One of the UK’s largest housing and care providers, the Newcastle-based Home Group, says it is well prepared for future growth, despite a slight drop in annual turnover.
The organisation, which has 55,000 properties and provides care and support for 30,000 clients, generated an operating surplus of £62.1m from a turnover of £327m during the 2013/14 financial year. This compares to £329m and £66m in 2012/13.
During the period, it built 743 new homes and invested £105m on maintaining and improving housing stock.
Home Group, which is classed as a charity and social enterprise, also increased the funds it invested in new build and existing properties by 50%.
The year likewise saw it grow its operating margin from 19% to 23% through cost control and efficiency measures, while its regulator assessment improved, earning a V1G1 rating.
Throughout the period, the group diversified its care and support portfolio with new health contracts. A key national justice contract was also extended for a further two years.
Home Group provides general needs housing and supported housing services for vulnerable people. The business has confirmed it remains on course to deliver 7,000 new homes in its current development programme to 2019, by which point it estimates it will driven housing income from £248m to £300m. Throughout 2014/15, it intends to deliver 762 new homes.
Home Group chairman Bob Davies said: “This has been a robust performance by Home Group at a time when the wider economics of the sector have been under pressure.
“Welfare reform and changes to the way care and support services are commissioned and funded have presented significant challenge for the group on all fronts.
“The senior management, supported strongly by a talented and committed workforce, have ensured that Home Group has not lost ground and instead has further developed the strong foundation required to deliver strong growth in the future.
“Home Group remains committed to being one of the largest providers of new affordable homes – attested by our recent award of £42.3m grants by the HCA and GLA to deliver 1,976 additional properties between now and 2018 which forms part of our overall plans to deliver 7,000 new builds by 2019. Our ability to forge opportunities in new and developing care and support markets, particularly the increasing integration of health and social care, and exciting prospects in the criminal justice sector present enormous opportunity for growth over the coming years.”