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A strong financial performance

Welcome | Our 2050 strategy | Value to society | Supporting customers | Providing safe, energy-efficient homes | Delivering homes | Value for money | Our staff 

We had another strong financial performance this year, delivering a healthy surplus and maintaining a robust balance sheet and a sector-leading funding position. This enabled us to grow and sustain our business, even through COVID-19, and will continue to do so, so we can meet the ambitions of our 2050 Strategic Plan.

Our position was confirmed by the Regulator of Social Housing’s Regulatory Judgement in November 2020, which saw us retain our G1/V2 rating. The G1 rating demonstrates our robust governance and our V2 rating shows our solid financial position, combined with our commitment to investing in our homes and to deliver more affordable homes in the future. Additionally, S&P upgraded us to an A+ rating, with a Stable outlook, in July 2021 and Fitch also awarded us an A+ Stable rating in June 2021.

Highlights 2020/21

  • Core operating income was £272.6m (2019/20: £265.6m)
  • Core operating surplus was £85.4m (2019/20: £84.6m)
  • Core operating margin of 31.3% (2019/20: 31.8%)
  • Available liquidity of £907.6m (2019/20: £828.3m)
  • Core operating surplus

    Our core operating business generated a surplus of £85.4m, which was consistent with the previous year’s performance. The operating margin of 31.3% in 2020/21 is in line with our strategic target of 30%.

  • Core operating income

    Our core operating income increased to £272.6m, excluding recovery of fire safety costs. This compared to £265.6m in 2019/20, incorporating increased rents (in line with regulation) and service charges.

  • Development sales

    Net proceeds from development sales, including joint ventures, were £11.9m, down from £22.1m in 2019/20, due to the timing of the completion of development schemes. However, they were higher than forecast, due to a stronger market and the stamp duty holiday.

  • Disposals

    We raised £41.7m from disposals (void disposals, staircasing and Right to Buy sales) in 2020/21. As expected, this was significantly lower than the previous year (2019/20: £114.6m), when we carried out the last of our large strategic disposals. Proceeds include the transfer of shared ownership homes to the M&G Shared Ownership Fund.

  • Repairs costs

    Before capitalisation, we spent £71.7m (2019/20: £74.9m) on responsive, planned and major repairs to our properties, as we continued to invest in, and maintain, our homes.

  • Property management and service charge costs

    We spent £43.4m (2019/20: £35.8m) on property management and £30.0m (2019/20: £29.9m) on service charges, as well as recognising £37.2m (2019/20: £37.0m) depreciation charge on our properties.

  • Fire safety

    We’ve spent £63.8m on fire safety since Grenfell in 2017 and continue to invest in improving safety standards, keeping customers safe in their homes. We spent £12.6m on fire safety in 2020/21, covering building work and waking watch costs; after capitalisation this was a net cost of £12.7m. We recovered historic fire safety costs of £12.9m from Government grants and through legal recoveries from contractors. We’ll continue to seek cost recovery and grant funding, to offset the cost to Hyde and our customers as much as possible.