Bromford ready to invest in customers, homes and communities
Bromford has published its accounts for 2015/16 which show it is well placed to deliver bold plans for new homes and services. A record surplus of £57m will be reinvested in improving existing homes and services as well as an ambitious programme of house building.
Bromford’s core operating margin of 43 per cent (a rise of seven per cent in the last five years) is believed to be among the best in the sector. As Bromford’s turnover has increased to £170m, increased operational efficiency means there is a bigger surplus to invest in customers’ futures.
In the last financial year, 727 new homes were started and 465 completed as Bromford invested £50m from its surpluses and reserves into building homes. The 29,000-home landlord also outlined its new land-led approach to securing land for new homes – focusing with greater emphasis on securing the right sites for customers and genuinely contributing to the supply of new homes rather than relying on section 106 planning agreements. Bromford said this approach would “maximise our broader social impact” as it revealed plans to build more than 3,000 properties in the next five years.
Lee Gibson, Bromford’s new executive director of finance, said:
“The accounts demonstrate our financial strength and mean we’re in a good position to continue building and offering the right homes to our customers. Moving forward we’ll be driven by a far more land-led approach to development which will give us more control over where we build new homes and the design and quality of the homes our customers will get.
“It is testament to our financial strength, that we can afford to invest in the right land and homes which will generate greater returns in the longer-turn. The way I look at it is very simple: if we give customers a home they can be proud of, in a nice area and develop a positive, trusting relationship with them, we are far more likely to tap into their talents and improve our communities for all."
Lee added that part of growing and evolving as an organisation may involve joining up with other, likeminded organisations as part of a merger or joint venture.
The accounts also highlight Bromford’s £3.5m localities investment to shift the relationship it has with its customers and facilitate lasting change in its communities. Six new locality teams of neighbourhood coaches will work on smaller patches of around 175 homes to coach and empower customers to take control of their own lives and achieve their goals or aspirations.
Read more about how we are doing and read our annual reports here.