London housing association announces £97m turnover increase

A London housing association firm has today announced an increase in turnover despite challenging conditions caused by coronavirus.

Peabody Capital reported that its total turnover for 2019/20 hit £662m, up nearly £100m from £565m in the previous year.

The group also generated a surplus of £122m in the period and invested £113m in existing homes and £313m in new homes.

During the year, it also acquired Town and Country Housing, which it said adds a “positive impact” to its margin.

Eamonn Hughes, chief financial officer, commented: “This is another strong financial performance for Peabody, as we continue to focus our resources to invest in our social purpose and deliver more for our residents and the communities we support.

“The surplus for the year of £122m has, as always, been reinvested in full so that the benefits will be returned back to our residents and their communities.

“We have demonstrated strong financial controls in absorbing the impact of the final year of rent reductions and additional spend on building safety.

“This has put us in a position to increase the investment in our existing homes by £29m in the year (£113m, 2019: £84m), and to continue to deliver new genuinely affordable homes. 80% of the new homes we built last year were affordable.

“We have invested £9m in community investment during the year, helped 1,100 people into jobs and apprenticeships and provided 78,300 hours of free and low-cost community activities.

“We retain strong interest cover, gearing and debt ratios and these provide a platform for us to best help those in need.

“Our strong financial position and liquidity mean that we are able to manage the impacts of Covid-19 and to continue our commitment to invest in developing new homes in the future.”