We've published our financial results and ESG report for 2021/22

We've published our financial results for 2021/22 which show we increased our affordable homes starts by 40% compared to the previous year despite the challenging operating environment being experienced across the industry.

We started building 511 new affordable homes during the year (2021: 364), reinforcing our commitment to delivering on our strategic objective of increasing the number of homes for people in housing need.

In addition we were awarded £122 million to build 1,000 new homes across London as part of the Affordable Homes Programme 2021-26. Our approved development pipeline is now 1,465 new homes.

Our surplus was £9.6 million (2021: £41.7 million), all of which we'll reinvest into building new homes and maintaining our existing homes. The total turnover was £243,869k (2021: £247,037k) and the operating margin was 17.7% (2021: 29.9%).

The difference to the previous year’s results is mainly explained by fewer homes sales (in line with our programme) and an impairment provision, where the value of land at our development at Merrick Road in Southall was written down. The development remains profitable over the life cycle of the scheme.

Network Homes remains attractive to investors and during the year we completed a significantly oversubscribed £200 million private placement. In addition, we received our first public credit rating of A with a stable outlook from credit agency Fitch - an indication that our capital structure, business fundamentals and liquidity are strong.

Our Welfare Advice Team gained £2 million for residents in unclaimed benefits over the year and we almost doubled our charitable fund spend from £44k to just over £70k. This has provided residents most in need with energy and food vouchers, replacement of essential household goods or other forms of financial support. We'll continue to support residents compassionately through the cost of living crisis.

The overall asset base rose to £2.2 billion and gearing increased slightly to 52%, demonstrating our commitment to delivering on our mission of providing safe, secure and affordable homes for as many people as possible.

I’m proud that we’ve remained financially and operationally resilient and have been able to deliver on our strategic objectives in the face of such difficult times. But we’re under no doubt that the next few years will be some of our most challenging yet, both for our business and the people we house. We’ve been able to respond effectively to change because of the enduring commitment from our colleagues, leadership team and Board. I would like to thank them for continuing to deliver on our mission of providing safe, secure and affordable homes for people despite the challenges we face.

Helen Evans, chief executive

We are confident that Network Homes is in a position of continued financial resilience. This is founded in strong income collection performance, ongoing discipline in cost control, prudent financial planning, robust internal control and our diversified development programme - as well as an increasingly diversified funding pipeline. Our business is therefore well placed to weather the significantly more challenging external operating environment over the coming years.

Peter Benz, executive director of finance

Read our financial results and environmental, social and governance report