REG - Peabody Trust. Peabody Capital PLC Peabody Capital No 2 TCHG Capital plc Catalyst Housing Ltd - Half Year Trading Update

Marriott InternationalAnnouncement

21/11/2025 10:00

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RNS Number : 4397I  Peabody Trust.  21 November 2025

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

This is an unaudited consolidated trading update for Peabody Group for the six
months ending 30 September 2025.

Highlights for Peabody Group

                                           Six months to 30 September 2025  Six months to 30 September 2024

 Homes owned and in management             109,322                          109,106
 Homes completed in the period             658                              225
 Homes under construction                  5,601                            5,395
 Total investment in existing homes (£m)   210                              190
 Turnover (£m)                             522                              486
 Operating surplus (£m)                    156                              130
 Operating margin                          30%                              27%
 Overall surplus for the period (£m)       55                               34
 Drawn debt (£m)                           5,188                            4,955
 Available facilities (£m)                 1,082                            1,078
 Accessible cash (£m)                      106                              109

 

Commenting on the results, Peabody's Chief Financial Officer, Phil Day said:
"We're continuing to prioritise investment in residents' homes and improving
services. We've started to see an improvement in our financial performance,
but we know we still have more to do. We're listening to residents and working
together with them to help provide the support and services that local
neighbourhoods need, whilst making sure we deliver value for money.

We anticipate the benefits of the comprehensive spending review will support
our ongoing improvement journey and have been actively engaging with
government and other partners to maximise its impact."

Financial performance

Turnover from our core operating activities increased by £15m in the six
months to 30 September 2025, compared to the same period last year. Our
operating margin rose to 30%, from 27% in the prior year. Rent collection was
stable at 98%.

Our social rents remain low at an average of £147 a week and we continue to
offer a wide range of support for residents. Staircasing continues to perform
strongly, supporting people to own more of their home and bringing in
additional income.

We sold 210 empty properties that were unsuitable and unsustainable as
part of our long-term plan, generating income of £68m. In the same period,
we re-let 1,301 homes - six times that number, providing much-needed homes for
people on the social housing waiting list or in unsuitable accommodation. We
also made £57m in development land receipts. This income will
be reinvested in residents' homes.

We continued to make good progress simplifying our operations and governance
structures and are still pursuing opportunities to raise additional capital to
invest through the sale of non-core assets. While the completion of new build
sales is progressing at a slower rate than forecast, we expect to see an
improvement in the second half of the current financial year.

Interest costs have increased in line with expectations following higher
levels of borrowing. We expect debt levels to peak in the current financial
year.

Investment in residents' homes

In the six months to 30 September, we invested a total of £210m in residents'
homes. This included £106m on capital improvements, of which £20m related to
building safety. During the period, we spent more money repairing and
refurbishing empty properties that will be re-let to new residents, as well as
specialist works and damp and mould-related improvements. We spent a further
£104m on repairs and maintenance, compared to £93m in the prior year, with a
particular focus on ensuring we meet safety and regulatory compliance
standards.

We welcome the implementation of Awaab's Law, which came in at the end of
October. We feel we are well prepared, have made appropriate financial
provision and are on track to meet all statutory deadlines.

With access to the Building Safety Fund for social rent properties, we hope to
be able to carry out the work needed to improve all of Peabody homes over 18
metres by end of 2029.

Our Housing Properties are recorded at a cost of just under £12bn, increasing
by £125m over the last 6 months.

New homes, development and sales

We invested £215m building new homes during the first six months of the year,
completing 658 homes for residents to move into. We started on site with the
construction of 234 new homes. We continue to prioritise our existing pipeline
with around 5,500 homes currently under construction, including through joint
ventures.

Sales revenue in the period was £48m, with a further £71m of sales exchanged
or reserved after the half year. We have faced completion challenges at our
Wornington Green development in West London, but we expect these to ease as
the year progresses.

The current levels of homes to be sold reflect the peaks and troughs of
development activity. The volume and age of stock held for sale is shown in
the table below:

                      Reserved/Exchanged  Available
 Over 6 months        10                  69
 Between 3- 6 months  15                  69
 Under 3 months       63                  104

 

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 75% of our borrowing is on a fixed-rate basis. We have
over 39,000 properties not currently used to support borrowing.

We continue to receive strong support from our funding group, with £350m of
additional facilities secured in the last six months, including £250m from
the Affordable Homes Guarantee Scheme.

Ratings and certification

We are rated G1, V2 by the Regulator of Social Housing, and expect to receive
a grading against the consumer standards during 2026. We are rated A3 (stable)
by Moody's, A (negative) by Fitch and BBB+ (stable) by S&P.

Performance, priorities and positive impact

At the half year, the results of our Tenant Satisfaction Measures among
residents who rent their home remain steady, albeit with limited sample sizes.
Among shared owners, we have seen a solid improvement of more than 2% across a
range of measures when compared to the full year 2024-25. We expect to see
further improvement as the contractual arrangements for repairs we put in
place over the last 12 months to support our local service delivery model
deliver results.

Since September, we have published several reports on our performance,
priorities and our positive impact. These are available on our website:

·    Group Annual Report 2025 - Investing in homes and services
(https://www.peabodygroup.org.uk/media/i51les1e/peabody_annual-report-2025.pdf)
highlights how during the year we focused on maintaining and improving
residents' homes, while putting the foundations in place to deliver better
services to residents in their local neighbourhoods.

·    Environmental, Social, Governance (ESG) Report 2025 - Working
together to create sustainable places
(https://www.peabodygroup.org.uk/media/pdyhjpuq/final-esg-report-2025.pdf)
shows our progress and performance against the 46 metrics in the Sustainable
Reporting Standard (SRS).

·    Resident Review 2024-25
(https://www.peabodygroup.org.uk/media/xggdc2u0/final-residents-review-2025.pdf)
, summarises the year's performance and achievements specifically for
residents.

·    Resident Impact Report 2024-25 - Listening and acting - how you've
made an impact
(https://www.peabodygroup.org.uk/media/hz5lxusi/resident-engagement-report-2025.pdf)
outlines the positive impact residents have had on how Peabody operates during
the year.

 

Statement of Comprehensive Income - Peabody Group

 £ million                                        Six months to 30 September 2025  Six months to 30 September 2024

 Turnover - from core operations                  474                              459
 Turnover - from sales                            48                               27

 Total turnover                                   522                              486

 Operating costs                                  (384)                            (356)

 Cost of sales                                    (38)                             (27)

 Surplus on staircasing/disposal of fixed assets  56                               27

 Operating surplus                                156                              130

 Net interest costs                               (101)                            (96)

 Surplus for the period                           55                               34

 Operating margin                                 30%                              27%

 

Note: Figures quoted in the update are based on unaudited management accounts,
which are subject to review and further adjustments.

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

 

 

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