TIDM94BD

RNS Number : 5157A

Incommunities Treasury PLC

23 September 2022

Annual Report and Financial Statements 31 March 2022

Incommunities Treasury Plc's parent company, Incommunities Limited ("Group"), announces the release of its audited financial statements for the financial year ended 31 March 2022. Incommunities Limited is one of the largest Registered Providers in Yorkshire owning and managing 22,708 homes (2021: 22,651) properties across Bradford and Huddersfield, of which 22,688 (2021: 22,631) are social housing properties highlight our commitment to provide and maintain high-quality affordable housing for our communities. Our priority has always been to ensure the safety and welfare of our residents, staff and partners and our investment in FY22 highlights our commitment to our path to G1.

Financial Highlights

Over the year income from social housing rent (GBP96m) increased by GBP1m on the prior year (2021: GBP95m) adjusted in line with the rent formula (CPI plus 1%). Social housing remains the core principal activity of the business and will continue to be so going forward. Overall Group turnover for the year was GBP102.3m (2021: GBP103.8m), a decrease of GBP1.5m on the prior year. However, this movement was mainly due to an upward revision on the revaluation of investment properties in the prior year of GBP3.8m as part of our transfer of engagement exercise to simplify the Group structure.

The operating margin for the year was 14.9% (2021: 21.1%). The decrease is mainly driven by higher operating costs which in the current year include costs relating to the transfer of engagements and work performed to strengthen the Group's governance to support our journey to regain G1 grading.

The Group's housing stock is included in the accounts at cost (before depreciation and impairment) of GBP603m (2021: GBP587m). We remain committed to investing in our housing stock to improve the quality of housing offered to our residents with c.GBP23.7m invested in FY22 through routine/planned maintenance as well as major repairs across our portfolio. The Group's reserves have also increased significantly to GBP42m (2021: GBP10m), reflecting the positive uplift from both pension movements and the results from a review of fixed assets performed by management.

In FY22, the Group met all financial loan covenants and operate with significant headroom against these metrics. EBITDA MRI Interest cover stood at over 150% which is above our target at 130% and the overall Group gearing stood at c.63% which again was well inside our tightest covenants.

Our Statement of Comprehensive Income to 31 March 2022 is shown below:

The full audited financial statements for Incommunities are available from the Investor Relations section of our website: https://www.incommunities.co.uk/investor-portal/ .

Please contact our Executive Director of Finance Shaeen Azam for further information:

   D:         07854503003 
   E:         shaeen.azam@incommunities.co.uk

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September 23, 2022 11:56 ET (15:56 GMT)

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