"Use assets effectively and support sound financial health"
This year we kept a firm focus on using our assets effectively while supporting our overall financial resilience. This was reflected in a stable financial performance, with turnover of around £11.6 million and an operating surplus of around £3.2 million, giving us a solid foundation for ongoing investment and service delivery.
Active asset management has been an important part of this approach. During the year, we continued to apply our policy on historic listed homes, where carefully considered disposals can release funding for reinvestment in existing homes, services and future growth. At Long Whatton, our decision-making also reflected the need to provide safe, secure homes for residents and respond responsibly to the long-term challenges of climate change.
Managing financial risk and keeping the confidence of our lenders has been central to this. Throughout the year, our agreed covenants were comfortably met, and we dealt with in-year shocks and challenges as they arose. Following the year end, the Regulator of Social Housing upgraded our financial viability rating from V2 to V1, reflecting our continued commitment to balancing investment in homes and services with prudent financial management.
We also strengthened our approach to value for money. A new Value for Money Strategy and action plan were developed and put in place, giving us a clearer framework for assessing performance and identifying efficiencies. This has been closely supported by better data, enabling more informed, evidence-based investment decisions across the organisation.
The year also saw us secure a new replacement revolving credit facility of £20 million, enhancing our financial capacity and supporting our ability to keep investing in both existing homes and future development. Alongside this, we renegotiated our EBITDA covenants with key lenders, aligning them with sector norms and supporting our planned levels of investment in homes.
Taken together, this reflects a balanced and resilient approach to financial management. By maintaining strong performance, enhancing value for money and proactively managing our assets, we have kept English Rural financially resilient, while continuing to invest in homes, services and future growth.
This year we continued to modernise how we work, guided by a renewed IT strategy designed to improve efficiency, strengthen data security and support better decision-making across the organisation. Reliable, well-managed technology underpins everything from resident services to financial management, and we are investing to make sure ours keeps pace with our ambitions.
A key focus has been the responsible adoption of artificial intelligence. We began carefully piloting AI tools to support our teams, from streamlining everyday administration to exploring predictive approaches that could help us anticipate repairs and complaints before they escalate. Each step is taken with clear governance, so that innovation always goes hand in hand with security, fairness and the protection of resident data.
By investing thoughtfully in technology and AI, we aim to free up more time for our people to focus on what matters most: delivering high-quality homes and services for rural communities.
Securing a new £20 million credit facility and renegotiating our covenants has given us greater flexibility to invest, while our upgraded viability rating reflects the strength of our financial foundations. This is what allows us to keep building and improving homes for rural communities.
English Rural's Finance Director, Eddie Smy
>>
£11.6 million turnover with a £3.2 million gross surplus.
An enhanced strategic approach to Value for Money implemented, supported by a new strategy and action plan.
New replacement revolving credit facility of £20 million secured to support ongoing investment needs.
EBITDA covenants successfully renegotiated with all key lending partners, providing greater investment flexibility.
Financial viability rating remained V2 during 2025/26, with the Regulator of Social Housing confirming an upgrade to V1 after the year end.
>> A clear and structured approach to Value for Money, supported by improved data, enables more informed and efficient use of resources.
>> Active asset management is key to optimising portfolio performance and reducing risk.
>> Maintaining strong financial performance and regulatory compliance is essential to underpin long-term organisational resilience.
