- Revenue increase of 7.2% to £357m (FY17: £333m)
- A record surplus of £85m (FY17: £65M)
- 2,030 new homes built (FY17: 1,788)
- Orbit remains the leading developer of new homes for affordable and social rent
Orbit Group, a leading affordable housing provider, today announced its financial results for the year ended 31 March 2018, reporting a turnover of £357m.
The 42,000-home landlord achieved strong increases in revenue across its property management portfolio. Rental income increased by £10m, shared ownership by £19m and market sale by £5m.
Orbit’s operating margin remained at just over 32% and surplus for the year reached a record £85m, with £4m coming from the increase in value of its private rented portfolio.
Commenting on the results, Joy Baggaley, Group Finance Director, said:
“Orbit has had an excellent year on all fronts. The financial results reported today achieve a record high. Secured on a sound balance sheet, our strong profitability instils confidence in investors and so underpins our ability to continue to achieve our vision to lead in building thriving communities.”
Earlier this year Orbit secured a £450m 30-year single-tranche bond, giving the Group greater flexibility and capacity to support its long-term ambition of delivering 20,000 new homes over the next 10 years.
Orbit maintains its position as a top three developer of new homes in the social housing sector with 86% of homes built in the last financial year for affordable rent or home ownership.
Mark Hoyland, Orbit’s Chief Executive, said: “These strong results demonstrate that our clear and focussed strategy is delivering across the areas of service, property, people and profit for a purpose. The Group is fully committed to being an efficient and scalable organisation capable of delivering excellent services and more than 2,000 new homes per year.”
The accounts highlight the work Orbit is doing to invest in projects that provide the stability people need to build lives and strong communities. Orbit’s Better Days programme has helped 378 people into work, 3,300 people improve their wellbeing and 4,555 people manage their money in the last year.
Orbit has now completed 8,000 homes towards its target of 12,000 by 2020. Progress continues to be made towards the delivery of the Group’s 2020 business plan, including £22m investment into sustainable communities (target £30m) and 77% homes with a minimum rating EPC band C (target 100%).