Incommunities Limited publishes
Annual Report and Financial Statements for 31 March
2024
Incommunities Treasury Plc's
parent company, Incommunities Limited ("Group"), announces the
release of its audited financial statements for the financial year
ended 31 March 2024.
Incommunities Limited is one of the
largest Registered Providers in Yorkshire owning and
managing 22,833 homes (2023: 22,672)
properties across Bradford and Huddersfield, of which 22,813 (2023:
22,652) are social housing properties highlighting 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 improve our governance structure; this was
validated by the regulator moving us from a G2 to G1. The regulator
awarded us a top grade G1/V1 rating in September
2024,
Key financial
highlights:
-
S&P credit rating: 'A' (outlook
negative).
-
Social housing turnover: up by £6.5m to £107.0m
(2023: £100.5m)
-
Group turnover: up by £8.7m to £113.1m (2023:
£104.4m)
-
Operating margin[1] for the year
was 12.0% (2023: 5.3%)
-
Operating surplus for the year was £18.5m (2023:
£12.2m)
-
Housing properties at cost (before depreciation
and impairment) of £684.6m (2023: £640.5m)
-
The Group's reserves at the year-end are £102.7m
(2023: £93.0m)
-
Improvements to existing stock: £26.4m (2023:
£23.8m)
-
New developments £53.3m (2023: £41.1m)
-
Covenant condition satisfied with healthy
headroom.
Credit Rating
Our credit rating is 'A' (outlook negative). This
was affirmed by S&P Global Ratings in March 2024.
Regulatory Judgement (G1/V1)
The group governance rating was
upgraded to G1 in September 2024. This reflects our commitment to
robust risk management oversight and informed decision making. The
group retained its V1 status. We received a highly positive
governance report from our external governance review.
Financial Commentary
Income from social housing rent of
£107.0m increased by £6.5m compared to the prior year (2023:
£100.5m). Group Turnover for the year was £113.1m (2023: £104.4m),
an increase of £8.7m on the prior year. This movement is mainly due
to the increase in the rental income from social housing letting
compared to the prior year.
Our operating margin significantly
improved from the previous year because of the decrease in pension
accounting adjustments and the prior year rent provision of
£1.2m.
We remain committed to investing in
our housing stock to improve the quality of housing offered to our
residents. During the year, the Group invested £26.4m (2023:
£23.8m) through routine and planned work, and major repairs to
existing stock. The capital investment includes £23.1m (2023:
£18.9m) relating to major components replacement.
The Group's reserves at the year-end
are £102.7m (2022: £93.0m), reflecting positive pension movements,
operating surplus and the results from a review of fixed assets
performed by management.
Incommunities' ambitious development plans are a key element of the growth
strategy and support customers to find a home they are proud of.
Our development spends of over £53.3m is supported
by a £22.6m grants successfully secured last year through the
Affordable Homes Programme.
All financial loan covenants have been met and have significant
headroom. Performance against the financial loan covenants is
formally tested by the Group on 31st March each
year.
Our Statement of Comprehensive
Income to 31 March 2024 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 John Wright for further
information:
