MTVH Unaudited Half-year Results 30 Sept 2023

Metropolitan Funding PLC
28 November 2023

Metropolitan Housing Trust Ltd / Metropolitan Funding PLC

Thames Valley Housing Association (TVHA), trading as MTVH, announces trading update and unaudited consolidated financial results for the six months ended 30 September 2023

Strong H1 performance provides foundations for full year growth

Overview and highlights

o Despite high inflation and rising interest rates putting upward pressure on costs and lowering housing market confidence our H1 2023 operating surplus improved to £75.2m (H1 2022: £69.8m).  

o Total revenue increased to £209m (H1 2022: £197.8m)

o Operating margin improved to 36.0% (H1 2022: 35.3%)

o Total surplus was £34.5m (H1 2022: £34.8m).


o Revenue from rent and service charges £175m (H1 2022: £161m) with rent arrears slightly improving to c.5.3% (March 2022 c 5.7%).

o Following the Government's announcement of a 7% 2023/24 social rent cap, we have committed to cap shared ownership rent increases at the same percentage for FY 2024.

o We invested £16.5m in planned improvement works to our estate (H1 2022: £14m) and fire safety spend was £5.3m (FY22 £8.1m).

o We remain committed to supporting residents during the cost of living crisis and £338k was spent from the Hardship Fund in the half year.


o Our development programme is on track to deliver more than 815 new homes in the full year through partnership projects such as Clapham Park and Westhorpe Gardens.

o In H1 2023 we completed 293 new homes (H1 2022: 107)

o Sales of 116 units completed (H1 2022: 149)


o Our financial position remains strong and supports our strategy for continued sustainable growth.

o £765m (March 2023: £725m) of available liquidity.

o S&P Group rating of A- (Negative outlook), following the UK sovereign downgrade in October 2022.

o Fitch Ratings refreshed rating as A (Negative outlook) in October 2023.

o Ritterwald refreshed the Sustainable Housing Certification, moving MTVH up to Frontrunner for both Social and Governance, and Ambassador for Environmental criteria.



Geeta Nanda, OBE, Chief Executive, commented:

"Despite the challenging economic environment we have continued to invest in homes, communities, business systems and processes to serve residents better every day.


We are also investing to build the new homes the country needs. We completed 293 homes in the first half of the year and are on track to deliver 815 in the full year. Excellent progress continues to be made at our flagship regeneration scheme at Clapham Park, South London, with construction works on the second phase of 520 new homes now underway.


We have affirmed our position as a market leader in shared ownership by expanding our partnerships to provide sales and construction services for 12 other shared ownership providers, and through a new Joint Venture with Legal & General Affordable Homes.


Our strong first half performance leaves us confident for the full year outcome and our robust financial position is underscored by the A rating awarded by Fitch Ratings and the A- rating from S&P Group."



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Surplus to 30 September





Senior Leadership Changes

Helen McTeer who has been with MTVH for over 11 years was appointed to the role of Executive Director of Corporate Services in October 2023 following the departure of Jane Long who took up a position as CEO of a children's hospice.


Trading overview

Turnover from core social housing (ie excluding home sales) was up 9% compared to the same period last year.

Turnover from sales was lower as we sold 116 units in the first six months (compared to 149 in the same period last year). At 30 September 2023, we had 170 unsold units, of which only 54 are unsold over 90 days, with a sales value of £7.1m. While sales are currently in line with expectations, we remain well-placed if the sales market weakens.

Operating surplus (including profit from disposals and after expensed fire safety costs of £5m) was £5.2m higher than the same period last year at £75.2m (2021: £69.9m).

Operating costs in the first six months were £111.0m (2022: £92.1m). In FY23, the amount we spent on improvements to homes was weighted significantly towards H2 whereas this year the spend will be more evenly profiled. H1 24 maintenance-related expenses were £12m higher compared to H1 23, but £10m lower than H2 23. Year on year inflationary pressure also increased costs relating to salaries, utilities and managing agents. Operating margin for the first six months is 0.7 ppts higher at 36.0% (2022 35.3%).

Cashflow from operations (before interest and movements in debt) was £9.4m higher than H1 last year, with increases in sales (including aftersales) and disposals proceeds of £64.1m more than offsetting a £31.5m increase in development expenditure. Investment in new development projects totalled £124.1m (2022: £92.6m) in the period to 30 September and £16.5m (2022: £14.0m) was spent on capitalised repairs to the existing estate. The organisation completed 293 homes during the first half of the year (2022: 107) and remains on track to deliver more than 815 new homes for the full year.


Underlying net interest costs (excluding mark to market movements on derivatives) are £3.6m higher than the same period last year as variable rates increase from historic lows. At 30 September 2023, we had £765m (Sep 2022: £747m) of available liquidity (both cash and committed facilities) and total debt of £1,901m (2022 £1,908m). Liquidity management remains a key focus to mitigate the impact of a wider economic downturn. At the same time, our relatively low gearing, at 38%, and over £410m of available security provides further resilience to shock.


Thames Valley Housing Association's Standard & Poor's credit rating was downgraded to A- (Negative outlook) in October 2022 following the UK Sovereign Rating downgrade.

Fitch Ratings refreshed the organisation rating as A (Negative) in October 2023.

Full-year outlook

This outlook statement is subject to uncertainty/unforeseen market and business interruption as a result of uncertainty over the direction of government policy. The economic and geopolitical environments remain challenging, with persistently high levels of inflation and interest rates, along with supply chain and labour shortages, and continuing concerns over energy supplies.



The core housing business continues to perform well. Total revenue including home sales is expected to be around c 5% higher than last year due to sales revenues from strategic asset disposals. Underlying Operating surplus (before any non-recurring charges) is also expected to be c 5% higher than FY23.

The rent regime of CPI+1% for Affordable Rents will apply an increase of 7.7% to our social rents for FY25. This will boost revenues but margins will continue to be squeezed as operating costs are expected to rise by more than this. This will impact on our capacity to build new homes. MTVH is committed to providing increased support for those who face financial hardship.

Investment in building safety

Fire safety and Damp and Mould works have increased investment to our existing homes. This is a sector issue. The longer term impact of remediation obligations has led to a reduction in our capacity to develop new homes, particularly homes for sale.

We are continuing with our Safer Buildings programme driven by our desire to put customer safety first. We have completed the review of blocks over 18m and are substantially through our risk based review of blocks under 18m, to determine the extent of any remediation requirements. In certain cases, there has been a requirement to carry out further, more intrusive surveys. We have access to NHBC and the government's Safer Buildings Fund where we meet qualification requirements. We expect that developers/warranty providers will pick up the costs of remediation for newer buildings where this relates to construction defect. We will seek to either accelerate the remediation or redevelop the at-risk blocks, having confirmed we would not seek recovery from Leaseholders.

TVHA will report results for the year ended 31 March 2024, trading as Metropolitan Thames Valley, in summer 2024.


Consolidated financials


Statement of comprehensive income



Statement of Financial Position










Please contact Donald McKenzie, Director of Corporate Finance, on 0203-535-4434/ 07738-714126 or at


This information for investors is also available on our website:



1)   Operating margin is operating surplus/turnover

2)   Thames Valley Housing Association (TVHA) is the parent of the group trading under the brand of Metropolitan Thames Valley (MTVH). Metropolitan Housing Trust (MHT) is a wholly owned subsidiary of TVHA and MHT owns 100% of the shares of Metropolitan Funding Plc.


The information in this announcement of unaudited consolidated interim results has been prepared by the Thames Valley Housing Association group and is for information purposes only.

The unaudited results announcement should not be construed as an offer or solicitation to buy or sell any securities, or any interest in any such securities, and nothing herein should be construed as a recommendation or advice to invest in any such securities.

This unaudited results announcement contains certain 'forward-looking' statements reflecting, among other things, our current views on markets, activities and prospects. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results to differ materially from those expressed or implied by those statements. Actual outcomes may differ materially. Such statements are a correct reflection of our views only on the publication date and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Financial results quoted are unaudited. We do not undertake to update or revise such public statements as our expectations change in response to events. Accordingly undue reliance should not be placed on forward looking statements.

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