Our performance sets the tone for future growth
Our financial and operational results are strong, demonstrating that we're well on track to meet our ambitions.
This is the first report since the merger of Peabody and Family Mosaic in June 2017. Commenting on the results, our Chief Financial Officer,
Susan Hickey said: “The financial and operational performance for 2018 is an especially strong result, against a backdrop of continued rent reductions and upfront merger costs.
“We’ve delivered early merger efficiencies, maintained customer satisfaction and are well placed for future transformation and growth. Peabody is a patient long term investor, managing risks robustly and creating healthy and happy communities that will last.”
Financial highlights include:
- £609 million Group turnover
- £250 million investment in new homes
- £68 million investment in existing homes
- £6.3 billion total group assets
- £6.9 million invested through Peabody Community Foundation
Building resilience in communities
We delivered a surplus of £175 million in 2017/18 (£180 million in 2016/17). This is in line with our expectations, taking into account the one off merger and integration costs, streamlining the debt portfolio, one per cent rent reduction and the decision to improve our terms and conditions for care staff to pay the real Living Wage.
Our turnover increased by 9% year on year, the most significant contributor of this is an increase of £49million in open market sales, generating income for us to invest back into low cost homes and social purpose. Operating margin for social housing held steady at 32%.
Investing in high quality homes
Demonstrating our commitment to create high quality homes and great places to live for people on low incomes, we completed 949 homes in 2017/18 (target 686) and started 1,193 homes.
In line with our ambition to deliver at least 2,500 new homes a year from 2021, we aim to start 2,700 homes in 2018/19. One third of our pipeline is for low rent, one third for shared ownership and one third for private sale.View the full financial statement
We're one of the oldest and largest housing associations in London. Following the merger with Family Mosaic in June 2017, the Peabody Group now owns and manages more than 55,000 homes across London and the South East, housing over 111,000 residents. We also have 8,000 care and support customers.
Peabody runs an extensive number of community programmes which are open to all Londoners.