RHP Group reports £15m operating surplus for fiscal year 2025

LONDON - RHP Group, a UK-based housing provider, reported an unaudited operating surplus of £15 million for the fiscal year ending March 31, 2025, excluding a one-time impairment charge of £12.7 million related to a legacy development scheme.

According to a trading update released Thursday, the housing association increased its property portfolio to 11,179 homes, up from 10,805 in the previous year. The group’s turnover rose to £82 million from £71 million in 2024, with social housing lettings contributing 88% of total revenue.

Despite the revenue growth, RHP’s operating margin on social housing lettings declined to 20% from 24% in the prior year. The overall operating margin, including asset sales but excluding impairment, fell to 19% from 23%.

Laura Awosile, Interim Executive Director of Finance, attributed the margin reduction to "ongoing impact of inflationary pressures, increased investment in repairs and maintenance service, and wider cost challenges facing the sector." The social housing cost per unit increased to £6,915 from £6,049 in 2024.

The housing provider invested £15.9 million in improving existing homes and built 52 new properties during the fiscal year. RHP also acquired 305 homes as part of its growth strategy, which contributed over £1 million to turnover.

The group maintained its A credit rating with S&P Global, though with a negative outlook. RHP plans to transition to an in-house repairs service delivery model by October 2025, which it expects will "deliver lower repairs costs" and "increased customer satisfaction" in future years.

The £12.7 million impairment relates to a development project initiated in 2017 that faced delays due to planning issues, COVID-19, and Brexit-related labor and material challenges. The company terminated the developer’s contract and determined the building may need reconstruction to comply with current building safety regulations.

RHP Group stated it will publish its audited results in September, according to the press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.