Hyde Group reports 78% drop in surplus
Hyde Group has built just 57% of the homes it originally targeted in 2023/24 as it was forced to write-down 拢39m due to contractor insolvencies on two schemes.
The 44,000-home association, in its financial statement for the year to 31 March, said it completed 630 homes in 2023/24. This was in line with last year鈥檚 figure of 625, but down against its original target of 1,105.
The group said the completions figure was lower than target as it 鈥減roactively managed鈥� its development pipeline to reduce its exposure to build and sales risk.
It started 823 homes, down on the 2,105 posted last year. The housing association said it still has an aim of delivering an average of between 1,500 and 2,000 homes each year. It said it intends to complete 4,760 homes between 2024 and 2028, with three quarters of them for affordable tenures.
The group also posted a big drop in its surplus for the year. Its total surplus was 拢26m, down on the 拢117.5m posted last year.
The group said this was due to net impairments and write-downs totalling 拢37.6m this year, set against 拢57.2m of net gains from swap valuations and loan breakage costs the previous year.
In total, the group recognised 拢39.4m of impairment charges. It said this related to contractor insolvencies on two schemes under construction, along with scheme re-appraisals and a change of intended use.
It said: 鈥淎n assessment was undertaken to review works costs under the original contract and those costs that will require re-work under the new contract. These were determined to be sub-optimal and were impaired.鈥� Hyde also said the two schemes were re-appraised prior to a design and build contract being entered, while one scheme had a change of intended use relating to 76 homes.
Hyde Group鈥檚 turnover for the year fell from 拢363m to 拢350.9m.
The group鈥檚 operating margin was 7.3% against a target of 15.8%. However, Hyde said that excluding impairment, this figure would have been 18.1%.
Hyde invested 拢109.2m on maintaining, repairing and improving existing homes, up from 拢94.3m the previous year.
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