Posted on 01 August 2022
Our financial strength enables us to support customers and provide safe, decent and energy-efficient homes.
Our core operating surplus was £81.7m (2020/21: £85.3m), with a core operating margin of 29.5% (2020/21: 31.3%)1.
Rod Holdsworth, Hyde’s Chief Finance and Resources Officer, said: “We’re delighted to deliver a healthy surplus and core operating margin again this year. Our financial strength has been confirmed by S&P, which reaffirmed our A+ (stable) credit rating in July 2022.
“Looking ahead, we anticipate that margins are likely to be squeezed in 2022/23, as we continue to invest in services and in improving our homes, against this challenging inflationary backdrop. It’s right to invest for the future, so we can meet our long term goals.”
Andy Hulme, Hyde’s CEO, added: “As a not-for-profit organisation, a robust financial performance allows our operating surplus to be reinvested in improving the quality of our homes and in continuing to improve outcomes for customers and their communities.
“It’s clear that rising food and energy costs, double digit inflation and increasing interest rates mean many families are faced with making impossible choices, as they struggle to afford the basics of food, fuel and rent every week.
“We’re committed to standing by our customers and offering support during these tough times. For example, over the last twelve months, the Hyde Charitable Trust awarded £1.1m to customers and communities, along with emergency relief funding, to tackle the physical, mental and financial impacts of the cost of living crisis, and the coronavirus pandemic.
“We want our staff and customers to be proud of the homes we provide and the communities we support. So, alongside the £80m we’ve spent on building safety since 2017, investment in our five-year property improvement programme will continue. We also plan to invest £282m more, to further improve the safety, quality and energy efficiency of our homes.
“And, while new home building continued to be impacted by COVID-19 and materials and labour shortages last year, we aim to be building at least 2,000 homes a year by 2027/28.”
Mike Kirk, Chair of Hyde Group, commented: “Having a strong, resilient business means we can deliver the right outcomes for existing and future customers. Our financial strength and operational resilience have enabled us to continue to invest in services that deliver better outcomes and life opportunities for our current and future customers. Our commitment to being truly customer-driven is unrelenting, but we still have a long way to go.
“We’re also embedding sustainability into all aspects of our business – so we can, eventually, improve all forms of capital: natural, social, human and financial. In the meantime, we’ll continue to drive efficiencies, to improve our services, and invest in improving the sustainability, quality and energy efficiency of our homes.”
Highlights 2021/22
- Core operating surplus was £81.7m (2020/21: £85.3m); core operating margin was 29.5% (2020/21: 31.3%)1
- Available liquidity was £891m (2020/21: £908m)
- £16.2m spent on building safety (2020/21: £12.7m); £80m invested since 2017
- Overall satisfaction with customer services was 82% (2020/21: 84%)
- Hyde Charitable Trust awarded £1.1m (2020/21: £1.5m) to customers and community organisations
- £1.65m (2020/21: £130k) in social value was delivered through Hyde’s supply chain
- 456 homes completed (2020/21: 651); work started on 859 homes (2020/21: 1,926)
- Staff engagement was 78% (2020/21: 86%); IiP Gold retained for the eleventh year
- The Regulator of Social Housing confirmed Hyde’s G1/V2 rating and both S&P and Fitch awarded Hyde a credit rating of A+ (stable outlook).
You can read more about our 2021/22 results and performance, and download the financial statements, in our Annual Review section.
1Our core operating business excludes building safety costs, development and joint venture sales, and disposal proceeds.