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LONDON - Sovereign Network Group (SNG), the UK’s sixth largest housing association, has reported a significant increase in its operating surplus for the fourth quarter of the financial year 2024/25, with unaudited results showing a 42.9% year-on-year growth. The company attributes this performance to higher sales turnover driven by new home income and a rent uplift, which have outpaced inflationary rises in operating costs and investment market value changes.
For the quarter ending March 31, 2025, SNG’s turnover reached £220.9 million, up 12.2% from the previous quarter and 22.2% from the same quarter the previous year. Operating costs, including cost of sales, operational costs, and depreciation, stood at £181.7 million, marking an increase from both Q3 and the prior year’s Q4. The retained surplus for Q4 was notably higher at £25.6 million, a substantial 61.3% increase from the previous quarter and a significant 441.5% jump from the same period last year.
SNG’s development program delivered 721 new homes in Q4, contributing to a total of 1,611 new homes for the fiscal year. The development pipeline holds 11,369 units, with 7,536 committed, including joint venture units.
In terms of treasury, the group reported long-term facilities totaling £4,694 million, with £4,052 million drawn, and available liquidity of £642 million plus cash reserves of around £80 million. SNG also established a £1.5 billion Euro Medium Term Note program to facilitate flexible capital market access and reported substantial headroom against interest cover and gearing covenants.
Credit ratings for SNG remain stable, with Moody’s rating the group at A3 and S&P at A-.
The company also highlighted its customer services initiatives, including the launch of a new customer engagement framework and the first meetings of its Customer Influence Panel and Scrutiny Panel, which are examining anti-social behavior levels and satisfaction score discrepancies between genders.
In community and sustainability efforts, SNG has measured an indicative £140 million of social value in FY25, partnering with 424 community organizations, supporting numerous customer job and training outcomes, and providing thousands of interventions for fuel poverty, financial inclusion, and digital inclusion.
Corporate affairs at SNG have been active, with the group engaging with government and policymakers to influence housing sector growth plans, with the Group CEO and senior leadership maintaining regular discussions with MPs and ministers.
This performance update is based on a press release statement from Sovereign Housing Capital Plc.
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