Financial Performance

As a not-for-profit business, we channel all our financial surpluses into two key areas:

>> Building new affordable rural homes

>> Improving our existing properties and the services used by residents

This strategic reinvestment not only maximises the impact of public funding but also ensures our sustainable growth, even as we navigate the current economic uncertainty. By focusing on both new development and the enhancement of our current stock, we're able to meet the evolving needs of rural communities while maintaining financial resilience.

£1m*

Annual Surplus

>> Surplus reduced slightly to £1.0m (2023: £1.3m). Operating margin (excluding sales) saw a slight decrease from 27.3% to 26%. The operating surplus from Social Housing Lettings (SHL) grew to £2.2m (2023: £1.8m), with increased income being reinvested in homes and services.

*This does not include the one-off gains on the transfer of Gloucestershire Rural Housing Association (GRHA).

£3.8m

Cash Balances

>> Cash balances remain stable at £3.8m (2023: £4.7m). Cash balances are maintained at a level to ensure efficient financing of ongoing operational and development costs. Additional loans of £8m were drawn down to support the £8.5m investment in building new homes and component replacements for existing homes. The balance is funded by capital grants, sales receipts and cash generated from existing operating activities.

£21m

Loan Facilities

>> Undrawn loan facilities of £21m (2023: £29m) are in place to fund our projected development and existing homes investment programme over the coming years. This reflects the ongoing utilisation of the £32m revolving credit facility agreed with Santander in 2022. The Group maintains a robust portfolio of unsecured assets, with 666 properties currently available for charging, representing a minimum security value of around £47m.

Extra surpluses from home sales boost our ability to provide more affordable housing while meeting a variety of local needs. Recognising the need to generate surpluses to make public subsidy go further will enable English Rural to continue to grow sustainably and deliver the affordable homes we desperately need.

Eddie Smy, Finance Director