Anchor increases surplus amid regulatory troubles

Anchor has reported an increase in turnover and surplus in its first annual report since being found non-compliant with consumer and governance standards.

After self-referral to the Regulator of Social Housing last year, the specialist care and later living provider was in February handed a C3 consumer grading and in June was downgraded on governance from G1 to G3.

In its judgement on the latter matter, RSH said there was “insufficient evidence that Anchor has an appropriate, robust and prudent risk and control framework”, and that it had not “adequately managed and addressed key risks relating to landlord health and safety.”

However, the provider retained its V1 financial viability grading and its A+ Standard & Poor’s rating during this process.

In financial statements for the year ended 31 March 2025, it revealed that turnover had increased slightly from £628.7m to £678.6m.

Surplus for the year was £11.7m, up from £2m, while its operating surplus of £47.7m reversed the decline of the past two years, but was still below 2022’s £52m.

Anchor had 54,212 units owned and managed at the end of the year, the majority of which were later living.

The organisation houses people in almost 1,700 locations in more than 85% of local authorities in England.

Its EBITDA MRI interest cover stood at 175.7% at the end of the year, an improvement on 155.3% at the end of the previous year.

The group completed 197 new homes across England in the period, down from 573 the year prior. Increased investment in existing properties, however, rising from £76.3m to £92.4m.

>>See also: ‘One in five of us is over 65. In 10 years, it’s going to be one in four’… Anchor CEO Sarah Jones on why affordable later living housing matters

Amid the provider’s regulatory troubles, Anchor’s chief executive for three years, Sarah Jones, stepped down in June.

She was replaced in the interim by former chief finance officer Amanda Holgate, with Key Youngman stepping up as interim finance chief. A search firm has been appointed to find a permanent chief executive.

In its chair and chief executive’s statement, Christopher Kemball and Amanda Holgate explained the situation that had resulted in its compliance failures related to dam, mould and condensation case management and electrical safety checks.

Despite outlining a plan to deal with a backlog of the latter in last year’s reports, they said Anchor had experienced further challenges during the year with its supply chain and “found it difficult to procure extra capacity”.

As a result, its backlog did not sufficiently decline, leading to its self-referral.

In May, the Anchor appointed Sara Thomson to the newly-created role of chief risk officer as it seeks to improve its regulatory ratings.