REG - Guinness Partnership - Financial Statements 31 March 2024

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13/09/2024 11:15

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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/
(https://www.guinnesspartnership.com/about-us/company-publications/)

 The Guinness Partnership Group                                                   2023

                                                                        2024
 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)            18.3%

                                                                        17.6%
 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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