Guinness Partnership - Financial Statements for year ended 31 March 2025

Publication of The Guinness Partnership Group's Financial Statements for the year ended 31 March 2025

Financial Statements are now available online: https://www.guinnesspartnership.com/about-us/company-publications/

Group Highlights

·      Completed Transfer of Engagements from Shepherds Bush Housing Association into The Guinness Partnership Limited on 27 March 2025, simplifying our group structure and enabling systems integration and other efficiencies.

·      Completed exit of loss making regulated care services in December 2024.

·      Invested £206.3m in maintaining and improving existing homes.

·      Invested £197m in new homes, with 699 new homes completed (629 for social and affordable housing) and 347 homes starting on site.

The Group's core activity is the letting of social housing, with 85.4% of the Group's turnover being generated from this activity (2024: 87.7%). Social housing lettings activity delivered an operating surplus of £68.7m (2024: £73.6m) and an associated operating margin of 15.0% (2024:18.3%).

The Group is reporting an overall loss of £10.8m for the year ended 31 March 2025 on Turnover of £534.7m. Group financial performance has been adversely impacted by impairment charges of £21.4m, reflecting a combination of lower sales values and increasing construction costs, and delays to completion of schemes (including where the original contractor has entered administration). In addition, building safety costs and future obligations recognised in the income statement amount to £37.3m. Net financing charges increased to £81.8m (2024: £65.0m), reflecting additional borrowing to support our new homes programme and increases in interest rates. The deterioration in surplus and margin also reflects the early years impact of the merger with Shepherds Bush HA, with the then subsidiary reporting a loss on social housing activities of £10.1m, primarily due to building safety works and investment in existing homes. This was anticipated on merger.

During the year we invested £206.3m in maintaining and improving residents' homes (2024: £178.8m). The Group has 3,024 homes under construction, and 699 were completed in the year to 31 March 2025 (2024: 608). The Group has limited exposure to the private sales market with only 35 homes for outright sale held as stock at 31 March 2025 and 144 homes for outright sale currently on site. The Group has 76 completed shared ownership homes held as stock at 31 March 2025 and 1,192 shared ownership homes currently on site (expected to be made available for sale from 2025 to 2029).

All information has been extracted from the 2024/25 year-end financial statements.