Large Yorkshire landlord sees half-year surplus drop a third

Incommunities, which manages 22,836 homes mostly across Bradford and Huddersfield, saw its bottom line dragged down by rising costs. Core operating spending increased to £44.6m in the six months, compared to £36.9m in its 2023-24 half-year.

This included a spend of £8.4m on improving its current stock. 

Like many landlords, Incommunites has stepped up efforts to tackle damp and mould in the wake of the Awaab Ishak case. 

“Addressing the issue of damp and mould continues to be a big focus for us and we have been able to reduce cases from 30 per cent of our properties to three per cent,” the group said in a filing. 

“Work is ongoing to reduce this further. We are undertaking surveys to understand the condition of all our homes and the insight this gives will allow us to formulate rigorous investment plans, including delivery of our sustainability ambition.”

Looking head on development, the group said it expects to have delivered 248 new homes by the end of the financial year, with a spend of £49.5m.

This would be an increase on the 203 homes Incommunities delivered in its 2023-24 fiscal year. 

The group reported an overall operating margin of 14.5 per cent in the half year, with a target of 12 per cent for the full year. 

Its EBITDA MRI figure at the half year was 110.3 per cent. The full-year target is 44 per cent, the filing said. 

The group’s half-year gearing figure was 58.7 per cent, while the annual target is 64 per cent. 

In October, Incommunties increased its borrowing from NatWest to £110m, while in August it agreed £50m in funding from Dutch bank ABN AMRO. 

It currently has a G1/V1 rating with the regulator after regaining the top grade for governance last September.