Financial statements 31 March 2025 - Replacement
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A non material typographical change has been made to the 'Financial statements for FYE 31 March 2025' announcement released on 29 September 2025 at 09.37am under RNS No 2037B.
The change is identified with an asterisk (*).
The full amended text is shown below.
Notting Hill Genesis releases annual report and financial statements for the year ending 31 March 2025
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM AUSTRALIA, NEW ZEALAND, SOUTH AFRICA, JAPAN, CANADA OR SWITZERLAND OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
29 September 2025, London - Notting Hill Genesis, one of London's largest not-for-profit housing associations, has today published its annual report and financial statements for the year ending 31 March 2025 on the National Storage Mechanism which can be views here: http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2025-9-29.pdf.
The economic and market backdrop remained persistently challenging in 2024/25, with higher interest rates and cost pressures impacting organisations across our industry. Despite this, our underlying performance was robust, with turnover increasing to £717m and our focus on cost control resulting in a year on year 20% improvement in operating margin position.
Our cost base is becoming more efficient, and we continue to have a strong balance sheet with good levels of liquidity, supported by our successful raise of £250m after the period end. At the same time, our overall financial performance in 2024/25 was materially affected by some significant one-off non-cash items, which meant that for the year to 31 March 2025* we are reporting a deficit of £129.5million. As we set out in our trading update in June, the reasons for this are a £119m downward revaluation of our private rent portfolio and £42m of exceptional costs due to impairments at some development sites because of additional building safety work and cost increases.
We received a regulatory judgment during the year that recognised our financial stability but also demonstrated the need for significant improvements across our organisation. Good strategic and operational progress has been over the past 12 months and we are pleased with the steps taken to deliver against our Better Together strategy and regulatory compliance action plan.
On Friday 26 September 2025, S&P Global Ratings has affirmed its 'A-' long-term issuer credit rating on NHG (with a 'negative' outlook), in recognition of the steps we are taking to reduce debt through strategic asset disposals and cost-control.
To deliver better connections, we have bolstered our local officer and the customer service centre teams with the support of specialist teams covering repairs, complaints, service charges and legal services.
A key priority to deliver better homes was to tackle overdue fire risk actions and damp and mould cases, as well as setting an ambitious target for stock condition surveys. We were pleased to have made good progress in all of these areas. We have also continued to invest significantly in day-to-day repairs and to accelerate our refurbishment programme.
Even though we have scaled back the rate of new development, we remain committed to delivering better places. In 2024/25 we invested over £118m in our regeneration schemes and delivered 793 new homes for Londoners.
Notting Hill Genesis is an organisation undergoing an ambitious transformation and change on this scale will take time. Looking ahead, improving the resident experience will continue to be a key priority for the organisation, enabled by £800 million of investment into our homes over the next 10 years. We have growing confidence that important building safety works will be completed at the expected cost of £173 million and we will continue to do our bit to address the shortage of housing in London by building 3,000 new homes over the next five years.
At the same time, we will drive value for money initiatives to realise an ongoing £35 million per annum reduction in cost and will target measures to reduce debt and underpin the organisation's financial resilience by identifying and selling assets that sit outside of our core business operations.
On 24 September, we welcomed Brendan Sarsfield as new group board chair and Dave Sheridan as chair of the homes sub-committee. Both bring extensive experience in housing and will play a meaningful role in driving our transformation in the years ahead.
Chief executive Patrick Franco said: "Over the course of the last year, we have faced many challenges that have tested our organisation. The economic and market backdrop has remained persistently difficult and we received a regulatory judgment that demonstrated the need for significant improvement. Delivering the required change will take time, but as an organisation we have responded positively and have redoubled our efforts to become a more resident-focused organisation. I am pleased with the strategic and operational progress made in the year and the steps we are taking to regain regulatory compliance. Our transformation is gathering momentum and I am confident in our ability to deliver progress in the years ahead."
Trading in the new financial year has been as expected and we will provide further detail in our six-month trading update.
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For further information, please contact: |
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Financial enquiries: Mark Smith, chief financial officer |
Mark.smith@nhg.org.uk |
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Media enquiries: |
media@nhg.org.uk |
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