Sovereign reports strong quarterly performance

1,355 homes were completed in the first nine months of the year – 1,291 of which were affordable.

Toy house on a pile of pound coins

A report covering Sovereign Housing Associations financial, development and operational performance for the first quarter of the year has today (12th February) been released.

As outlined, group’s turnover for the year to date was £328.2m – an increase from £313.8m on the previous year, an increase of 4.6%.

Headline figures also include that of the completion of 1,355 homes (1,291 of which were affordable) in the first nine months of 2020 – an increase of 15.9%.

According to reports, Sovereign project that they will meet, if not exceed, their programme of 1,900 homes a year.

Volumes of property sales continue to perform well with 505 first tranche and open market sales completed in the nine months to December; net margin on sales has improved on last quarter’s results, increasing from 23.8% to 25.9%.

A reduction in operating surplus of 6.9% (£111.5m down from 2019 Q3: £119.8m) is said to be largely due to an increased focus in existing homes, including fire safety, primarily driven by electrical, testing and upgrade works.

The groups net interest year to date was £42.4m – £4.3m lower than budget.

According to reports, this is principally driven by lower variable interest rates and lower fixed rates achieved on the recent bond issuance.

Sovereign has net debt of £1.8bn and available cash and committed liquidity facilities of £665m at the end of December 2019, providing “sufficient liquidity to support future development plans”.

Sovereign have also reportedly joined a sector-wide working group to deliver a framework for housing associations to report on their Environmental, Social and Governance credentials.