LONDON - The Guinness Partnership, a UK-based affordable housing provider, has announced its interim financial results for the six months ending September 30, 2024. The unaudited report highlights a turnover of $261 million, up from $224 million in the same period of the previous year, and significant investments in housing development and maintenance.
The organization completed 567 new homes, including 497 affordable units, and began construction on 347 additional properties. Despite challenges in the construction sector and broader economic pressures, the Guinness Partnership has maintained its commitment to developing new housing.
The group's operating surplus reached $55.1 million, a slight decrease from the previous year's $50.0 million, with an overall surplus of $16.4 million, down from $20.6 million. The operating margin also saw a decrease to 18.9% from 21.2%. The group's liquidity remains robust, with $915 million available, including cash and undrawn loan facilities.
Tenant arrears have been reduced to 3.97% for TGPL and 4.02% for SBHA, indicating effective debt management strategies. The Guinness Partnership is also in the process of exiting regulated care activities, which is expected to enhance the operating surplus by $1.2 million on an annualized basis.
The integration of Shepherd's Bush Housing Association into the group is progressing, with a full transfer of engagement targeted for April 1, 2025. The Guinness Partnership has retained its A3/Stable credit rating from Moody's (NYSE:MCO) as of November 6, 2024.
The report also outlines the group's building safety program, which is in line with the Building Safety Act 2022. Compliance performance remains strong, with high levels of adherence to safety assessments and testing across various categories.
While the Guinness Partnership has faced some setbacks due to economic factors and the construction sector's instability, the group's financial resilience and continued investment in its core services and housing development have been emphasized in the report.
The information in this article is based on a press release statement from The Guinness Partnership.
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