emh
Group's Interim Performance Update
covering the nine-month period to 31 December
2023
2 February 2024
emh Group Limited ("emh"), maintains
a strong nine months performance:
• Group turnover for the year to
date of £111.3m (2022/23 Q3: £99.4m)
• Operating surplus for the year to
date of £26.2m (2022/23 Q3: £23.0m)
• Surplus for the year to date of
£14.4m (2022/23 Q3: £12.5m)
• Maintained G1 (Governance) and V2
(Viability) rating from the Regulator of Social
Housing
Financial performance
Overall surplus at £14.4m is ahead
of budget despite the impacts from higher interest rates,
inflationary cost pressures and increased repair
commitments.
We invested £13.9 million in our
properties during this period (2022/23 Q3:£9.3m) and continue to
improve their energy efficiency.
Housing fixed assets total £1.0bn
(2022/23 Q3: £0.9bn). Debt at the period end was £566m (2022/23 Q3:
£505m) with £265m (2022/23 Q3: £225m) of available liquidity
included secured retained bond. Plus cash of £29m (2022/23 Q3:
£28m)
Credit Grade
In a statement made last week,
Standard & Poor's Global Rating ('S&P') announced
that emh's credit rating is 'A' with a 'Stable Outlook'.
The S&P rating reflects our
commitment to balancing investments in homes, providing affordable
homes in areas of need and maintaining strong credit metrics in a
challenging economic environment.
This follows the debt restructure
completed in July 2023 that removed major repairs from the interest
cover covenant, extended the term of the debt, reduced refinancing
risk and provided additional liquidity.
Comment from Geoff Clarke , Executive Director of
Finance and ICT:
The S&P rating reflects the
Board's commitment to;
·
Provide good quality, affordable and safe homes
for our customers
·
Invest in our existing stock to ensure our
properties meet the Decent Homes Standard
·
Have energy efficient homes that comply with at
least Energy Performance Certificate Band C by 2030.
·
Develop over 2,200 new homes over the next five
years in partnership with Homes England
S&P's 'A' rating with a stable
outlook recognises that, against the challenging external economic
environment, emh remains a good investment. We are a
financially robust business with a strong liquidity position and
resilience to manage any challenges ahead.
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Key
metrics
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S & P Credit
rating
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Governance & Viability
rating
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Liquidity
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Retained
bond
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Interest Rate
Mix
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A Stable
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G1 / V2
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Available
facilities £215m
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£50m
retained bond available for sale
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Fixed
92%
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Cash
£29m
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- Ends -
* All financial figures for Q3
2022/23 and Q3 2023/24 are based on unaudited management
accounts.
For
further information please contact:
Jonathan.Dwyer@emh.co.uk / Jonathan
Dwyer, Head of Treasury and Financial Planning 078 1133
2219