Managing our money and performance
This year we achieved a net surplus of £21.1m, all of which we'll reinvest into new and existing affordable homes. Turnover decreased by 25% to £205.7m and the operating margin decreased by 10% to 25.8%. Reserves increased by £31m to over £466m. These results are reflective of our increased spending on building safety and 2018/19’s exceptional results, which were largely due to the sale of a block of student accommodation by Student First, a Network subsidiary.
The Regulator for Social Housing carried out its periodic In-Depth Assessment for Network Homes during the year, and we retained the top G1 rating for governance and the V2 rating for viability. This means Network Homes fully meets the Regulator’s requirement for governance and meets the requirement for financial viability. It demonstrates we have the financial capacity to deal with a range of scenarios, while being able to take on the risk associated with building thousands more homes.
Turnover decreased by 25% to
£205.7m
Operating margin decreased by 10% to
25.8%
Reserves increased by £31m to over
£466m
£234.3m
invested in new homes
£16.3m
invested in existing properties
*Other social income includes fees from agency contracts, supporting people contracts and sale of shared ownership properties. + Non-social income includes rent from commercial properties, rent from student accommodation properties, and market sale properties.
Value for money
We are always monitoring our services to make sure we’re delivering value for money. We benchmark our services using HouseMark, a membership-based organisation which seeks to help the social housing sector improve performance and achieve value for money.
As a housing association we are required by the Regulator of Social Housing to publish a Value for Money (VFM) statement annually, which sets out how the organisation approached value for money.
You can read our latest Value for Money Statement 2019/20 here!
What happens when we don’t meet our targets?
We believe that we can always do better and strive to do so across all of our activities. One of the ways we drive this is by setting ourselves stretching targets. Where we meet or almost meet these in a year our Board will usually look to increase them in the following year. Where targets are missed the previous year’s target is normally maintained.
Our Executive Leadership Team, Board and appropriate committees, review our performance information on an ongoing basis and provide challenge and support to enable improvement and sustain performance. Individual teams and service areas are held accountable for their performance and supported to improve. Where performance is not at the level we expect, we put action plans in place to address the issues.