A2Dominion completes 1,127 new homes and records £114.5m surplus
A2Dominion completed 1,127 new homes last year and achieved a record surplus of £114.5m, according to its latest annual accounts published today.
The increased number of completions includes 331 for affordable rent, 330 for private sale, 268 for private rent and 198 for shared ownership.
It also achieved its highest-ever surplus for the fourth year running, with a £41.1m increase on its 2014/15 surplus of £73.2m.
The Group now manages more than 36,000 homes in London and the South East and plans to develop a further 4,500 by 2020.
With an increased turnover of £378.4m (up 21%) and an operating margin of 29.9% (up 2.2%), the Group acquired sites to deliver almost 1,000 new homes, supporting its goal to significantly increase the number of homes it owns and manages.
The Group has made its record-breaking surplus from:
- diversifying its commercial activities and delivering more homes for private sale and private rent;
- movements in the value of its investment portfolios (£30.1m);
- improving its sales margins (up by 6.6%) and generating a £39.7m sales surplus;
- reducing its geographical area of operation;
- continuing to strengthen its income management; and
- making efficiency savings of over £2.7m.
The Group reinvests 80 per cent of its cash surpluses into providing more rented homes and uses 20 per cent to help improve services and support local communities.
Other highlights from the Group’s Annual Report & Accounts 2015/16 include:
- Strengthening the business
- retaining G1/V1 status, the highest rating by the Homes and Communities Agency, following an In-Depth Assessment in December 2015
- raising £100m in new banking facilities
- retaining an A+ credit rating by Fitch Ratings
- Providing new homes
- committing £591.8m towards the development of 3,856 new homes, 86 per cent of its 4,500 new homes target
- acquiring new sites with the potential to deliver 983 new homes
- Delivering customer-led services
- achieving high satisfaction with its customer service centre – 82%
- securing an additional £4.7m in housing benefit and other payments to support customers
- Investing in homes
- investing £37.8m into improving over 5,000 properties.
A2Dominion’s Group Chief Executive, Darrell Mercer, said:
“We’re delighted to have completed so many new homes in 2015/16 and to have achieved such strong operational and financial performance.
“We are now focused on increasing the number of new homes we provide and are hoping to complete a further 4,500 by 2020.”
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Notes to Editors
A2Dominion is a residential property group with 36,000 homes across London and the South East, and thousands more in the development pipeline.
The Group provides affordable, private and social rented homes, student, key worker and temporary accommodation, as well as supported and sheltered housing.
It also offers high-quality sustainable homes for sale and shared ownership, available through its FABRICA by A2Dominion brand.
The Group has a unique approach to housebuilding, generating profits for a social purpose instead of for shareholders, with millions of pounds reinvested each year into building much-needed affordable homes and supporting local communities.
A2Dominion is part of the G15, a group of the largest housing providers in London.