Margins hit last year by contractor entering administration
Jigsaw Homes Group expects its operating margins to recover to around 25% by the 2028 fiscal year, according to a credit opinion update released by Moody’s.
The credit ratings agency re-affirmed the housing association’s A2 rating in its release earlier this week, which it said reflected the group’s “adequate gearing and sound financial management”.
The 37,000-home provider’s operating margin had stood at 25% in the 2024 fiscal year but fell to 22% in 2025 due to a one-off charge related to a development contractor entering administration.
The operating margin would otherwise have been 24%.
Jigsaw is forecasting its operating margin to be 20.7% in 2026, rising to 21.6% in 2027.
The expected return to a higher operating margin is “supported by rental income growth that is running above inflation”.
>> Read more: Jigsaw’s financial outlook upgraded from negative to stable by Moody’s
>> Read more: Jigsaw to consolidate four registered providers into one
“The recovery in profitability will also be supported by reduced reliance on subcontractors - which had previously peaked due to service pressures - as the housing association works to maximise direct delivery to improve efficiency,” said the note.
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