LONDON - Thames Valley Housing Association (TVHA), operating as MTVH, has reported an increase in total revenue to $227 million for the six months ending on September 30, 2024, up from $209 million in the same period last year. This growth has been attributed to a 7.7% rise in government social rent and higher sales of new homes, with 147 units sold compared to 116 the previous year.
Despite the revenue increase, MTVH experienced a decrease in operating surplus, down to $61 million from $75 million, reflecting a $20 million lower surplus from fixed asset disposals year-on-year. Consequently, the operating margin shrank to 27% from 36%, and the total surplus fell to $14 million from $35 million.
Investments in property improvements and safety have also risen, with $20 million spent on capitalised improvement works and $8 million on fire safety, marking increases from the previous year's figures. MTVH highlighted its commitment to resident satisfaction and engagement, noting that its Tenant Satisfaction Measures (TSM) are ahead of peers.
The company's development program is on track to deliver 569 new homes in the full year, with 236 completed in the first half. The financial position of MTVH remains robust, with $675 million in available liquidity and an improved S&P Group rating of A- (Stable outlook). Fitch Ratings, however, downgraded the rating to A- (Stable outlook) in September 2024.
Mel Barrett, the newly appointed CEO of MTVH, expressed confidence in the company's resilient business model and strong balance sheet. He also emphasized MTVH's efforts to provide financial support to residents and to invest in new developments to address the need for affordable homes.
The company's trading overview indicates a 9% increase in total revenue compared to last year, driven by rent increases and higher sales revenues. Operating costs have risen to $163 million due to inflationary pressures, and the surplus from disposals has decreased. MTVH remains on track with its development projects, with significant investments in new developments and expectations to deliver around 569 new homes for the full year.
Looking ahead, MTVH anticipates full-year turnover and operating surplus to align with its budget, with asset disposal surplus expected to increase in the second half of the fiscal year. However, the organization cautions that the economic and geopolitical environments remain challenging, with high inflation and interest rates posing risks.
This trading update and financial results are based on a press release statement from MTVH.
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