News23.04.24by James RidingNotting Hill Genesis (NHG) will post a deficit for 2023-24 after identifying £110m in “exceptional” one-off costs.Patrick Franco, chief executive of Notting Hill Genesis (picture: NHG)SharelinesNotting Hill Genesis (NHG) will post a deficit for 2023-24 after identifying £110m in “exceptional” one-off costs #UKhousing The large London housing association issued a deficit warning in a statement to the stock exchange on Tuesday 23 April.
The charges “relate substantively” to recognition of building safety liabilities and asset impairments, it added.
NHG first warned in November 2023 that lower new home sales and increased repair, building and fire safety costs would impact on its operating surplus. That month, it reported a 79% fall in its half-year surplus from April to September 2023 to £18.3m, compared to £87m the year before.
The statement insisted that the group “remains financially strong” and was “committed to improvement in homes for our residents”.
Since November, it said, the landlord had “identified and investigated some one-off items”, which will result in a “material deterioration” in its full-year forecast. These provisions and write-offs amount to an “exceptional” charge of £110m, it said, “which will result in a full-year deficit”.
The statement insisted that the group “remains financially strong” and was “committed to improvement in homes for our residents”.NHG will provide a more detailed trading update for the year ended 31 March 2024 in June, ahead of its full year results.
A new chief financial officer, Mark Smith, joined the organisation this month.
In its last full-year results for 2022-23, the landlord booked a surplus of £106m, despite falling turnover from sales and a £6.9m building safety compensation payment to residents.
In the same year, NHG wrote down eight development schemes after factoring in lower sales prices due to the challenging economic environment.
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