0m	£46.4m
Operating margin (excl movement in fair value of investment property)	17.6%	18.3%
Operating margin - social housing lettings	18.9%	22.1%
Investment in existing homes	£178.8m	£177.2m
EBITDA-MRI interest cover	33.1%	107.8%
EBITDA interest cover	159%	238%
Total Reserves	£1,132m	£1,047m
Gearing (net debt as % of housing properties at cost)	42.9%	38.2%
Other Metrics
Homes managed	69,437	64,709
Homes under construction	3,563	4,113
New homes completed	608	814

 

The Group generated an overall surplus of £81.0m for the year ended 31 March 2024, an increase of £34.6m compared to prior year.

 

The increased surplus at Group level reflects the recognition of £63.0m being the fair value of the net assets relating to Shepherd's Bush Housing Association (SBHA) on the date that SBHA joined the Guinness Group in December 2023.

 

Group turnover reduced year on year as a result of a reduction in outright sales to £3.4m (2023: £126.3m, which included a bulk sale to a private investor), partly offset by an increase in rental income resulting from the inclusion of SBHA in Group results.

 

The Group's core activity remains the letting of social housing, with 87.7% of the Group's turnover being generated from this activity (2023: 66.1%). Our social housing lettings activity delivered an operating surplus of £76.1m and an associated operating margin of 18.9% (2023: £79.1m, 22.1%) for the year. The surplus generated by core social housing lettings has decreased by £3.0m to £76.1m (2023: £79.1m).

 

The underlying Group operating margin (excluding surplus from the disposal of housing properties, first tranche sales and outright sales) has fallen year-on-year to 9.6% (2023: 18.2%) due to increased repairs costs, impairment charges of £22.0m across properties under development for rent and sale, provisions totalling £26.9m for building safety remediation costs at two leasehold schemes in London owned by SBHA, and a £7.3m non cash pension cessation charge relating to our exit from defined benefit pension schemes in 2023. Impairment charges reflect a combination of increasing construction costs, lower sales values and delays to completion of schemes.

 

During the year we invested £178.8m in maintaining and improving residents' homes (2023: £177.2m).  The Group has 3,563 homes under construction, and 608 were completed in the year to 31 March 2024 (2023: 814). The Group has limited forward exposure to the private sales market with only 214 homes for outright sale currently on site. We have 1,393 shared-ownership homes currently on site which will be available for sale in future years.

 

 

All information has been extracted from the 2023/24 year-end financial statements.

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