Large landlord boosts surplus as interest payments fall

The Leicestershire-based landlord’s bottom line was also helped by turnover increasing by 13 per cent to £147.5m, partly due to taking on more homes.

However, this was offset by group operating costs rising to £117.8m, up from £103.8m.

EMH’s headline social housing cost jumped by 16% year on year, to £4,173, as it invested heavily in maintenance and repairs, as well as decarbonisation. 

“We are proud to show that we are maintaining a high level of investment in our properties,” EMH’s annual report said. On this basis, the landlord said it regarded the 16 per cent increase as a “positive outcome”.

On an operating basis, the group’s surplus rose to £34.5m, against £31.4m the previous year.

Its operating margin, excluding surplus on sales, was flat at 20.1 per cent.

EMH reported a 17 per cent year-on-year drop in completions as it handed over 388 homes. Like many in the sector, it said that planning delays, contractor “liquidity” and resource issues had slowed its progress.

However, the group said it was still “committed” to build “up to” 500 homes a year.

The group’s EBITDA MRI interest cover figure was 101.7 per cent, broadly flat on the previous year’s level of 101.3 per cent. 

Overall, the group’s borrowing increased from £530m to £594m in its 2023-24 financial year.

Gearing was 50.7 per cent, up from 49 per cent the year before.

Rent arrears at the end of the year were 3.14 per cent, against a target of 3.5 per cent.

EMH currently has a G1/V2 rating with the regulator.