Financial statements 2010/11
You can find out more about L&Q's finances and our performance over the last financial year here, and download the full document at the foot of this page.
Against a backdrop of economic recession and a radical shift in government policy, our surplus for the past year was £41 million with 1,700 new homes completed.
The full amount of the surplus has been immediately re-invested in the delivery of more homes, stock improvement and neighbourhood schemes. The need to deliver affordable homes has never been greater and our financial security will allow us to progress with a pipeline of new homes and ensure the continual improvement of service delivery to our residents.
We have committed £1.25 billion to our development pipeline of 8,900 new homes and are fulfilling our part within the wider need for the South East to meet housing targets. All of our £41 million surplus will be invested in the improvement of services to existing residents across our 67,100 homes and in the development of more affordable homes.
Despite the social and economic difficulties of the past year, resident satisfaction levels have now reached 80.2 per cent, the third consecutive annual increase, which places us in the top quartile of housing associations. We feel that this is an indication of the investment of time and money that is devoted to the maintenance and management of our properties.
Our position of financial robustness and our adherence to value for money will assure our future ability to deliver on new housing and maintain service delivery. We are committed to achieving further efficiencies of £22 million by 2013, and are already benefiting from the creation of our own construction arm Quadrant Construction Services by reducing third party costs. We have cut consultants fees by 33 per cent.
We have maintained our year-on-year operating margin despite the challenging market conditions and the uncertainty created by seismic shifts in Government policy. The robust base that this performance affords us, and the scale of the balance sheet, allows us to push ahead with the delivery of new houses and our commitment to provide a high level service to our residents.
The accounts also confirm the creation of a new L&Q Foundation which includes a commitment of £100 million of our internal capacity for community-related projects aligned to our social mission.
We are committed to investing in our communities through projects which increase our residents skills and employability; tackle disadvantage; provide support and activities for young people; help to minimise anti-social behaviour; and provide volunteering opportunities.
We have a strong track record in delivering our neighbourhood investment programme and decided to bring all of this work from across the group together into the L&Q Foundation so that we can continue to deliver ever more efficient and effective projects for our residents.
Highlights from this year's financial statements
Selected highlights from our 2011 financial statements show:
- We increased the number of homes owned or managed across London and the South East by 5,000 to 67,100 in 2011
- Turnover decreased slightly from £330m to £327m in the last year, and we posted a surplus of £41m
- £100m from the balance sheet is being set aside for community investment with the creation of the L&Q Foundation to give greater focus to L&Q's work in the community and neighbourhood investment projects
- Operating costs (excluding costs of sales) rose by £23m compared to 2010 the majority of this increase occurred through planned increases in repair and service costs to meet the Decent Homes Standard
- Our operating margin across the business has remained consistent at 26 per cent
- More than £144m was invested in upgrading and improving existing homes and we are committed to a new development pipeline worth £1.25bn
- Resident satisfaction levels have increased to 80.2 per cent, the third year-on-year increase
- Other performance highlights include a decrease in void periods across stock to only 1.2 per cent and a reduction in the number of properties failing decent home standards to under one per cent.
Further information
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