Lifestone Homes Ltd Half Year Trading Statement

Paradigm Homes Charitable Housing

30 October 2026

 

Lifestone Homes - Half-year trading update

Unaudited results for the six months ended 30 September 2026

Lifestone Homes ("the Group") reports unaudited consolidated results for the six months ended 30 September 2026, its first full half year following the combination of Paradigm Housing Group and Settle Group on 27 October 2025. The Group adopted the Lifestone Homes brand on 1 October 2026.

Results include approximately 3,500 South Buckinghamshire homes acquired from London & Quadrant Housing Trust (L&Q) in January 2026. Further details are set out under Reporting basis.

Half-year highlights

·    Turnover of £152m; operating surplus of £61m; overall operating margin of 40.1%.

·    Operating costs excluding first-tranche sales of £81m, reflecting inflation, portfolio scale and activity levels.

·    Surplus of £24m after net interest payable and financing costs of £37m.

·    317 new homes delivered for rent or shared ownership.

·    £51.4m invested in existing homes and £59.5m in completing new homes.

·    Total gross debt of £1,841m; undrawn facilities of £464m; EBITDA MRI Interest Cover of 128.1%.

Anne Costain, Interim Chief Financial Officer, said: "Our priorities are integration, investment in existing homes and new affordable housing.  Rental income and sales supported first-half earnings, while inflation and financing costs remained common external pressures across the sector. We remain focused on delivering the merger and acquisition objectives, whilst ensuring the investment in our homes is prioritised."

Summary income statement	Six months ended 30 September 2026 (unaudited)	Paradigm Housing Group Limited Six months ended 30 September 2025	Settle.Paradigm Group Limited 2025/26 Financial year
	£m	£m	£m
Turnover - rent, service charge & other income	131	68	183
Turnover - first-tranche sales	21	11	28
Total turnover	152	79	211
Operating costs	(81)	(41)	(131)
Cost of first-tranche sales	(16)	(9)	(21)
Total operating costs	(97)	(50)	(152)
Surplus on sale of properties not developed for outright sale	6	3	6
Operating surplus	61	32	65
Net interest payable and financing costs	(37)	(20)	(52)
Surplus for the period	24	12	13

Financial performance

The Group delivered a good first-half financial performance, with an overall operating margin of 40.1%, including property disposal surpluses, and a margin excluding sales of 38.2%.

Rent, service charges and other income totalled £131m, reflecting rent uplifts, new homes and the South Buckinghamshire portfolio. Void losses were 1.2% of rent and service charges receivable, gross rent arrears were 3.0%, and the bad debt charge was 0.7%. Reducing void losses and gross rent arrears in the acquired South Buckinghamshire portfolio remains an integration priority.

First-tranche sales of 167 shared ownership homes generated £21m of turnover against sales costs of £16m.

Operating costs were £97m, including £16m of first-tranche sales costs. The remaining £81m reflects inflation, portfolio scale and activity levels.

Existing-home sales and staircasing generated £6m of surplus on property disposals.

Net interest payable and financing costs were £37m, reflecting acquisition debt and capitalised interest linked to development handovers. Reported EBITDA MRI Interest Cover was 128.1%.

Surplus for the period was £24m, equivalent to 15.8% of turnover.

Statement of Financial Position	As at 30 September 2026 (unaudited)	Paradigm Housing Group Limited As at 30 September 2025	Settle.Paradigm Group Limited As at 31 March 2026
	£m	£m	£m
Housing properties	3,224	1,771	3,145
Other assets	13	13	13
Investments	27	22	28
Net current liabilities/assets	(24)	5	10
Total assets less current liabilities	3,240	1,810	3,195
Loans due in more than one year	1,787	1,028	1,761
Unamortised grant liability	77	46	72
Other long-term liabilities	21	7	30
Capital and reserves	1,355	729	1,332
Total funding	3,240	1,810	3,195

Investment, financial position and funding

Housing properties had a carrying value of £3,224m, including a £331m fair value uplift on the Settle acquisition and £302m relating to the L&Q acquisition. The fair value uplift is non-cash and does not represent investment or operating efficiencies.

The £1,787m carrying amount of loans due in more than one year is net of a £7m bond issue discount and includes a £33m acquisition-related fair value reduction.

Loans of £14m are due within one year, bringing the Group's total gross debt to £1,841m, with £464m of undrawn facilities.

Capital and reserves of £1,355m include acquisition-related adjustments, other reserve movements and the £24m half-year surplus. Reserves are a cumulative balance, distinct from the period's earnings.

Development and investment in homes

The Group invested £51.4m in maintaining and improving existing homes and £59.5m in completing new homes.

Key performance indicators

Unaudited KPIs for the six months ended, or as at, 30 September 2026 are set out below.

	Six months ended / as at 30 September 2026 (unaudited)	Paradigm Housing Group Limited Six months ended 30 September 2025	Settle.Paradigm Group Limited 2025/26 Financial year
Surplus for the period as % of turnover	15.8%	15.6%	6.2%
Operating margin (overall, including property disposal surpluses)	40.1%	40.6%	31.1%
Operating margin (excluding sales)	38.2%	39.8%	28.4%
Rent loss % (voids as % of rent and service charge receivable)	1.2%	0.7%	0.8%
Bad debt % (Bad debt charge as % of rent and service charge receivable)	0.7%	0.7%	0.7%
Rent arrears (gross arrears as % of rent and service charges receivable)	3.0%	2.7%	2.9%
EBITDA MRI Interest Cover (adjusted operating surplus before interest, depreciation and amortisation, after capitalised major repairs, expressed as a percentage of interest payable and financing costs)	128.1%	148.9%	99.9%
Gearing (total loans less cash as % of housing properties at cost)	55.3%	57.5%	55.7%

Reporting basis

Results are consolidated for the six months ended 30 September 2026; the statement of financial position is at that date.  Legacy Paradigm Housing Group and Settle.Paradigm Group Limited figures are presented for context only and are not directly comparable with the current consolidated results. The September 2025 comparative period preceded both the merger and the L&Q stock transfer. The 2025/26 financial year includes their effects from the respective transaction dates. The 2025/26 surplus presented in this update excludes the gift on acquisition arising from the combination with Settle Group. Changes in portfolio composition and acquisition accounting also affect comparability with the current consolidated results.

Results include approximately 3,500 South Buckinghamshire homes acquired from L&Q in January 2026. Acquisition-related fair value adjustments affect property values, debt carrying amounts and related performance measures.

This unaudited management update does not constitute statutory financial statements. Amounts in the summary financial tables are rounded independently to the nearest £1m. Consequently, totals may not sum and movements between rounded balances, including capital and reserves, may not equal the rounded amounts reported for the period.

Enquiries

Financial enquiries
Anne Costain, Interim Chief Financial Officer	[e-mail]
Media enquiries
Anne Michael, Director - Communications	[e-mail]

 

END