Annual Financial Report

Hastoe Capital Plc

15 August 2024

 

15 August 2024

  Publication of Annual Report and Financial Statements for year ended 31 March 2024

Hastoe Capital plc announces the publication of the Annual Report and Financial Statements for the year ended 31 March 2024 of Hastoe Housing Association Limited (the Group) and Hastoe Capital plc.

The Group generated a surplus for the year of £3.9m (2023: £5.6m) at an operating margin of 40% (2023: 48%).  The fall in the surplus for the year was as a result of a material increase in expenditure on maintenance and management costs.  Excluding the gain on the disposal of properties, the operating margin fell to 33% (2023: 41%).  An increase in the level of capitalised major repairs to £5.6m (2023: £3.1m) also contributed to the decline in the level of EBITDA MRI interest cover to 1.0 times (2023: 1.3 times).  The Group does not have any loan covenants that are based on EBITDA MRI.

Turnover from social housing lettings rose 7% to £33.8m (2023: £31.5m), primarily due to inflation linked rent increases.  There was very little contribution from newly built homes, as a consequence of the low levels of development activity in the last few years.  In contrast, operating costs on social housing lettings increased by 20%, rising to £21.8m (2023: £18.1m).  Responsive maintenance costs increased to £6.6m (2023: £4.6m), influenced by a significant investment in rectifying damp & mould issues. 

Turnover from first tranche sales was £2.6m (2023: £1.3m) and generated a margin of 25% (2023: 32%).  There were no open market sales in the year.

The Group's tightest interest cover covenant requires an earnings before interest, tax, depreciation and amortisation (EBITDA) measure to be a minimum of 120% of net interest costs.   Interest cover, on this measure, was 165% for the year

At the year end, the Group had committed debt funding of £268m.  Available liquid resources of £46m (cash holdings of £9m and undrawn loan facilities of £37m) are sufficient to meet the Group's committed expenditure.  The Group's drawn debt has limited refinancing risk with only around 20% of the Group's debt maturing within the next ten years.  The undrawn loan facility of £37m is committed until 2028. At the year end, Hastoe Capital plc held £50m of retained bonds.

A copy of both sets of accounts have been submitted to the National Storage Mechanism and are available for inspection.

For further information, please contact:

Will Roberts
Company Secretary

17 Marina Place
Kingston Upon Thames
KT1 4BH

Telephone : [phone]

Email : [e-mail]

 

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