Hyde Group Financial Results 2022/23

Hyde Group

07 September 2023

 

Press release

STRICTLY EMBARGOED UNTIL 7am, 7 SEPTEMBER 2023

Hyde Group financial results 2022/23

Hyde's strong financial position continues to enable significant investment in homes, communities and services, to ensure it can build strong, sustainable future for its customers.

Highlights 2022/23

·    Operating surplus of £110.3m (2021/22: £110.7m); operating margin of 30.3% (2021/22: 29.6%)

·    Core operating surplus¹ of £57.4m (2021/22: £81.7m); core operating margin¹ of 20.2% (2021/22: 29.5%)

·    Net debt of £1,492m (2021/22: 1,427m) with available liquidity of £873m (2021/22: £891m)

·    £65.9m spent replacing bathrooms, kitchens, windows and doors, installing new roofs and carrying out cyclical decorations, plus electrical and 'business as usual' building safety works (2021/22: £55m)

·    Work started on building 2,105 homes (2021/22: 859) with 625 homes completed (2021/22: 456)

·    Secured £6m as part of the Greener Futures Partnership from the Social Housing Decarbonisation Fund, which we will match fund to significantly improve the energy-efficiency of 951 homes

·    £1.83m (2021/22: £1.65m) delivered in social value through suppliers; £1.1m (2021/22: £1.1m) awarded by Hyde Charitable Trust to customers and community organisations, benefiting 9,701 people (2021/22: 8,043)

·    £6.7m spent on building safety improvements (2021/22: £16.2m); £86.7m invested since 2017

·    Overall satisfaction with customer services of 78.7% (2021/22: 82%)

·    Investors in People Gold retained for the 11^th year

·    The Regulator of Social Housing confirmed Hyde's G1/V2 rating

·    Strong credit ratings. Fitch: A+ (negative outlook) and S&P Global: A (negative outlook).

¹Our core operating business excludes building safety costs, development and joint venture sales, and disposal proceeds.

Rod Holdsworth, Hyde Group Chief Financial and Resources Officer, commented: "Because of Hyde's strong financial position, we were able to weather the severe economic and sector challenges and continue to invest in our homes and communities, for the long term benefit of our customers.

"For example, we invested £65.9m, 20% more than last year, replacing bathrooms, kitchens, windows and doors, installing new roofs and carrying out cyclical decorations, plus electrical and 'business as usual' building safety works."

Hyde also continued to invest in building affordable homes, with 625 completions and a further 2,105 homes started in 2022/23. With continual improvement in the quality and energy efficiency of homes, this will help to reduce future maintenance and energy costs.

"While our overall operating surplus remained static, at £110.3m (2021/22:£110.7m), we saw a managed reduction in core operating margins [excluding building safety costs, development and joint venture sales, and disposal proceeds] as we chose to absorb the rent cap and higher inflationary costs, and continued our investment in homes and services," Holdsworth added.

Hyde's net debt remained stable at £1,492m (2021/22: £1,427m), with substantial undrawn liquidity headroom of £873m (2021/22: £891m).

Andy Hulme, Hyde Group CEO, said: "As a charitable organisation, we've listened to our customers and are working with them to improve the services we provide.

"We started a major restructure of our operational teams last year, to give us a more joined-up approach; piloted a new neighbourhood operating model, so we focus on local issues; and continued to invest in digital services, so customers can engage through their chosen channel, when it suits them.

"It's also important that we continue to build more affordable housing, so we're delighted to have started building more than 2,100 homes this year - more than double the number in 2021/22.

"Along with our strategic partnerships with Homes England and the Greater London Authority, we're continuing to work with our investor partners to build tens of thousands of new homes over the next decade. These homes are much needed and also generate surpluses that enable us to further improve our existing homes.

"We'll also be able to continue work to improve the energy-efficiency of our homes, thanks to being part of the successful £40.4m Social Housing Decarbonisation Fund bid by the Greener Futures Partnership. We'll receive about £6m - which we'll match fund - to improve 951 homes with better insulation and low-carbon heating."

Mike Kirk, Hyde Group Chair, commented: "We're in a strong position. The changes we've made will start to deliver real improvements in service delivery for our customers. We believe our approach to be the best way to enable us to build, maintain and manage even more high quality, safe, sustainable - and importantly, truly affordable - homes in thriving neighbourhoods in the coming years."

You can read more about our 2022/23 results and performance, and download the financial statements, on our website at www.hyde-housing.co.uk.

Notes to Editors

For more information contact Max Soudain on: 07918 057774 or  [e-mail]

About the Hyde Group

Hyde is a leading provider of affordable housing in London, the south east of England and neighbouring areas. We're primarily a group of 'not-for-profit' organisations, headed by Hyde Housing Association, which was established in 1967. We provide about 44,000 homes for people who might not otherwise be able to afford one, as well as providing them with easy-to-use landlord services.

We're committed to our social purpose, to becoming a truly customer-driven organisation, providing great services and ensuring our homes are safe, decent and energy-efficient.

To find out more about the Hyde Group visit www.hyde-housing.co.uk.

  www.hyde-housing.co.uk      @hydehousing      hydegroup      the-hyde-group

 

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