2016/17 financial results

Last updated - 6 November 2017

Genesis delivers solid surplus and key customer service improvements against a challenging backdrop
One of the UK's leading social housing providers generated a pre-tax surplus of £25m (£22.5m in 2015/16) and maintained its commitment to substantial investment in its existing stock, repairs service and improving customer service in the financial year, despite reductions in social housing income.

Genesis Housing Association, which owns or manages over 32,000 properties in London and the South East, announced the surplus and a turnover of £264.3m for 2016/17 at its AGM yesterday evening (Tuesday). Its operating margin also improved from 17.3 per cent to 19.9 per cent year on year, as a result of work to improve void losses, control direct costs and make the temporary housing arm of the business more profitable. Debt was reduced by £70m.

The figures highlight expenditure of £50m on repairs and maintenance of existing assets, up from £47.2m in the previous financial year, as part of Genesis’ sustained focus on investing in bringing its homes above the ‘decent homes’ standard and driving improvements to the customer experience. Partly as a result of this investment, customer satisfaction with the repairs service reached a three-year high of 79.9 per cent, up from 73.6 per cent in 2016.

Genesis completed 195 properties across a range of tenures during the year (314 in 2015/16). While this is a lower annual figure than average, the year ended with 1,383 homes under construction, 1,128 of which will be completed by April 2019.

Genesis has a strong pipeline of homes being delivered across its footprint in London and the South East, a large proportion of which will be delivered at Grahame Park in Barnet and at Oaklands, the first development to be brought forward on the Old Oak Common regeneration site in west London.

It will be investing over £1bn over the next three years in completing over 2,300 mixed tenure homes and starting on site with an additional 1,622.

an infographic of numbers from the report

Other highlights from the publication of the Annual Review and Financial Statements include:

  • Gearing of 42 per cent, compared with 44 per cent in 2016.
  • A £7.4bn desktop open market valuation of owned housing stock (£7.2bn in 2016).
  • £306.3m in available liquidity, compared with £389m in 2016.
  • Social and economic initiatives realised a Housing Associations’ Charitable Trust (HACT) social value of £4.1m (£3.7m in 2015/16), making a significant contribution to improving wellbeing in the communities Genesis serves.
  • Over 9,000 downloads since its launch of the Genesis app, a key cornerstone of Genesis’ ambition to be a new style provider for the digital age. The app now has added functionality for residents to make direct payments.
  • 809 volunteering placements created for residents, up from 476 in 2016.
  • 44 apprenticeship roles in place (up from 41 in 2016).
  • A customer satisfaction rate of 80.8 per cent among care and support service users.

Elizabeth Froude, Deputy Chief Executive and Executive Director of Resources at Genesis Housing Association, said: “These results demonstrate that Genesis has continued to thrive and innovate in a challenging operating environment.

“Despite contracting income we have continued to invest in our homes, maintained tight control of overhead and management costs and met ambitious targets for our social value activity across the business. Sustained efforts to improve customer satisfaction have paid off, and we are committed to keeping our residents front and centre as we continue to shape and enhance the services we deliver to them.

“While the number of homes completed in the financial year is lower than usual, we have a strong pipeline and exciting schemes coming forward over the next few years, of which will comprise a significant proportion of affordable and social rent properties. We are also keeping up momentum with the investment in our existing properties, many of which are older than other housing associations owing to the stock profile of our core areas. We are determined to make sure our stock provides great homes for our valued customers.”

Neil Hadden, Chief Executive at Genesis, concludes: “Genesis has fared well in what continues to be challenging market conditions for housing associations as the sector faces annual rent reductions, diminished funding opportunities and the uncertain impact of Brexit.

“We have navigated this difficult external landscape well while continuing to invest in new and existing homes and service delivery, leaving us in a strong position for our proposed merger with Notting Hill Housing. This new partnership brings together two like-minded associations with significant shared history and will enhance both organisations’ future outlook and capacity to deliver much-needed new homes.”

Read our annual report and financial statements