LONDON - London & Quadrant Housing Trust (L&Q) has released its unaudited trading update for the fiscal year ending March 31, 2025, showing an increase in EBITDA and operating surplus despite a decrease in turnover and completed residential homes. The housing trust, which owns or manages 109,673 homes, completed 2,316 new residential homes during the year, a decrease from the previous year’s 2,955 homes.
The company’s turnover dipped slightly to £1,098 million, down from £1,122 million in 2024. However, EBITDA rose to £376 million from £343 million, and the operating surplus increased significantly to £431 million, up from £333 million the previous year. This growth in profitability metrics came alongside a stable debt-to-assets ratio of 40% and a reduction in gross debt to EBITDA from 16.5x to 14.7x.
Ed Farnsworth, Executive Group Director of Finance, commented on the results, emphasizing L&Q’s commitment to improving services for residents and investing in the maintenance and safety of existing homes. The trust has entered the third year of its £3 billion, 15-year Major Works Investment Programme, which aims to ensure all residents have a safe and sustainable living environment.
L&Q also continues to rationalize its housing stock, including plans announced in the fourth quarter to transfer 3,500 homes in South Buckinghamshire. This strategy aligns with the organization’s focus on areas where it has the highest concentration of homes, such as Greater London and Greater Manchester.
Looking ahead, L&Q projects an operating surplus between £340 million and £360 million for the year ending March 31, 2026, with EBITDA anticipated to be in the range of £270 million to £290 million. The forecast includes the delivery of approximately 2,069 new residential homes, with around 73% expected to be affordable.
The company’s development pipeline is slowing down, in line with its strategic objective to reduce risk and prioritize investment in existing homes and services. The committed development pipeline stands at £1.4 billion, a decrease from the previous year’s £2.0 billion.
This trading update, based on a press release statement, provides insight into L&Q’s financial performance and strategic direction. As the housing trust continues to navigate the challenges of the housing market, it remains focused on delivering affordable homes and enhancing the quality of life for its residents.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.