News

Flagship Group has delivered an upbeat trading update for the nine-month period to December 2023. 

The east of England's largest social housing provider announced a turnover of £189m for the financial year to date, of which £137m (72%) is turnover from social housing, up from 65% in 2022/23.

Flagship's operating margin for the period (including asset disposals and gain on joint ventures) was 39% compared to 33% in 2022/23.

Other highlights include:

• Operating surplus of £74m compared to £64m in 2022/23;
• 465 new affordable homes delivered year to date compared to 353 in 2022/23;
• Arrears percentage remains steady year-on-year and void loss is at lowest point since before the pandemic;
• 60% of our homes are at EPC C or above;
• Social lettings interest cover increased to 244% from 231% in 2022/23; and
• Gearing continues to fall, down to 43% from 44% in 2022/23.

Flagship continues to track favourably against key financial performance metrics, delivering against its annual budget priorities as it heads toward the end of the financial year.

The group's purpose is to provide homes and create sustainable communities. Its five-year plan includes an investment of around £500 million in its existing homes, and plans for around 2,500 new affordable homes,

Jonathan McManus, Flagship's chief financial officer, said the results were testament to the group's robust finances, which enabled it to continue building new homes and improving existing homes, despite the economic challenges all registered providers are facing.

Mr McManus said: “Our performance continues to be underpinned by our focus on great people doing great things and spending money wisely and together with our sound leadership, delivers solid governance and robust financial viability.

“So far, this financial year, we’ve invested over £74m in our existing stock and more than £90m into building new homes. Our arrears have continued to reduce since 2021, despite cost-of-living pressure on our tenants.

"This is primarily due to our data-driven approach that empowers us to identify trends at an early stage, allowing us to offer a supportive response to those in arrears. Additionally, by proactively engaging with new tenants from the outset, we've been able to help them thrive in their tenancies.

We have our lowest level of voids since before the pandemic, and have confidence in our long-term investment plans, following the completion of our programme to enhance our stock condition survey position. We also believe that our tenant satisfaction scores are competitive against our peers.

“Our performance continues to be underpinned by our focus on great people doing great things and spending money wisely. Together our sound leadership delivers solid governance and robust financial viability.”

Flagship Group's chief financial officer Jonathan McManus.