Half-year Financial Report

A2Dominion Housing Group Ltd

16 December 2025

 

A2Dominion Housing Group's Half Yearly Performance Update covering the period to 30 September 2025

A2Dominion Housing Group provides its Half-Year Performance Update for the six months ended 30 September 2025.

Financial Performance

The Group's operating surplus for the six months to 30 September 2025 was 12.3% lower than the same period last year.

	6 Months to	6 Months to
	30-Sep-25	30-Sep-24
	£m	£m
Turnover	165.5	218.9
Cost of Sales	(4.9)	(48.0)
Operating Costs	(130.5)	(132.0)
Share of Joint Venture Surplus	0.7	0.0
Surplus on Sale of Fixed Assets	8.8	7.1
Operating Surplus	39.6	46.0
Operating Margin	23.9%	21.0%
Interest	(27.9)	(32.6)
Surplus for the Period	11.7	13.4

Turnover decreased by 24% (£53.4m) year-on-year, reflecting the planned wind-down of development and outright sale programmes. This was further impacted by a significant land sale in the first half of 2024 and budgeted land sales in 2025 being delayed to the second half of the year, which is also reflected in the lower cost of sales in 2025.   

The non-core disposals programme is continuing as per the plan.

Despite lower turnover, operating margin has increased to 23.9% (2024: 21.0%) compared to the prior year due to a combination a combination of planned efficiency savings being delivered and some decreases in responsive maintenance costs (£1.7m) and planned repairs (£3.2m). However, these savings were partially offset by higher void losses (£1.3m) and an increase in communal service costs (£2.3m).

The fall in interest costs year on year is mainly due to the repayment of revolving loans totalling £50.5 million in April 2025. In addition, interest income has increased due to the surplus funds from the sale of the Temporary Accommodation properties in March 2025 being placed on Money Market Funds (circa £120m+) earning around 4%.

Unaudited Consolidated Statement of Financial Position
	30-Sep-25	30-Sep-24
	£m	£m
Other Fixed Assets and Investments	3,383.1	3,562.5
Current Assets	267.3	190.7
Total Creditors including loans and borrowings	(2,506.3)	(2,724.9)
Total Reserves	1,144.1	1,028.3

The decrease in the Group's fixed asset and investments is primarily due to the sale of temporary accommodation and investment properties. The increase in current assets is mainly due to higher cash at September 2025 of £157m (September 2024: £24m) offset by lower work in progress, reflecting the decrease in the development pipeline, and the repayment of joint venture loans. Total creditors have reduced, which is largely attributable to repayments of debt, and a reduction in deferred grants held.

Operational Performance

Customer: Customer satisfaction is very important to us. We monitor this though the customer perception Tenant Satisfaction Measures - https://a2dominion.co.uk/about-us/tsm . For the first 6 months of the year, overall satisfaction with our services is 60.9% for Low-Cost Rental Accommodation and 26.4% for Low-Cost Home Ownership and both are increases from the previous year. The key areas that our customers would like us to improve relate to how we respond to enquiries, the quality of our repairs service and how we handle complaints. These are areas which feature heavily in our improvement plans and the Voluntary Undertaking. Over the next 12 months, we are focused on improving customer satisfaction by driving service improvements to make sure that the work we are doing is having a positive impact for our customers. We continue to prioritise supporting customers to meet challenges around affordability, support and well-being. In the first 6 months of this year, we have delivered £6.3m worth of social value through our supported housing, tenancy sustainment and community investment teams, which is higher than the first 6 months of last year (Sept 2024: £4.9m).

Property: During the first half of the year, the Group completed the handover of 8 units, out of the 10 units forecasted for delivery in 2026. At present, we are prioritising Building Safety works alongside significant investment in the maintenance of our stock, and in improving the quality of our repairs service.

We are currently developing a comprehensive Regeneration and Development Strategy to improve properties and move forward with zero carbon initiatives to be undertaken with a variety of partners and funding models.  We plan to pilot this approach in 2026. 

Treasury:

As at 30 September 2025, the Group's loan facilities and borrowings are summarised as follows:

	Arranged	Drawn
	£m	£m
Revolving Credit Facilities	428.9	35.0
Term Loans	443.1	443.1
Capital Market Issues (including 'Club' bonds)	893.1	893.1
	1,765.1	1,371.2

In addition to the £393.9m of undrawn facilities, the Group had £156.9m of cash.

As at 30 September 2025, the Group's overall fixed rate ratio was 94.5% (September 2024: 87.9%) and the average borrowing rate is 4.46% (September 2024: 4.64%).

We retain over 16,000 unallocated or unencumbered properties across the Group with a security value of around £2.0bn.

Further Information

The latest Investor Update presentation can be found on our website: A2Dominion: Investors

 

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