REG - Peabody Trust. Peabody Capital PLC Peabody Capital No 2 - Full Year Unaudited Results

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27/06/2025 18:15

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RNS Number : 8297O  Peabody Trust.  27 June 2025

Full Year Unaudited Results

Peabody Group (incorporating Peabody Trust, Peabody Capital PLC, Peabody
Capital No.2 PLC and TCHG Capital PLC)

Peabody Group announces the following unaudited information ahead of the
Annual Report and Accounts for the year ended 31 March 2025 to be published in
the autumn.

Our turnover for the year was £1,035m, up from £989m in the previous year.
Net rental income from social housing properties increased to £805m with
other income of £230m remaining at similar levels to last year. Our rent
collection rate for the year was 99%, with average Peabody social rents at
£147 per week. Our financial inclusion team continues to work closely with
residents in financial difficulty, supporting them with flexible payment plans
and helping to boost their income.

Despite ongoing cost pressures and a challenging operating environment, our
core business continued to perform well in 24-25. Our social housing margin
was 19% in the year. Our operating margin after impairments and provisions
excluding sales was 23%.

Sales revenues from market sale and first tranche shared ownership sales were
£104m (2024: £130m) and with a margin of £11m or 10.2% (2024: £15m or
11.5%).

Some exchanged sales at Wornington Green in Kensington, totalling £73m in
proceeds, were originally expected to complete in the year and are now
expected to complete by the end of July 2025.

The surplus from disposals and staircasing was £75m. Staircasing during the
year benefitted from a targeted marketing campaign, the learnings from which
will feed into other Peabody non-core asset disposals. In November 2024 we
completed the sale of a portfolio of non-core shared ownership properties
which generated £44m of proceeds.

We expect our overall operating surplus for the year to be £220m (2024:
£244m) with an operating margin of 21% (2024: 23%).

Financing costs increased by £6m to £182m. This reflects an increased level
of borrowing during the year which funded our ongoing development programme,
and the prevailing elevated Interest rates. We continue to remain compliant
with all banking covenants, with our performance for the year maintaining
substantial headroom over required levels of interest cover.

Peabody's balance sheet remains strong with fixed assets of over £12bn and a
low level of gearing at just over 40%.

Looking after residents' homes

During the year we spent £430m looking after residents' homes. This included
£231m of capital expenditure, with £157m invested in improvements and
cyclical work, £44m spent on building safety works as we continue our
remediation programme, and £30m on energy efficiency measures, utilising
£15m of funding from the Social Housing Decarbonisation Fund Wave 2 and
matching it with our own funding. Over 80% of our homes are now rated EPC C or
above. We spent a further £199m on maintenance and responsive repairs
including on providing new local repairs teams on estates.

Performance, Priorities and Positive impact

Our half-year 24-25 Tenant Satisfaction Measures (TSMs) show a small
improvement of around 1% across a range of areas when compared to the prior
year. Satisfaction on the overall service provided by Peabody is up to 58.7%,
satisfaction with Peabody making a positive contribution to the neighbourhood
is at 60.6% and repairs satisfaction is up to 64%. We continue to measure TSMs
each month and hope to report further progress reflecting our commitment to
improving services for residents. We recently introduced new contractual
arrangements for repairs to support our locally focused approach to service
delivery.

During the period we've published several reports on our performance,
priorities and our positive impact. Our new Group Strategy sets out our plan
for the next three years and is focused on improvement. It is available here:
https://issuu.com/peabody_communications/docs/peabody_group_strategy_2025-28
(https://issuu.com/peabody_communications/docs/peabody_group_strategy_2025-28)

New homes, development and sales

We want to support the government in tackling the lack of housing in London
and the South-East, providing new social homes where we can. We use our own
balance sheet but are also seeking new and innovative ways to support the
development of new homes and communities. We recognise that the solution
cannot come just from funding new development from our own balance sheet.

We invested £333m in our new homes programme over the last 12 months,
delivering 1,010 new homes. The tenure mix of these new homes was as
follows:

Social Rent - 224

Affordable Rent - 87

London Affordable Rent - 315

London Living Rent - 34

Shared Ownership - 213

Open Market Sale - 137

 

We started on site with 302 new homes during the year, continuing to do what
we can to tackle the affordable housing supply challenges in London and the
South-East. But we also have continued to carefully manage our development
programme, maintaining an appropriate level of commitment when faced with a
challenging financial environment.  We currently have 6,145 homes on-site
including joint ventures at various stages of construction.

 

Wherever possible when building homes for open market sale we seek to manage
risk by selling in advance of the homes being completed. The level of
completed homes for outright sale which have remained unsold for over 3-months
is shown below:

                        Reserved/Exchanged  Available  Total
 Over 6 months          13                  32         45
 Between 3- 6 months    6                   51         57

The total sales income for unsold units over 6 months old is just over £9m.

Liquidity

We continue to retain strong access to liquidity with over £1.1bn of cash and
undrawn facilities available. Our gearing continues to be relatively low when
compared to peers and 73% of our borrowing is on a fixed rate basis. We have
over 41,000 properties not currently utilised as loan security.

Ratings and certification

We are rated G1, V2 by the Regulator of Social Housing, and have yet to be
allocated a consumer standard rating. We are rated A3 (stable outlook) by
Moody's and A- (negative outlook) by S&P, we secured an A (stable outlook)
rating from Fitch during the year.

Ian McDermott, Peabody Chief Executive said "This has been another year of
improvement and higher investment to support our top priority of looking after
residents' homes. We're seeing positive change, but we know there is much more
to do. We're focused on delivering better services for residents, being better
together for colleagues, and providing better homes and places for the
long-term.

"Over the next three years, residents will see our services become more
reliable - with fewer issues, quicker fixes, and clearer communication. We'll
equip our teams with better tools and training, simplify how we work and embed
a local approach throughout the organisation.

"While we started fewer new homes this year, we're acutely aware of the
overcrowding and homelessness challenges in London. We want to do what we can
to support the delivery of new homes and regeneration in and around the
capital. We welcome the measures announced in the spending review which show
strong backing and support for the sector from government. Pledges around
long-term rents, remediation support and new funding are a positive and
welcome change which will help build our capacity to invest."

Contact: Anthony Marriott, Director of Treasury & Corporate Finance or Ben
Blades, Assistant Director Corporate Affairs.

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