Clarion Funding plc

31 July 2023

CLARION REPORTS RESILIENT PERFOMANCE AS INVESTMENT IN EXISTING HOMES EXCEEDS £1M A DAY

Clarion Housing Group has today published its Annual Report and Accounts for the financial year 2022/23, showing increased expenditure and investment in its homes compared to the prior year, despite the challenging economic background.

£397 million was spent by the Group on maintaining and improving its homes, compared to £364 million in the prior year. In addition, it built 2,032 new homes - 78% of which were for affordable tenures.

The Group reported a turnover of £1,008 million (2021/22: £1,059 million), and a surplus of £97 million (2021/22: £186 million).

The 5% reduction in turnover was driven by lower development sales, which was partially offset by an increase in the Group's core social housing rental income.

The surplus was impacted by a number of one-off costs during the course of the year, including £45 million linked to a debt portfolio rationalisation project which strengthens the Group's credit position. Excluding all one-off costs, the underlying net surplus was £185 million (2021/22: £206 million) - representing a strong performance in the current operating environment. Excluding one-off costs from both the current and prior year, operating margin has been maintained at a solid 30%.

The Group's annual report also highlights the work it has undertaken during the year to tackle condensation, damp and mould in residents' homes, as well as the strides it has made in its energy efficiency retrofit programme. This includes a commitment to invest £108 million to upgrade the energy efficiency of some of its hardest to heat homes, supported with £49 million of social housing decarbonisation grant funding.

Mark Hattersley, Chief Financial Officer at Clarion Housing Group, said:

 "We are pleased to report a robust set of results where all our surplus is retained within the business for reinvestment in our homes and communities. Despite the many pressures we are facing, responsible financial management has enabled us to increase our expenditure and investment in our existing homes and maintain the supply of new homes which are so desperately needed. Our resilient financial position will ensure that we can continue to deliver for those who matter most, our residents."

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For more information, contact Lucy Pond, senior communications manager: [email protected]