G15 landlord misses build target
Hyde has reported large increases in its surplus and turnover but missed its target for completions.
The G15 housing association, in its annual financial statement for the year to 31 March, reported turnover of £465.5m, up a third from £350.9m the previous year.
The turnover figure includes £86.4m from property management services firm Pinnacle which was acquired by Hyde in November and operates as a subsidiary.
Turnover was also boosted by £25.2m in increased operating income and £1m in revenue from shared ownership first tranche and outright sales. This was offset by a reduction of £12m in joint venture income and £19.4m in property sales.
The group’s overall surplus nearly tripled from £25.9m to £69.1m. However this was due largely to impairments and writedowns totalling £37.6m in the previous year. The group’s core operating surplus excluding one-off items increased from £64.6m to £72.2m.
Hyde completed 602 homes in the year. This was down from 630 in 2023/24. The group said its completions in 2024/25 were lower than its target of 650 for the year.
It said: “This is lower than target, because we were impacted by some handover delays, contractors going out of business and fluctuating phasing of developments. “We’re managing our development programme carefully, as we reduce our exposure to market risks, by delivering more homes through our strategic partnerships”. The group invested £123.8m in improving homes, up 13% year-on-year.
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Hyde increased its operating margin from 21.1% to 21.8%, which it said was driven by operational efficiencies.
It also boosted its EBITDA MRI interest cover - which measures an association’s earnings to interest payments and is used as a measure of its ability to service its debt – from 80.1% to 90.3%. This is now well above the G15 average for 2023/24 of 52%.
The acquisition of Pinnacle, which manages 70,000 homes on behalf of councils, institutional investors and housing developers, means Hyde now manages nearly 118,000 homes. It was followed by 3,500-home landlord Tower Hamlets Community Housing (TCHC) joining the group in April.
Andy Hulme, chief executive of Hyde, said: ““Our acquisition of Pinnacle, as well as bringing THCH into the group, gives us a unique platform to work with residential customers, partners, investors and commercial clients in all four nations of the UK.
“Our end-to-end offering now includes landlord services, property and estates management, maintenance and tenancy management, facilities management and operational support. Our offering is unique; our partners can take comfort that every penny of surplus is invested back into the communities we serve.”
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