Firm says final accounts will be hit by 拢20m building safety provision
Housing association giant Clarion has increased its annual completions by 12%, the firm said in a trading update this morning.
It completed 1,727 homes in the year to 31 March, up from 1,538 for the previous 12 months, but missed its original target of building 1,828 homes, finishing nearly 6% below its planned figure.
In common with other large London housing associations, Clarion reduced its development target for the year because of building costs and other financial constraints.
It had cut its annual target from 2,161 in 2023/24 to 1,828 in 2024/25 but last year said it retains an ambition to build 3,000 homes annually in the longer term.
The group鈥檚 future homes pipeline stands at 20,173, up from 19,694 a year ago.
The update said: 鈥淭here remains a chronic shortage of affordable housing in England. We retain a longer-term ambition to raise this level of delivery but will continue to deliver our pipeline at a pace that allows us to maintain a resilient financial profile.鈥�
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Clarion鈥檚 spend on new homes fell from 拢501m to 拢439m year-on-year, which it attributed to delays to starts on some of its larger schemes, while its spend on existing homes fell 5% to 拢123m.
The 125,000-home group鈥檚 turnover increased 9% from 拢993m to 拢1.1bn while its operating surplus, which excludes one-off items, rose from 拢171m to 拢195m.
But Clarion said that while its underlying operating performance has been strong it is reviewing building safety costs and anticipates including a provision of around 拢20m in its final accounts that will impact on its overall surplus.
It added: 鈥淲e are however continuing to seek recovery of these costs from third parties where appropriate.鈥�
Clarion鈥檚 audited financial accounts will be published this summer.
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