Annual Financial Report

Hastoe Capital Plc

28 July 2026

 

28 July 2026

  Publication of Annual Report and Financial Statements for year ended 31 March 2026

The Group generated a surplus for the year of £7.0m (2025: £4.6m) at an operating margin of 44% (2025: 40%).  The rise in the surplus for the year was due to costs being controlled below the level of rent inflation, with a reduction in the level of responsive maintenance costs.  This was achieved by implementing controls on the behaviour of contractors and there was no evidence of customer detriment.  Excluding the gain on the disposal of properties, the operating margin rose slightly to 39% (2025: 34%).  A reduction in the level of capitalised major repairs to £3.0m (2025: £3.9m) also contributed to the increase in the level of EBITDA MRI interest cover to 1.5 times (2024: 1.1 times).  The Group does not have any loan covenants that are based on EBITDA MRI.

Turnover from social housing lettings rose 6% to £39.0m (2025: £36.7m), primarily due to inflation linked rent increases.  Amortised grant included the release of £0.7m due to an expired grant liability.  There was also a contribution from newly built homes, but this was fairly minor, as a consequence of the low levels of development activity in the last few years.  Operating costs on social housing lettings fell by 4%, to £21.9m (2025: £22.9m), due to improved controls on responsive maintenance expenditure.  The impairment charge of £0.2m reflects a reduction in the marketing value of one of Hastoe's offices.  Management costs increased by 11%, due to salary inflation, an increase in posts and an investment in improved cyber security.  As a result, the operating margin on social housing lettings rose to 44% (2025:38%).

Turnover from first tranche sales was £3.6m (2025: £1.2m) and generated a margin of 9% (2025: 18%).  There were no open market sales in the year.

All the Group's external debt is held by the Association.  The Association's tightest interest cover covenant requires an earnings before interest, tax, depreciation and amortisation (EBITDA) measure to be a minimum of 120% of net interest costs. The Board has set a golden rule that interest cover, on this measure, should not fall below 130%.  Interest cover, on this measure, was 193% in the year.  The EBITDA would need to be £7.4m lower to breach the golden rule and £8.6m lower to breach the covenant, demonstrating that the Association has a comfortable level of headroom.

At the year end, the Group had committed debt funding of £259m.  Available liquid resources of £38m (cash holdings of £5m and undrawn loan facilities of £33m) are sufficient to meet the Group's committed expenditure, as set out in note 24.  The Group's drawn debt has limited refinancing risk with only around 20% of the Group's debt maturing within the next ten years.  The undrawn loan facility of £33m is committed until October 2028. At the year end, Hastoe Capital plc held £50m of retained bonds.

A copy of the financial statements of Hastoe Housing Association Limited and Hastoe Capital plc have been submitted to the National Storage Mechanism and are available for inspection.

For further information, please contact:

Will Roberts
Company Secretary

17 Marina Place
Kingston Upon Thames
KT1 4BH

Telephone : [phone]

Email : [e-mail]

 

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