Posted on 04 October 2017
The Hyde Group had another impressive financial year 2016/17, with an underlying surplus of £98.4m, an increase of £2.7m on the previous period.
“We are immensely proud of our performance this year,” said Hyde Chief Executive Elaine Bailey. “Delivering surplus is crucial to our future success, as it is all reinvested in providing affordable homes and landlord services to help tackle the housing crisis in London and the south east. In fact, in each of the last five years, our average annual investment has actually been double that of our surplus.”
Group Finance Director Peter Denton noted turnover fell from £350.5m to £315.7m in 2016/17, due largely to a fall in outright sales income of £37.6m. However, this was mitigated by our continued efficiency drive and the £24.8m generated by outright sales from our joint ventures.
“Joint ventures will play an important part in us meeting our ambitious target to build a rolling five year average of 1,500 homes per year from 2017/18,” he said. “Last year we finalised three joint ventures that alone will deliver about 3,750 homes in London, Rochester and Brighton and Hove.”
We handed over 465 new homes in 2016/17, began construction of 1,949 more and acquired a record 2,681 plots. More than 2,000 homes were also traded through three separate stock swap agreements, generating a profit of £24.1m, with a further £9.4m coming from stock disposals.
Denton said our “common sense investment” approach to property management, saw us invest £38m in improving homes and generate £4.1m of savings that would help offset the impact of the 1% rent reduction.
Our financial position was strengthened further after the year end, with the issue of a £400m bond to fund continued service improvements and build new homes. “This was the largest long term bond, at the lowest interest rate, ever issued – 3% over 35 years,” he said. “It was also given an excellent credit rating of A+ by Standard and Poor’s.”
Denton also said our group’s Fire Safety Task Force, set up following the Grenfell Tower Tragedy, had already carried out independent inspections of all of Hyde’s high rise blocks higher than 18m. “This has resulted in us identifying provisionally £10.6m of projected costs which, based on current information, would include non-capital expenditure of £5.3m.”
Bailey added: “We are celebrating our 50th anniversary this year and have never lost sight of our founders’ original social purpose: to provide great quality homes for people left behind by the market, at prices they can afford to rent or buy and on long tenancies that allow them to improve their life chances.
“We have more to do but are confident we have the drive and determination, plus a solid financial foundation, to achieve our ambitions. We look forward to the years ahead as we work towards providing a great home for everyone.”
Read on for our full financial results 2016/17.