Riverside `still has lot of work to do``
The much criticised Riverside Housing Association has reported an annual deficit for the second consecutive year, despite an increase in turnover .
The 75,000-home Merseyside group which critics claim to be bosy, inefficient and undemocratic recorded a post-tax deficit of £6.4m in the year to the end of March 2024 This is compared to a shortfall of £9.3m the year previously.
Terrie Alafat, chair of Riverside, said the performance was partly due to a “unique set of challenges” the group is still dealing with fromtaking on one Housing as a subsidiary in 2021.
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| RIVERSIDE BOSS PAUL DOLAN..."SHORT TERM CHALLENGES" |
This includes an “extensive cladding remediation programme” for the London-based landlord, she said, which is expected to be completed within the next three years.
One Housing also operated Baycroft, a loss-making private care homes business, which Riverside sold off this year.
The value of some of One Housing’s assets have also been written down due to what Ms Alafat, former chief executive of the Chartered Institute of Housing, called “historic development decisions”.
She also pointed to the planned cost of integrating systems and “operational restructuring” following the merger.
In its latest year, Riverside’s bottom line was also hit by its interest costs rising to £93.5m, up nearly half from last year’s total of £62.7m.
However on an operating basis, the group saw its surplus jump by 88 per cent year-on-year to £78m.
It was helped by a five per cent increase in group turnover to £656.3m. Revenue from social housing lettings rose by £19.7m, helped by the seven per cent increase permitted for rents, and represented 79 per cent of turnover.
Riverside was also boosted by a £21.3m surplus on the sale of property, up from £9.8m the year before. The group’s overall operating margin rose to 8.6 per cent compared to 5.1 per cent the previous year.
The landlord spent £200m on developing 1,479 new homes, compared to 1,016 the year before. A total of £87m was invested on existing stock.
.Paul Dolan, chief executive of Riverside, who took over from the long-serving Carol Matthews in May, said the organisation still has “a lot of work to do to deliver our ambitious plans for the future and to work through the short-term challenges”.
Carlisle Tenants` and Residents` Association which publishes this blog is a longtime campaigner against Riverside saying it is bossy inefficient and undemocratic.
