Half-year trading update

Yorkshire Housing Finance plc

15 November 2024

 

 

Yorkshire Housing Group (including YH Finance plc) trading update for the 6 months to 30^th September 2024.

·    Yorkshire Housing Group (YH) is today issuing its consolidated trading update for the 6 months ended 30^th September 2024.

·    These figures are unaudited and for information purposes only.

Highlights for the period ending 30^th September 2024

·    YH own and manage 18,943 homes.

·    YH has a regulatory rating of G1/V2.

·    YH has a credit rating with Moody's of A3 Stable.

·    Operating surplus for the period was £20.2m (2023: £14.2m)

·    Net surplus before taxation was £11.3m (2023: £6.2m)

·    EBITDA / MRI interest cover  was 138% (2023: 142%)

·    Social Housing Lettings Interest Cover was 111% (2023: 88%)

·    Gearing was 57% (2023: 55%)

Andy Oldale, Executive Director Finance and Governance commented:

"Despite a challenging economic climate, Yorkshire Housing has delivered improved financial performance compared to the same period last year.

I'm proud that our development programme has already delivered 273 new homes during the first 6 months of this financial year, with a pipeline that will continue to contribute towards an increase in affordable homes across Yorkshire and the Humber. We have had to flex our development programme to reflect economic reality, but are on track to achieve our overall target of 8,000 new homes by 2035.

Our sales of shared ownership remain strong, with 123 first tranche sales compared to 114 last year.  Our market sales are also recovering with 13 outright sales in the first 6 months compared to just 1 for the same period last year.

Pressure on our costs continues, especially reactive repairs where we have seen a significant increase in cost in the first half of the year.  This is clearly part of a sector-wide trend, however we are focused on improving our efficiency and in the process of implementing new systems to help reduce costs as well as working with our customers to reduce the number of reactive repairs.

Although inflation is easing, our customers continue to face significant cost of living pressures.  We work closely with them to help sustain tenancies and have seen no increase in the rate of arrears.  Our Money Coaches have worked with 468 customers already this year, supporting them with their finances.

At the same time, we have worked hard to reduce the number of empty homes and these are now at their lowest level since before the pandemic.

We remain committed to being a sustainable organisation and have undertaken a range of activities to make us be more sustainable and reduce our carbon footprint.  In particular, we have focused on improving the energy efficiency of our homes and 82% are now at a minimum EPC C level or above.

With good levels of liquidity we are well placed to deliver on our strategy and ensure as many customers as possible have a place they're proud to call home."

 

END