Accent Group grows surplus despite record investment in existing homes and higher completions

Total income from the sale of new properties grew by £4.6m to £9.9m and supported the underlying performance of the business with a surplus of £2.1m.

Turnover increased by £11.4m to £126.7m, with a headline operating margin of 25.8 per cent as a result of the continued development programme and rental uplift.

Total comprehensive income for the year fell by £1.8m to £25.8m, resulting from a lower actuarial gain on pension schemes in 2023-24 than in the previous year.

Despite the £24m surplus, Accent Group completed 431 new homes in 2023-24, its highest number for at least 10 years “in an environment which is still providing new challenges across the sector”, it said. This was a rise from 221 in the previous year.

Accent’s approved development pipeline is currently just over 1,200 homes, with 834 of these in contract and over 90 per cent land-led. The housing association said it will deliver 438 low-cost affordable homes in 2024-25 “in areas of strong housing need” and that it planned to deliver around 3,150 new homes before 2031.

The landlord also made a record investment of £52.3m in its existing homes in 2023-24. This was across all planned, capital and major works and some cyclical works.

In addition, during the year, the group invested £40m in existing properties, including planned, major repairs and capital works, but not cyclical or routine maintenance. This was up from £20.9m in 2022-23.

This included £26.1m of capital reinvestment works, a rise of £12.5m, as a result of accelerated capital work. The housing association also said that it invested £1.4m in new insulation and other sustainability works to improve the thermal insulation of homes.

Sarah Ireland, interim chief executive of Accent, said: “Following another year of volatility and challenge for the housing sector, we are proud to have delivered on our commitments to our customers, both existing and new, having invested more than £25m in improvement works to our homes and delivered 431 new homes in the 12 months to 31 March 2024.

“To deliver this and remain financially resilient in an uncertain economic climate is a considerable achievement.

“As we look forward to the new financial year and work towards our priorities as set out in our 2024-27 corporate strategy, building on strong foundations, we feel better placed than ever to navigate the future and support the ongoing housing crisis in the UK.”

Elsewhere, gearing remained at the same level of 39.3 per cent. Accent said liquidity remained “strong”, with cash at bank and liquid assets totalling £136.8m at the end of the year.