Clarion Group turnover impacted by lower sales

Clarion Housing Group has recorded a slip in turnover due to fewer sales, as part of its annual report. 

The Group said it maintained a “robust” set of results and a “resilient” financial position despite a challenging trading environment.  

Highlights 

The Group reported turnover of £1.008 billion for the financial year 2022/23, compared to £1.059 billion in 2021/22. 

It also recorded a surplus of £97 million (2021/22: £186 million). 

The Group’s underlying operating margin was maintained at 30%. 

And £397 million was spent maintaining and improving its housing stock, compared to £364 million in 2021/22. 

Retrofit 

Clarion committed £108 million to upgrade some of its hardest to heat stock, supported by £49 million of social housing decarbonisation grant funding. 

Results context  

Clarion is the UK’s largest social landlord. It also has a development arm – Latimer. 

The Group manages 125,000 homes in more than 170 local authorities for around 350,000 residents. 

The 5% reduction in turnover was driven by lower sales, partially offset by an increase in core social housing rental income. 

Whereas several one-off costs impacted surplus performance, including a £45 million debt portfolio rationalisation. 

Excluding all one-off costs, the underlying net surplus was £185 million (2021/22: £206 million) – which represents “a strong performance in the current operating environment”, said Clarion. 

The Group built 2,032 new homes in 2022/23 – 78% were affordable. 

“We are pleased to report a robust set of results where all our surplus is retained within the business for reinvestment in our homes and communities,” said Mark Hattersley, chief financial officer at Clarion.  

“Despite the many pressures we are facing, responsible financial management has enabled us to increase our expenditure and investment in our existing homes and maintain the supply of new homes which are so desperately needed.  

“Our resilient financial position will ensure that we can continue to deliver for those who matter most, our residents.” 

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