LONDON - A2Dominion Housing Group Ltd, a UK-based housing provider, has released its half-yearly financial performance update for the period ending September 30, 2024. The company reports an operating surplus of £46.0 million, which remains broadly consistent with the previous year's figures over the same period.
The Group's turnover saw an increase to £218.9 million, up from £204.6 million, attributed to a £7.8 million rise in rental income, reaching £130.1 million, and an £8.4 million increase in sales turnover. Despite these gains, the operating margin declined slightly to 21.0% from 23.4%, influenced by higher costs in responsive repairs and planned maintenance, including building safety costs totaling £9.4 million.
Interest expenses rose to £32.6 million, with the report citing a one-off gain in the previous year that contributed to lower interest costs then. The surplus for the period stood at £13.4 million, compared to £20.2 million for the same period in 2023.
On the balance sheet, the Group noted a decrease in fixed assets and investments due to property disposals and a reduction in current assets, primarily from lower work in progress. Total (EPA:TTEF) creditors have also decreased, largely due to scheduled debt repayments.
In terms of operational performance, A2Dominion highlighted a customer satisfaction rate of 51.2% and acknowledged customer feedback calling for improvements in enquiry responses, repair services, and complaint handling. The company has committed to enhancing customer satisfaction over the next 12 months through service improvements.
The Group's development efforts have resulted in the handover of 354 units during the first half of the year, with 29.1% of these units being affordable tenures. A total of 926 units are expected to be delivered by March 31, 2025, with a development pipeline of 1,210 units from 2024/25 onwards.
On the treasury front, the Group reported £360.3 million of undrawn facilities and £24 million in cash. The overall fixed-rate ratio was 87.9%, with an average borrowing rate of 4.64%.
A2Dominion retains over 16,000 unallocated or unencumbered properties, valued at approximately £1.9 billion for security purposes.
This financial update is based on a press release statement and further details can be found in the Investor Update presentation on the A2Dominion Group's website.
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