3rd Quarter Results

EMH Treasury plc

02 February 2024

 

emh Group's Interim Performance Update

covering the nine-month period to 31 December 2023

2 February 2024

emh Group Limited ("emh"), maintains a strong nine months performance:

• Group turnover for the year to date of £111.3m (2022/23 Q3: £99.4m)

• Operating surplus for the year to date of £26.2m (2022/23 Q3: £23.0m)

• Surplus for the year to date of £14.4m (2022/23 Q3: £12.5m)

• Maintained G1 (Governance) and V2 (Viability) rating from the Regulator of Social    Housing

Financial performance

Overall surplus at £14.4m is ahead of budget despite the impacts from higher interest rates, inflationary cost pressures and increased repair commitments.

We invested £13.9 million in our properties during this period (2022/23 Q3:£9.3m) and continue to improve their energy efficiency.

Housing fixed assets total £1.0bn (2022/23 Q3: £0.9bn). Debt at the period end was £566m (2022/23 Q3: £505m) with £265m (2022/23 Q3: £225m) of available liquidity included secured retained bond. Plus cash of £29m (2022/23 Q3: £28m)

Credit Grade

In a statement made last week, Standard & Poor's Global Rating ('S&P')  announced that emh's credit rating is 'A' with a 'Stable Outlook'.

The S&P rating reflects our commitment to balancing investments in homes, providing affordable homes in areas of need and maintaining strong credit metrics in a challenging economic environment.

This follows the debt restructure completed in July 2023 that removed major repairs from the interest cover covenant, extended the term of the debt, reduced refinancing risk and provided additional liquidity.

Comment from Geoff  Clarke , Executive Director of Finance and ICT:

The S&P rating reflects the Board's commitment to;

·    Provide good quality, affordable and safe homes for our customers

·    Invest in our existing stock to ensure our properties meet the Decent Homes Standard

·    Have energy efficient homes that comply with at least Energy Performance Certificate Band C by 2030.

·    Develop over 2,200 new homes over the next five years in partnership with Homes England

S&P's 'A' rating with a stable outlook recognises that, against the challenging external economic environment, emh remains a good investment.  We are a financially robust business with a strong liquidity position and resilience to manage any challenges ahead.

Key metrics
S & P Credit rating	Governance & Viability rating	Liquidity	Retained bond	Interest Rate Mix
A Stable	G1 / V2	Available facilities £215m	£50m retained bond available for sale	Fixed 92%
		Cash £29m

- Ends -

* All financial figures for Q3 2022/23 and Q3 2023/24 are based on unaudited management accounts.

For further information please contact:

[e-mail] / Jonathan Dwyer, Head of Treasury and Financial Planning  078 1133 2219

 

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