Posted on 29 April 2020
Hyde maintains robust governance and strong financial position as we launch 30-year strategic plan
The Hyde Group has retained a G1/V2 rating by the Regulator of Social Housing, demonstrating our continued robust governance and strong financial position.
“We are pleased to have maintained both of our regulatory ratings again this year, which haven’t changed since the last regulatory judgement in 2017,” said Chief Executive Officer Peter Denton.
“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, so they continue to meet high building safety and energy efficiency standards, and our commitment to deliver more affordable homes in the future.”
"Hyde's 2050 Strategic Plan, A great home for everyone was launched this week and sets out our long term plans to provide homes for those that otherwise could not afford them", Peter explained.
“COVID-19 is a time of acute challenges for our customers and staff and managing the operational impact and ensuring a compassionate, considered response has been a major task. However, it is important that we don’t forget the need for a long term strategy, even in these turbulent times,” he said.
“This is fundamentally a customer-driven strategy – with long term planning for how we will serve the customers we have, those we will have from creating more homes and the customers of the future.”
Chief Financial and Resources Officer Rod Holdsworth explained that even though Hyde is adopting new ways of working and financing, our social purpose will not change.
“We want to ensure fairness and choice, to help customers improve their life chances, to the benefit of the individual, communities and society as a whole,” he said.
“We will continue to provide affordable homes that meet people’s needs in the long term – whether they are just starting out, raising a family, or enjoying a long and peaceful retirement – enabling them to live in the most suitable home, whatever their stage in life.
“We have a fully-funded business plan, which has been extensively stress-tested against severe scenarios, and this foundation underpins our confidence in the future.
“We are part-way through a large interest rate restructuring programme that will deliver a significant reduction in our future interest costs and lower our cost of capital. In March, we reset and closed out £105.5m of derivatives at a cost of £39.1m. This will provide net interest savings of £4.05m in 2020/21. This takes our debt weighted average cost of capital to 4.27% having reduced from 5.52% three years ago.
“As part of this ongoing programme we are delighted to announce that we have brought both Wells Fargo and National Australia Bank into our strategic funding group during the last quarter, increasing our facilities by a further £150m, with an average term of more than eight years. As a result of these new facilities, we had £700m undrawn facilities at 31 March 2020.”
Hyde will use a mixed-funding model to develop homes in the future, including grant and debt funding, partnerships and joint ventures with housebuilders, local authorities, other housing associations and third party institutional investors.
“While this expanded approach is somewhat new to the social housing sector, it will be underpinned by good financial management – we will continue to maintain our financial strength and stability by being efficient and through prudent planning and investment,” Rod said.