Flagship grows operating surplus amid increased delivery of affordable homes

In the first nine months of 2023-24, the social landlord invested more than £74m in its existing stock and more than £90m into building new homes.

In the same period, it delivered 465 new affordable homes, up from 353 in the same period in 2022-23, and now 60 per cent of its homes are at Energy Performance Certificate Band C or above.

Social lettings interest cover increased from 231 per cent in the first nine months of 2022-23, to 244 per cent in the nine months to 31 December 2023, while gearing fell from 44 to 43 per cent over the same period.

Flagship also grew its operating surplus and development in the first six months of 2023-24.

Jonathan McManus, chief financial officer at Flagship, said: “We continue to deliver strong financial performance in line with our budget and longer-term business plan. Our disciplined approach means that we can continue to invest in our properties and services to customers.

“Our performance continues to be underpinned by our focus on great people doing great things and spending money wisely and together with our sound leadership, delivers solid governance and robust financial viability.”

Flagship said in its financial results: “Our five-year plan includes c.£500m investment in our existing homes and c.2,500 new affordable homes, testament to our robust financial viability which enables us to continue building new homes and improving our existing homes despite the economic challenges all registered providers are facing.”

Flagship also reported that arrears percentage remains steady year-on-year and void loss is at its lowest point since before the pandemic.

“Our arrears have continued to reduce since 2021, despite cost of living pressure on our tenants,” said Mr McManus.

“This is primarily due to our data-driven approach that empowers us to identify trends at an early stage, allowing us to offer a supportive response to those in arrears.

“Additionally, by proactively engaging with new tenants from the outset, we’ve been able to help them thrive in their tenancies.

“We have our lowest level of voids since before the pandemic, and have confidence in our long-term investment plans, following the completion of our programme to enhance our stock condition survey position. We also believe that our tenant satisfaction scores are competitive against our peers.”

Update: at 9.05am, 22.02.24

The story was updated to state the results were unaudited.