ORBIT CAPITAL PLC RNS
Orbit Capital PLC maintains robust performance for the year
ending 31 March 2024
Publication of Financial Statements
18
September 2024
Orbit Capital PLC ('Orbit Group',
'Orbit' or the 'Company'), one of the UK's largest providers of
affordable housing, has maintained its robust financial performance
for the year ending 31 March 2024, setting us up well to deliver
our 2030 Strategy, which sets out our ambitions for the next six years, including significantly
investing in our customer journey and building and regenerating
over 5,700 homes.
Highlights
·
Group turnover in
line with budget at £391.1 million (FY2023: £418.3 million)
·
Operating surplus
excluding fixed asset sales at £88.7 million
reflecting additional investment into repairs and
maintenance as we continue to focus on the quality of our homes
(FY2023: £105.1 million)
·
Group operating
margin excluding fixed asset sales
at 22.7% (FY2023: 25.1%)
·
Revenue reserves
increased to £961 million (FY2023:
£911 million) underpinning a strong balance sheet
position
·
Overall surplus
achieved for the year of £54.9 million reflecting reduced fixed asset sales and higher interest
(FY2023 £89.6 million)
·
Reaffirmed A3 stable credit rating by
Moody's
·
Reaffirmed G1/V2
rating by the Regulator of Social Housing
Strategic Progress
Despite macro-economic instability
with inflation above the Bank of England's target, we have retained
our robust financial position. Group turnover was £391.1 million
broadly in line with expectation, whilst our operating margin was
22.7% reflecting inflationary cost pressures as experienced by the
wider sector, together with increased levels of investment our
homes and slightly reduced property sales margins reflecting the
rising cost to build.
We invested £119.4 million (FY2023
£88.8 million) in improving and maintaining our existing homes for
our customers and, against a backdrop of continued high interest
rates maintaining pressure on the property market, we have been
able to continue our commitment to providing new homes to meet
housing need, delivering 870 new homes.
In addition, we continued to support
our Better Days programme, under which our commitment to social
purpose goes beyond that of landlord and developer, and works to
improve the long-term prospects of our customers through financial
inclusion, mental health, employment, skills, and digital
support.
Other Achievements:
·
New 2030
Strategy developed with colleagues
and customers, setting out the ambition to deliver amongst the best
customer service of any housing association in the
country
·
Customer
Commitments launched, reflecting
what customers value from us and what we must deliver in return,
which will shape all future improvements from service design and
quality frameworks to policies and performance measures
·
Ongoing excellence in Risk and Compliance, and Health and
Safety with RoSPA
Gold Award for the sixth consecutive
year
·
£119.4 million
invested in improving and maintaining our existing
homes with 85.55% of our properties
now at EPC band C or above.
·
£232.2 million
invested in developing new homes, with 870 new homes built
·
£22.4 million
social value delivered
·
Awarded 5-Star
Housebuilder by the Home Builders Federation
·
Second
Sustainability-linked loan to fund
our drive to deliver more affordable new homes and improvements to
the energy efficiency of our existing properties
·
Carbon footprint
reduction of 39.7% since baseline established in 2018.
·
Energy efficiency
upgrades completed on 141 properties
in the West Midlands under the Social Housing Decarbonisation Fund
(SHDF) Wave 1, and SHDF Wave 2.1 work underway to upgrade a further
212 properties, 60 of which are already complete.
·
New Values and
Colleague Commitments developed for
colleagues, by colleagues, which focus on delivering what our
customers value
Commenting on the results Jonathan
Wallbank, Group Finance Director, said:
"In this challenging economic
environment our financial delivery has remained solid.
"We have delivered well against the
Orbit 2025 Strategy, continuing our journey to improve our customer
services and our drive to deliver more high-quality, affordable new
homes.
"Our net assets have increased as a
result of investment in our existing homes and through new social
and shared ownership homes being built. Revenue reserves remain
strong, and we continue to be financially well-placed with a strong
financial liquidity position, with our financial strength setting
us up well to deliver our 2030 Strategy."
Phil Andrew, Orbit Group Chief Executive
added:
"Our new Strategy sets out our
ambition to provide amongst the best customer experience of any
housing association in the country. This is an ambitious goal but
one we strongly believe is right for our customers and colleagues,
and one that is within our grasp.
"We will therefore be moving forward
with a sharpened operational focus that is resolute in delivering
our services and homes through the lens of our customers, and which
supports us in further increasing the positive impact we can make
now and in the future.
"This will see us significantly
investing in our customer journey to improve our customer
experience and ensure we deliver the services our customers value
the most, and continuing to focus on improving the quality of our
existing homes whilst maintaining our commitment to build more
high-quality, affordable homes that meet
the needs of our customers throughout
their lives.
"As ever, our people are key to this
and we will continue to invest in our people and culture, ensuring
we have the right skills, tools, and commitment to meet the
professionalism standards set out by the sector, and most
importantly, deliver our purpose.
"We have a lot to do. But with the
combination of committed colleagues who have a passionate belief in
our purpose, a clear vision and Strategy, and a strong and
resilient financial plan, we are well placed for
success."
ENDS
For further information please
contact: Lisa Astle, Director of Communications and Brand,
Lisa.astle@orbit.org.uk
/ 07775 633957