Stonewater Funding - STONEWATER H1 2026/27 RESULTS UPDATE

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RNS Number : 2539B
  
Stonewater Funding PLC
  
30 October 2026
  
 


Stonewater Funding PLC
30 October 2026
 
STONEWATER H1 2026/27 RESULTS UPDATE
 
 
Chief Executive's statement
I'm delighted to present our mid-year results to 30 September 2026. Our income and operating surplus increased on the same period in 2025-26. These results demonstrate our enduring financial strength and ongoing resilience in the face of continued wider economic and geopolitical uncertainty.
In the first six months of the financial year, we've made great progress in strengthening our leadership team and Board and are now well positioned to deliver our Vision - to be the most trusted, inspiring and sustainable provider of affordable homes.
This is a truly transformative time for Stonewater. Our new Board Chair, Angus Michie, started his tenure in October shortly after we were awarded £350 million through the Social and Affordable Homes Programme 2026-36. We will benefit hugely from his experience and expertise as we use this funding to deliver 2,348 new, sustainable homes. We also received £3.1m through the Social Housing Decarbonisation Fund in the first half of the financial year.
Investment in Stonewater's existing homes has also increased significantly, reaching £22.2 million during the six-month period, compared with £8.4 million at the same point last year. A further £99.1 million was invested in new homes, up from £78.7 million
We've also been able to donate £0.25m in August to support the great work done by our charity partner, the Longleigh Foundation.
We continue to hold high governance and financial viability ratings of G1 and V2 from the Regulator of Social Housing, along with a C2 consumer grading. We've made a lot of progress, but we never forget there is more to do.
With this recognition from the regulators and our key strategic partnership with Homes England reinforced, I'm grateful that everyone at Stonewater is working with one ambition, to deliver the consistent, quality services and communities our customers deserve.
Jonathan Layzell
Chief Executive Officer




Financial performance
Stonewater is pleased to report its consolidated financial results for the six months ended 30 September 2026 (2026-27 HY).
These half year figures are unaudited and for information purposes only.




Statement of comprehensive income


2026-27
HY
Actuals
£'000


2025-26
HY
Actuals
£'000


2025-26
FY
Audited
£'000




Turnover from social housing


153,661


144,395


281,425




Total turnover


160,654


158,602


305,452




Operating surplus


44,160


39,279


75,041




Surplus after interest


12,664


9,881


15,282




 




Operating margins


2026-27
HY
Actuals
£'000


2025-26
HY
Actuals
£'000


2025-26
FY
Audited
£'000




Overall operating margin


27.5.%


24.8%


24.6%




Operating margin on first tranche sales


12.6%


13.5%


12.7%




Operating margin on asset disposals


42.6%


46.1%


51.0%




 




Key financial ratios


2026-27
HY
Actuals
£'000


2025-26
HY
Actuals
£'000


2025-26
FY
Audited
£'000




EBITDA MRI interest cover¹


110.9%


107.6%


96.7%




EBITDA interest cover (funder covenant)2


180.8%


173.3%


166.0%




Social housing interest cover3


112.9%


108.3%


89.5%




Gearing4


45.6%


51.6%


50.3%




 
1 (Operating surplus overall - Gain/(loss) on disposal of fixed assets (housing properties) - Gain/(loss) on disposal of other fixed assets - Amortised government grant + Interest receivable - Capitalised major repairs expenditure + Capitalised major repairs grant received + Depreciation) / Net interest paid.
2 (Operating surplus overall - Amortised government grant + Depreciation) / Net interest paid.
3 Operating surplus on Social housing lettings / Net interest paid.
4 (Short-term loans + Long-term loans - Cash and cash equivalents + Amounts owed to group undertakings + Finance lease obligation) / (Housing properties at cost - work in progress).











Liquidity


2026-27
HY


2025-26
HY


2025-26
FY




Cash and undrawn facilities


£309m


£333m


£359m




18 month liquidity requirement


£304m


£195m


£240m




 




Ratings


2026-27
HY


2025-26
HY




S&P Global Ratings credit rating


A -
stable outlook


A -
stable outlook




Moody's Ratings credit rating (unsolicited)


A3
stable outlook


A3
stable outlook




Regulator of Social Housing grading


G1/V2/C2


G1/V2/C2




 
Stonewater has been rated by S&P Global Ratings (S&P) since 2018 and by Moody's Ratings (Moody's) since 2012 (on an unsolicited basis since 2018). After eight years with S&P and a thorough strategic review of Stonewater's public credit ratings, Stonewater has appointed Moody's to be Stonewater's sole external credit rating agency. The public rating is expected to be published soon.
Operational performance




Metric


2026-27
HY
Actuals


2025-26
HY
Actuals


2025-26
FY
Audited




Overall customer satisfaction1


62.1%


76.1%%


75.6%




Gross arrears


3.6%


3.9%


3.6%




Empty Homes Loss


1.4%


0.8%


0.8%




New homes


248 units


257 units


741 units




First tranche sales


61 units


131 units


163 units




Capital investment in new homes


£99.1m


£78.7m


£89.4m




Capital investment in existing homes


£22.2m


£8.4m


£8.7m




 
1 The fall in overall customer satisfaction is due to a change in methodology
 
Donations, grants, mergers and acquisitions
Stonewater has made a £0.25m donation in August 2026 (2025: £1m) to its charity partner, the Longleigh Foundation.
In August 2026, we were delighted to have retained our Strategic Partnership status with Homes England, receiving £350m as part of the Social and Affordable Homes Programme (SAHP) 2026-2036, which will be used to deliver 2,348. homes. Stonewater has received £3.1m of grant under the Social Housing Decarbonisation Fund in the first half of the financial year and is expecting £3.6m in the second half.
On 27 April 2026, Porthove Housing Association Limited, with 44 properties in the Brighton and Hove area and The Rotary Club of Hove Community Housing Society Limited, with 53 properties in Hove, transferred their engagements to Stonewater (5) Limited.
On 30 September 2026, Mount Green Housing Association Limited (registration number 16264R) transferred its engagements to Stonewater Limited as part of a corporate reorganisation.
 
Environmental performance
248 new build homes have been handed over so far, with all homes meeting at least EPC B and 42% being an EPC A. 
1,722 trees have been planted so far this year as a result of our new build homes, taking our total to 38,196 since 2019. 
We have developed a community garden at Westcott, with local partners and wellbeing groups using the space, and residents developing food-growing skills. Work continues to increase Stonewater customer involvement, supported by housing officers.
73.5% of homes are at EPC C or above, with an average SAP of 73.4 using the new SAP 10 methodology. 
Changes in Stonewater Board and management
Sheila Collins stepped down as Chair of Stonewater on 30 September 2026, after serving seven years in the role. Angus Michie, a serving Board member, succeeded her as Chair.
Stonewater created the position of Chief Investment Officer and appointed James Bradbury to the role with effect from June 2026. James oversees Development, Strategic Asset Management, and Health and Safety
Syka Sheikh was appointed Company Secretary and Group Director of Governance & Assurance with effect from June 2026.
Kirsty Spark has been appointed Chief Financial Officer and will lead Finance, Governance and Assurance. Kirsty will take up her new position with Stonewater in November 2026.
John Bruton has been appointed Interim Chief Financial Officer and will remain in the role until Kirsty Spark joins Stonewater as permanent Chief Financial Officer. A former Stonewater Executive Director of Finance who retired in 2022, John brings extensive financial, sector and organisational experience.
 




For further information, please see our website, or contact:
https://www.stonewater.org/news/latest-news/
 
Stonewater Group                               Telephone: +44 1202 319119
Suite C, Lancaster House  Email:  investor.relations@stonewater.org                   
Grange Business Park
Enderby Road
Whetstone
Leicester, LE8 6EP
 
 
 
Disclaimer
The information contained herein (the "Trading Update") has been prepared by Stonewater Limited (the "Parent") and its subsidiaries (the "Group"), including Stonewater Funding plc, (the "Issuer") and is for information purposes only.
The Trading Update should not be construed as an offer or solicitation to buy or sell any securities issued by the Parent, the Issuer or any other member of the Group, or any interest in any such securities, and nothing herein should be construed as a recommendation or advice to invest in any such securities.
Statements in the Trading Update, including those regarding possible or assumed future or other performance of the Group as a whole or any member of it, industry growth or other trend projections may constitute forward-looking statements and as such involve risks and uncertainties that may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no assurance is given that such forward- looking statements will prove to have been correct. They speak only as at the date of the Trading Update and neither the Parent nor any other member of the Group undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments, occurrence of unanticipated events or otherwise.
None of the Parent, any member of the Group or anyone else is under any obligation to update or keep current the information contained in the Trading Update. The information in the Trading Update is subject to verification, does not purport to be comprehensive, is provided as at the date of the Trading Update and is subject to change without notice. No reliance should be placed on the information or any projections, targets, estimates or forecasts and nothing in the Trading Update is or should be relied on as a promise or representation as to the future. No statement in the Trading Update is intended to be an estimate or forecast.
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