Financial Performance

As a not-for-profit organisation, we reinvest all financial surpluses into two core priorities:

>> Delivering new affordable homes in rural communities

>> Upgrading existing properties and enhancing services for residents

This targeted reinvestment approach helps extend the value of public funding and supports our long-term sustainability, even in a challenging economic climate. By maintaining this dual focus on growth and improvement, we continue to respond to the changing needs of rural communities while ensuring that our financial strength is preserved for the future.

£1.8m

Annual Surplus

The headline surplus reported for the year was down from £8.7m in 2024. However, this is entirely due to the gains on the acquisition of Gloucestershire Rural Housing Association in 2024 which contributed £7.6m to that surplus. When that one-off adjustment is discounted, the core surplus increased by £0.7m (2024: £1.1m). This was supported by an increase in operating margin (including sales) from 26% to 31%. The operating surplus from Social Housing Lettings grew to £2.6m (2024: £2.2m), with increased income being reinvested in homes and services.

£1.2m

Cash Balances

Cash balances reduced by £2.6m in the year as Group cash was ‘pooled’ and made available for capital investment in new and existing properties.

Overall, cash balances are maintained at a level to ensure efficient financing of ongoing operational and development costs.

The increased use of internal cash resources enabled reduced levels of overall borrowing which included a lower net balance on revolving facilities.

£23m

Loan Facilities

Undrawn loan facilities of £23m (2024: £21m) 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. Beyond this, The Group maintains a robust portfolio of unsecured assets, with a significant number of properties currently available for charging, representing a minimum security value estimated at £49m.

Our strong approach to resource management and financial resilience gives us the confidence to plan ahead, invest sustainably in both existing and new homes, and continue delivering the much-needed housing rural communities depend upon.

Eddie Smy, Finance Director