Notting Hill Genesis Annual Financial Report (2246J)

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RNS Number : 2246J

Notting Hill Genesis

20 August 2021

RNS

New reports show solid financial performance and commitment to sustainability

Notting Hill Genesis (NHG) has reported a surplus of GBP144.7 million for the 2020/21 financial year in its annual report and financial statements published today, Friday 20 August 2021.

To complement the financial statements, we have also published our first environmental, social and governance (ESG) report, setting out how we are performing against ESG measures in line with the sustainability reporting standard for social housing published in November 2020.

Both documents are available on our website at www.nhg.org.uk/investors and www.nhg.org.uk/sustainability .

As in previous years, the surplus will be used to invest in our existing homes as well as continuing our programme to build more new homes across London. In 2020/21, we completed 1,342 new homes. Our long-term investment in existing homes will include an estimated GBP173 million of net costs to address building safety issues, a significant challenge for many housing associations and developers.

This year's surplus is GBP46.6 million higher than that achieved in 2019/20 and well above the approved target for 2020/21 of GBP101.2 million. This is largely due to sales-related activity, including the disposal of site at Canada Water in east London for GBP140 million.

Overall turnover increased to GBP909.1 million compared to GBP731.5 million in 2019/20, mainly because of a GBP151.6 million increase in sales revenue to GBP332.9 million for 2020/21. Non-sales turnover also increased to GBP567.8 million compared to GBP550.2 million the previous year, as did operating costs, which rose from GBP418.2 million in 2019/20 to GBP433.3 million. That rise is largely attributable to higher general needs service charges and management costs.

Chief financial officer Paul Phillips said: "Once again, our annual results show Notting Hill Genesis to be a financially sound organisation with substantial liquidity. This has been a difficult year as we've sought to support residents and our own people through the uncertainty of the pandemic and to address significant challenges associated with building safety.

"Nevertheless, the results give our customers, investors and other stakeholders confidence in our ability not only to withstand challenges within the housing sector but also to continue to deliver homes for a range of needs across the capital. Our first ESG report additionally demonstrates our commitment to issues beyond financial strength, which are increasingly important to a range of stakeholders."

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August 20, 2021 09:16 ET (13:16 GMT)