NEWCASTLE UPON TYNE - Karbon Homes Group (KHG) has released its unaudited trading update for the six months ending September 30, 2024, revealing a turnover of $108.0 million, up from $98.0 million in the same period last year. The operating surplus, including asset sales, reached $27.2 million compared to $26.3 million in 2023.
The company, which manages 33,645 homes, reported an operating margin of 26.4%, slightly down from 26.8% last year. Excluding asset sales, the margin was 25.4%, an improvement from the previous year's 25.0%. However, the surplus before tax decreased to $16.9 million from $21.9 million in 2023, reflecting a goodwill adjustment related to the acquisition of Leazes Homes.
Scott Martin, Executive Director of Resources at KHG, expressed satisfaction with the results, emphasizing the company's commitment to providing quality homes, excellent customer service, and sustainable community development despite the challenging operational and economic environment.
The group added 255 new homes since September 2023, falling slightly behind targets, which affected both capital expenditure and income. KHG also partnered with local housebuilder Homes by Carlton on two market sale sites in County Durham, sharing commercial risks and benefiting from the housebuilder's expertise.
In terms of customer satisfaction, Karbon Homes is in the top quartile among its peers, with 84.3% of tenants expressing overall satisfaction. The company has also increased capital investment in existing homes to over $37.2 million this year, with a significant portion of customers satisfied with the maintenance of their homes.
The report also highlighted Karbon's role as a major landlord in the North East and Yorkshire, with investments in Stanley, Byker, and Gateshead, where a development of 121 flats is set to be replaced with new housing.
Looking ahead, KHG is considering establishing a for-profit housing association to attract external investment and deliver more social housing. The company also released its third annual Environmental, Social, and Governance (ESG) Report, detailing its impact across these areas.
Karbon Homes will host its annual investor update in early January 2025 to discuss full-year results and future challenges and opportunities. This update is based on a press release statement.
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