Housing association reveals increase in surplus despite Covid-19 challenges | Housing Finance Network news

Housing association reveals increase in surplus despite Covid-19 challenges

The Hyde Group has announced its latest financial results, showing a rise in core operating surplus.

Key highlights from the results include:

  • Core operating income rose to £272.6m from £265.6m in 2019/20
  • Core operating surplus was £85.4m (2019/20: £84.6m), with a core operating margin* of 31.3% (2019/20: 31.8%) against a strategic target of 30%
  • Liquidity at an all-time high of £907.6m (2019/20: £828.3m) with gearing of 47.7% (2019/20: 44.6%) reflecting conservative cash management in response to BREXIT and COVID risks
  • 651 new homes delivered (2019/20: 687), with 1,926 homes started on site (2019/20: 1,042)
  • Reserves at £579.7m (2019/20: £609.1m); an increase of £225.1m over the last five years
  • A further £648m of social value created (2019/20: £723m)
  • Overall satisfaction with customer services remained high at 84% (2019/20: 83%), as Hyde maintained business as usual services throughout the coronavirus pandemic
  • Hyde Charitable Trust awarded £1.5m in grants (2019/20: £0.3m), including additional COVID-19 emergency funds for customers and communities
  • Staff engagement remains high at 85% (2019/20: 86%) and Investors in People Gold Award reaffirmed for tenth year running
  • G1/V2 rating was retained from the Regulator of Social Housing in November 2020 and both S&P and Fitch upgraded credit ratings to A+ (stable outlook) during 2021.

Neal Ackcral, Hyde’s Interim Chief Executive Officer, said: “We’re emerging from COVID-19 in a good place. Through everyone’s hard work and commitment we were able to provide almost a full business as usual service to customers during the lockdowns, reflected in our customer satisfaction scores, which remained high all year.

“This year, we took steps to address some of the biggest external challenges we and our customers face. This included supporting staff and customers through the coronavirus pandemic; managing our Building Safety programme to keep customers safe; putting plans in place to tackle the 2030 and 2050 Net Zero Carbon challenge; and securing funding so we can keep building new, affordable homes.”

Rod Holdsworth, Hyde’s Chief Financial and Resources Officer, commented: “Our new £500m partnership with M&G Investments agreed in March 2021 – a first for the sector – is just one example of how we’re innovating to secure new sources of funding so that we can provide even more homes in the future.

“We’re underpinned by an exceptionally strong balance sheet, resilient long-term financial plan and a low cost of capital, as a result of the completion of our refinancing programme.

"While, like the rest of the sector, we face significant challenges over the coming years, we have the resources, experience and talent to overcome these. We’re confident that we’ll continue to fulfil our social purpose and deliver more of the right homes in the right places; homes that are safe, decent and energy-efficient for our customers.”