Annual Financial Report

Incommunities Treasury PLC

08 October 2026

 

Incommunities Limited

Publication of Audited Annual Report and

Financial Statements for the Year Ended 31

March 2026

Strong liquidity, resilient financial performance and continued investment in customers and affordable homes

Incommunities Limited ("the Group") today announces the publication of its audited Annual Report and Financial Statements for the year ended 31 March 2026. Incommunities Limited is the parent company of Incommunities Treasury Plc, and two other smaller entities.

The Group maintained a strong financial position throughout the year, with available liquidity of £125.7m, substantial covenant headroom and continued access to diversified funding sources, whilst delivering turnover growth of 6.8% to £134.2m (2025: £125.6m) and a 29.0% increase in operating surplus to £23.6m (2025: £18.3m).

The Group continued to invest in both existing and new homes, investing £43.5m in repairs and maintenance and £57.1m in affordable housing development, delivering 264 new homes during the year.

The Regulator of Social Housing reaffirmed the Group's G1 Governance and V2 Financial Viability gradings and awarded a C2 Consumer grading. S&P Global Ratings affirmed the Group's A- credit rating.

Credit Highlights

·      A- / Negative Outlook credit rating affirmed by S&P Global Ratings.

·      G1 Governance, V2 Financial Viability and C2 Consumer Standards regulatory gradings.

·      £125.7m available liquidity at 31 March 2026.

·      £115.0m undrawn committed facilities.

·      100% compliance with lender covenants throughout the year.

·      Substantial covenant headroom maintained across all funding arrangements.

·      Approximately 80% of debt fixed or economically fixed at year end.

Key Investor Metrics

Metric	2026	2025
EBITDA MRI Interest Cover	70.4%	46.2%
Gearing (%)	60.2%	60.6%
Net Debt (£m)	£355.9m	£325.2m
Reinvestment (%)	14.4%	13.5%
Weighted Average Cost of Debt (%)	3.9%	4.1%
Weighted Average Debt Maturity (Years)	16.0	19.1
Fixed Rate Debt (%)	80.4%	80.0%
Unencumbered Asset Value (£m)	£108.1m	£93.6m

Financial Highlights

·      Turnover increased to £134.2m (2025: £125.6m).

·      Social housing lettings income increased to £122.8m (2025: £116.8m).

·      Underlying operating surplus increased to £25.0m before impairment.

·      Reported operating surplus increased to £23.6m (2025: £18.3m).

·      Operating margin improved to 17.6% (2025: 14.6%).

·      Surplus for the year increased to £11.3m (2025: £7.6m).

·      Reserves increased to £128.2m (2025: £111.0m).

·      Housing properties at cost increased to £813.1m (2025 restated: £738.9m).

Operational Highlights

·      Delivered 264 new affordable homes, exceeding the business plan target.

·      Acquired a further 30 homes through stock transfer.

·      Invested £57.1m in development activity.

·      Invested £43.5m in repairs and maintenance.

·      Housing stock increased to 23,045 homes.

John Wright, Executive Director of Finance, commented:

"2025/26 was a year of strong delivery for Incommunities. We increased turnover, operating surplus and reserves while continuing to invest significantly in existing homes and new affordable housing.

We delivered our largest development programme to date, maintained strong liquidity and covenant compliance, and continued to strengthen our financial position.

Our balance sheet, liquidity position and funding structure provide a strong platform to support future investment whilst maintaining financial resilience in a challenging operating environment."

Financial Performance

Turnover increased by £8.6m to £134.2m, primarily reflecting rental growth, service charge increases and grant income received during the year.

Underlying operating surplus increased to £25.0m, reflecting growth in core rental income, strong shared ownership sales performance and continued financial discipline. Reported operating surplus was £23.6m after a £1.4m impairment charge relating to two high-rise blocks.

The Group completed 102 first tranche shared ownership sales during the year, generating income of £8.8m compared with £5.1m in the previous year.

Surplus for the year increased to £11.3m and total comprehensive income increased to £17.2m. Group reserves increased to £128.2m at 31 March 2026.

Investment, Liquidity and Treasury

The Group continued to invest significantly in existing homes, building safety and the delivery of new affordable housing.

During the year:

·      £43.5m was invested in repairs and maintenance.

·      £28.5m was invested in major repairs and component replacement.

·      £57.1m was invested in affordable housing development.

At 31 March 2026, available liquidity totalled £125.7m, comprising cash balances of £10.7m and £115.0m of undrawn committed facilities.

Borrowings increased to £368.2m (2025: £339.2m) as the Group continued to invest in its development programme and long-term strategic priorities.

In December 2025, the Group entered into a £25m variable-to-fixed interest rate hedge. At year end, approximately 80% of total debt was fixed or economically fixed.

The Group remained fully compliant with all lender covenant requirements throughout the year and maintained substantial headroom against all covenant tests.

Regulatory Judgement

Following an inspection during 2025/26, the Regulator of Social Housing confirmed the Group's G1 Governance and V2 Financial Viability gradings and awarded a C2 Consumer Standards grading.

The regulator identified a small number of areas requiring improvement. The Group has implemented a focused improvement programme to address these recommendations and further strengthen customer outcomes and service delivery.

Consolidated Statement of Comprehensive Income

Heading	2026	2025
Turnover	134.2	125.6
Operating surplus	23.6	18.3
Interest receivable and other income	1.5	0.6
Interest payable and financing costs	(13.7)	(11.4)
Surplus before tax	11.3	7.6
Surplus for the year	11.3	7.6
Total comprehensive income	17.2	8.3

Audit Opinion

BDO LLP issued an unmodified audit opinion on the financial statements.

The financial statements were approved by the Board on 24 September 2026 and the auditor's report is dated 25 September 2026.

The full Annual Report and Financial Statements for the year ended 31 March 2026 are available at: http://www.incommunities.co.uk/investor-relations

Enquiries

John Wright
Executive Director of Finance
Incommunities Limited
[e-mail]

 

END