Half-year Financial Report

Summary by AI ^BETAClose X

Midland Heart Capital PLC reported a surplus of £22.9 million for the six months ending September 2025, demonstrating financial resilience with a gearing of 38% and interest cover of 311%, supported by £346 million in liquidity and an A1 Stable rating from Moody's. The company is making significant investments, committing over £60 million annually to upgrade more than 6,000 homes, including £2.4 million for energy efficiency measures that have reduced CO₂ emissions by 25%. Operationally, tenant satisfaction remains high at 82.7%, with 100% building safety compliance. Midland Heart also delivered 109 new affordable homes and secured approximately £50 million in additional funding from Homes England, contributing to a total Strategic Partnership programme value exceeding £170 million, and remains on track to deliver 2,250 new homes by 2030.

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Midland Heart Capital PLC

19 December 2025

Resilient results enable major investment in tenants' homes

Midland Heart has reported a strong financial and operational update for the period 1^st April 2025 - 30^th September 2025.

Despite a challenging economic environment and regulatory changes, Midland Heart achieved a surplus of £22.9m for the six months to September 2025, supported by robust financial management and operational focus. This financial strength has enabled continued investment in the energy efficiency and comfort of its homes, and the delivery of new affordable housing for the region.

Financial highlights include:

· Gearing: 38% (target <70%)

· Interest cover: 311% (target >150%)

· Liquidity: £346m

· Moody's rating: A1 (Stable)

Operationally, Midland Heart continues to put tenants first, reinforced by:

· 82.7% overall tenant satisfaction and 85.6% satisfaction with its repairs service

· 100% building safety compliance

· c82% of homes EPC C or above

The organisation has also delivered 109 new affordable homes during this period and remains on track to deliver 2,250 new homes by 2030, with a minimum of 60% for social rent. Midland Heart has secured c£50m additional funding through the from Homes England to accelerate delivery, bringing the total value of their Strategic Partnership programme to over £170 million.

As well as delivering new homes, the organisation has committed over £60 million per year on a programme of retrofit and aesthetic upgrades to improve the look, feel and thermal comfort of over 6000 homes and families across the Midlands region. Sustainability is at the heart of this work, with £2.4m already invested in energy efficiency measures and CO₂ emissions cut by 25% compared to last year.

Deputy Chief Executive of Midland Heart, Joe Reeves, said:

"Our financial strength and operational resilience mean we can keep investing where it matters most; in safer, warmer homes for our tenants and in building the affordable housing our region urgently needs. These results show that even in challenging times, we remain focused on delivering real value for our communities."

Read Midland Heart's latest performance report via our Investor Hub.

For more information, or to arrange a meeting with Midland Heart, please contact Newbridge Advisors: ir@newbridge.co.uk.

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