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Making the most of our money

Welcome | Supporting our customers Building affordable homes 

Our solid financial performance in 2018/19 demonstrates that, despite the current economic and political uncertainty, we are well-placed to withstand any shocks to the housing sector for the foreseeable future, including a no-deal Brexit. 

Our turnover increased by 33%, from £339.6m to £450.2m, and our core underlying surplus, (before tax and fire safety costs), was up 31% from £102.2m to £134.5m. These increases were mainly due to a number of developments being completed last year, improved efficiencies and steady income from the rest of the business. 

Fitch awarded us an A+ Stable rating in March 2019, complementing our A Stable rating from S&P, which was re-affirmed in July 2019. 

View and download our financial statement (PDF, 12MB) for 2018/19.

 

  • Operating margin

    Operating margin is one of our key financial performance indicators. This was 36.3% in 2019/20 (excluding sales and fire safety costs), an increase of 3.2% compared to last year, and a 1.3% increase on budget. 

    This increase was the result of our efforts to improve our operational efficiency. For example, we have improved service charge handling, enabling us to give clearer information, estimates and notification of charges to leaseholders and residents, in a more timely manner, which has increased the amounts we have recovered.

  • Development sales

    During 2018-19, we generated a turnover of £148m from development sales, with a surplus of £51.5m. This included 978 properties sold as part of our stock rationalisation programme, which generated turnover of £109.8m and a surplus of £30.4m.

    At the year end, we had just 26 outright sale and 51 shared ownership homes awaiting sale, overwhelmingly all of which had been completed after January 2019 and in line with budgeted timelines. As at the 30 June 2019, only 39 of these 77 homes remained to be sold, exchanged or reserved.

  • Overall cost per home

    The overall cost per home, including management costs, service charges, maintenance and major repairs, increased from £4,013 in 2017/18 to £4,325 in 2018/19, which is still below the G15 average. The increase was due to our investment in fire safety and compliance of our homes and increased prices such as utility costs.

  • Investing in our homes

    Our stock investment fell from 7.6% to 4.9% in 2018/19, which is below the G15 average, but was largely the result of having fewer homes (we sold 978 homes to other social housing providers last year) and we have, in fact maintained the investment in our homes. We also continued our investment in communities, in line with the average G15 investment, through the Hyde Foundation (PDF, 7.5MB).